this post was submitted on 19 Oct 2023
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Reddit’s blockchain-based “Community Points” rewards crash after sunsetting::Tokens based on subreddit reputation saw dips over 85% after the announcement.

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[–] fubo 9 points 1 year ago

Did Reddit actually accept any money for these junk tokens? It kinda sounds like they didn't, they just issued them and then decided to quit using them. If they did accept money for them, then yeah, sure sounds like securities fraud.

In general, the cryptocurrency "industry" cannot exist without crime (ransomware, fraud, money laundering, etc.) -- but this one just seems like a bad product that was cancelled. Most major cryptocurrencies should be considered to be backed by crime, in the same sense that dollars used to be backed by gold and silver: the underlying value of Bitcoin is that you can use it to pay criminal ransoms or acquire fentanyl. But this one just seems to have been backed by fake internet points.