The community is in a tizzy over the shocking 90% decline in value of the cryptocurrency MOON, which is intimately related to the social networking site Reddit. Many investors and fans are perplexed by the decline, which is seen in the most recent trade charts, and are doubting Reddit’s recent decisions.
The MOONUSD price chart shows a clear and abrupt decline, with the token falling from recent highs of about $0.65 to lows of about $0.05. Inevitably, such an abrupt and rapid drop prompts inquiries into the causes of this downward trend.
A close examination of the causes of this abrupt fall reveals a recent Reddit statement. The platform decided to end the Community Points beta at the beginning of November. Users will thus stop accumulating points in their Reddit Vault. This is especially noteworthy because MOON’s Community Points system was one of its main features, increasing demand and encouraging user participation. In many ways, the inherent worth of MOON was dependent on this ecology.
Reddit stated that scalability issues and the changing regulatory landscape were the main causes for ending the Community Points programme. The community has expressed displeasure about the product’s failure to expand to meet demand throughout the platform and the choice to focus resources on other features like the Contributor Programme and subreddit karma.
Going back to the data, it is clear that trade volume has grown dramatically throughout this downturn. This increase in activity can be explained by a mass exodus or sell-off of disappointed investors looking to minimise their losses. A picture of panic selling is painted by the lengthy bearish candles and huge trading volumes, which further accelerate the slide.
