Digg has released a toolbar called the Diggbar and in the process has pretty much killed any reason for website owners to try and promote their sites on Digg.
The toolbar works by capturing the target page in an iframe and shortening the URL, you can see it in action here.
The Diggbar is going to be fantastic for Digg but no so much for content producers. Basically Digg has turned into a Tweetmeme style service with millions of users already.
The main issue with the new Diggbar is that Digg no longer links directly to stories – they are linking to the shortened Diggbar URL instead. This means that not only do you lose any links from digg.com but you also lose the links you get from lazy bloggers who will just link to the shortened Diggbar URL.
To add insult to injury the Diggbar source code has lots of extra content such as comments and related stories as well as an SEO friendly title so will outrank the original post in a lot of cases.
Finally you will notice that the Diggbar links both to the Digg story page and the page on the source website. Guess which one gets the optimised anchor text?
We stopped using Digg for linkbait 9 months ago, I suggest you do the same.