MOONUSD loses its “Moonlight” as the “USD” value drops by 95%
The price of MOONUSD, the Reddit-issued cryptocurrency, registered a record-breaking low. With the latest price hovering near $0.05, the coin has experienced a significant decline of 90%, leaving investors and users in jeopardy.
The decline occurred after Reddit decided to discontinue the major use case of MOONUSD, which was redeemable Community Points that rewarded users based on their engagement and offered real-world value to MOONUSD.
MOONUSD’s value graph began declining following the platform’s announcement of discontinuing the community points Beta at the beginning of the next month.
The key reasons behind this decision are the latest developments in regulatory provisions and restricted scalability, according to Reddit. Low product scalability failed to meet users’ expectations, leaving them frustrated. When the platform decided to allocate resources to other features such as subreddit karma and the Contributor Program, it further annoyed users.
The decline period shows a remarkable volume surge, indicating significant sell-offs by investors trying to exit the market before conditions worsened. This naturally created panic and contributed to negative market sentiments, ultimately resulting in the coin losing 95% of its value.
By: Jitendra Bhojwani
