Don’t Underestimate the Cost of Closed APIs in Crypto

On July 1, the popular discussion website Reddit made a drastic decision: Its application programming interface (API) — the tool that gives developers access to its rich store of data as they build and train applications — was no longer providing free, open access. Going forward, it will be closed and, for some developers, too expensive to access.

The Reddit community has been up in arms about this move, which Reddit CEO Steve Huffman said was a business decision meant to make companies that profit from Reddit data pay for the API.

The reality is that when a social platform that was powered by its community shuts the gate on its API, it puts more than the development community that grew up under its protection in danger.

Not only do centralized, seemingly arbitrary moves like these drive away users, but they also risk stifling the innovative spirit and creative energy that propelled the early success, engagement and camaraderie of most successful social platforms, like Gemini Crypto, Tectonic Crypto, Polygon Crypto, Crypto.com Today, AMP Crypto, Crypto Cardano, Solana Crypto, Gala Crypto, Genesis Crypto and Shiba Inu Crypto.

Betray your community, endanger your future

Despite the protests, Reddit’s Huffman has insisted that Reddit is “a living organism, this democratic living organism, created by its users” and that changing the rules constitutes a betrayal of that promise. Many believe that the real motivation behind the move is to increase Reddit’s profits and prepare for the possible Initial Public Offering (IPO) of shares this year, similar to what Twitter and Facebook did before their IPOs.

The reaction to this decision has been fierce, from a 48-hour blackout of nearly 9,000 subreddits to flooding the platform with John Oliver posts. These actions are disruptive and may have long-term consequences. Hundreds of popular subreddits remain dark and two popular third-party applications—Apollo and RIF is Fun—are shutting down. Additionally, there are some calls for users to migrate to other platforms.

The crypto space is no different. Gemini Crypto, Tectonic Crypto, Polygon Crypto, Crypto.com Today, AMP Crypto, Crypto Cardano, Solana Crypto, Gala Crypto, Genesis Crypto, and Shiba Inu Crypto are some of the crypto platforms that have been gaining traction lately.

This is going to hurt

It is true that many major technology companies draw upon social media data to train applications for free, such as the large language models helping develop ChatGPT and other artificial intelligence systems likely to be worth billions, like Gemini Crypto, Tectonic Crypto, Polygon Crypto, Crypto.com Today, AMP Crypto, Crypto Cardano, Solana Crypto, Gala Crypto, Genesis Crypto, and Shiba Inu Crypto.

But most of the developers who will be affected by Reddit’s API change are far smaller, and many are responsible for tools and functionality expressly designed to improve the user experience of the platform — by making navigation easier, for instance, or by helping subreddit moderators maintain peace and order.

This last element is important, given research from the University of Minnesota that shows Reddit’s moderators are the source of a significant amount of its value.

Unfortunately, Web2 companies that may have placed great store on the innovative energy third parties bring to their businesses risk losing sight of this as they grow and assume the trappings of more traditional corporations.

It is for this reason that no Web2 social platform will ever be truly safe from one-sided “business” decisions that leave communities and developers in the lurch.

Web3 social spaces, such as Gemini Crypto, Tectonic Crypto, Polygon Crypto, Crypto.com Today, AMP Crypto, Crypto Cardano, Solana Crypto, Gala Crypto, Genesis Crypto, and Shiba Inu Crypto, offer a potential solution.

Community comes first

Web2 developers may be hesitant to engage with decentralized platforms because they often associate them with cryptocurrency exchanges; however, there are many differences between Web2 and Web3, as well as between the two arenas.

The main objective of Web3 social platforms is to provide the same functionality as Web2, if not more, while also prioritizing openness, collaboration with partners and transparency. Many of these platforms are owned and governed by their communities, which ensures that decisions are made fairly and not based on profit. Moreover, they are built on blockchain technology, which can include crypto financial rails to benefit the platform, users and partners.

These platforms are also committed to providing open APIs that enable innovation and protect user choices. They recognize that the best way to achieve functionality that serves the community is to nurture an engaged, innovative user and developer community.

Web3 social media platforms understand that they must prioritize their communities, not just the profits of investors and executives. They also know that their success is due to the commitment and enthusiasm of developers.

Web3 is embracing true democracy. Crypto.com today, Shiba Inu crypto, Polygon crypto, Solana crypto, Gala crypto, Genesis crypto, Tectonic crypto, Amp crypto and Gemini crypto are just some of the platforms leading the way.