What will happen to Moons once Reddit IPOs? Will the SEC’s persecution of crypto lead risk-averse Reddit to get rid of them?

With Reddit's IPO upcoming, I am curious what the community thinks will happen to our beloved moons, the NFT avatars, and the other crypto-backed rewards currently implemented across Reddit. As you all know, the SEC has drawn a stark line on what it interprets as securities. No doubt they would consider moons, NFT-avatars, and fortnite bricks or eth donuts as securities too. What are the implications for the community going forward?

We've recently witnessed reddit shedding any high-liability issues such as some of the fringe NSFW content. Does that mean they're likely to clamp down on the existence of moons, etc. in an effort to shield themselves from liability in the US (and possibly other jurisdictions)?

It's impossible to say for sure what Reddit will do with moons and other crypto-backed rewards after its IPO. However, there are a few possible scenarios that could play out.

Scenario 1: Reddit keeps moons and other crypto-backed rewards as is.

This is the best-case scenario for the community. It would mean that Reddit is willing to continue to support the use of crypto on its platform and that it believes in the potential of these technologies.

However, this scenario is also the least likely. As mentioned, the SEC has been cracking down on crypto-related projects, and it's possible that Reddit would be hesitant to risk regulatory scrutiny by continuing to foster the existence of moons and other crypto-backed rewards.

Scenario 2: Reddit removes moons and other crypto-backed rewards.

This is the worst-case scenario for the community. It would mean that Reddit is no longer willing to support the use of crypto on its platform and that it believes that the risks outweigh the benefits.

This scenario would be a major blow to the community, as it would effectively kill the value of moons and other crypto-backed rewards. It would also be a setback for the adoption of crypto as a whole, as it would show that even a major platform like Reddit is not willing to embrace it.

Scenario 3: Reddit creates a new crypto-backed reward system.

This is a middle-ground scenario. It would mean that Reddit is still willing to support the use of crypto on its platform, but it would want to do so in a way that minimizes its own risk.

One way that Reddit could do this is by creating a new crypto-backed reward system that is designed to comply with SEC regulations. This system could be based on a different tokenomics model than moons and other existing crypto-backed rewards.

There may also be some legalese that I’m unaware of that may allow the Reddit community to keep moons as they are today in spite of a worst case US crypto policy.

It's also possible that Reddit could partner with a third-party crypto company to manage its crypto-backed reward system. This would allow Reddit to offload some of the risk and compliance burden onto the third-party company.

I’m scared to think of what Reddit will do with moons and other crypto-backed rewards after its IPO. However, as the SEC continues to expand it’s conflict with the digital asset community I’d be surprised if the humble reddit moon escapes unscathed.