Reddit Moon (Courtesy: Twitter)
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Reddit-Cryptocurrency Gains Value In Market

Reddit Moon (Courtesy: Twitter)
Reddit Moon (Courtesy: Twitter)

Reddit introduced crypto this spring by distributing MOON and BRICK tokens to its cryptocurrency and Fortnite communities. Until recently, there were no practical uses for these tokens. The coins were simply used to manage badges and reputation scores, similar to post and comment Karma on the website. Neither of these had monetary value.

However, Reddit introduced a new feature last week—the ability to turn MOON and BRICK tokens into Reddit Coins. Those coins are Reddit’s non-blockchain-based digital tokens, which provide access to Reddit’s premium features and can also be bought with U.S. dollars and other fiat currencies.

Because of its redeemability for Reddit’s premium currency, users are now willing to pay real money for the MOON token, which is being traded speculatively on various token swaps.

Converting MOON to DAI stablecoins requires several steps due to the fact that the MOON token was built on Ethereum’s Rinkeby testnet. There are about 7,000 MOON holders, according to market statistics.

Though Reddit has always allowed the free trading of MOON tokens, it seems that the site did not intend the MOON token to have real tradeable value on exchanges. Nevertheless, it has done so by giving those coins utility and creating demand for those tokens. Now each MOON token is trading at about 9 cents on decentralized exchanges.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.