Reddit is in crisis as prominent moderators loudly protest company's treatment of developers

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Prominent Reddit moderators are locking down their subreddits in protest of the company's recent decision to raise the price of access to its data. CNBC

from cash-burning tech companies. It's not clear at the moment when an IPO could happen.

Shane McCarthy, chief marketing officer of enterprise software vendor Sandboxx, said many CMOs are surprised with how much referral traffic their website can get when one of their products is discussed in a particular Reddit community. Those sites could see a sudden decrease in traffic because of the blackout, McCarthy said, ultimately hurting their search rankings and driving up marketing costs.

Although ModCoord has been used for past Reddit protests, it's"not something that the moderators pull out lightly," said a Reddit user named Omar, who helps run the ModCoord subreddit and Discord community, in an interview. Like several moderators who spoke to CNBC, the person asked not to be credited with their full name for fear of online harassment.

"There are legitimate health concerns, eating disorders, injuries," she said."[It's about] trying to make sure that people are staying safe and healthy in their activities while also not being inundated by bots or spam accounts." Gilbert added that Huffman's recent comments about instituting possible policy changes that would let Reddit users more easily remove moderators to be"highly concerning for a number of reasons."

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Reddit is in crisis as prominent moderators loudly protest the company's treatment of developersReddit moderators tell CNBC that company management has failed to engage with them in rolling out a huge price increase for developers.
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