After introducing two social cryptocurrencies, Reddit has now given users the option to spend or withdraw their tokens.
MOON Reddit has value now
Reddit introduced cryptocurrencies earlier this year, distributing MOON and BRICK tokens in their crypto and Fortnite communities. Until recently, they had no practical application. These coins were simply used to manage badges and reputation points, just like Karma points. Neither of them had any monetary value.
However, last week, the social networking site introduced a new feature – the ability to convert MOON and BRICK tokens into Reddit coins. These are tokens that are not based on blockchain and provide access to the portal’s premium features. They can be purchased with US dollars or other fiat currencies.
Convert MOON to DAI
Converting a MOON token to a DAI stablecoin is simple as MOON was built on top of Rinkeby’s Ethereum test network. According to market statistics, MOON tokens currently have about 7,000. people.
While Reddit has always allowed its tokens to be traded freely, it seems they didn’t intend to give MOON real commercial value. Nevertheless, he did so by making the coins useful and creating more demand. Currently, the MOON token on decentralized exchanges costs about 9 cents.
It is unclear whether prices will be stable. If users decide to sell their coins, or if Reddit eliminates their use, the value of the token can drop quickly. Moreover, the regulatory risk could cause the social networking site to slow down cryptocurrency distributions until the situation becomes clearer.
A breakthrough for technology
Brian Armstrong from Coinbase stated that the implementation of cryptocurrencies before Reddit was a breakthrough for the entire technology. He also added that it was all the result of the slow evolution and development of the cryptocurrency market.
For all the people who have asked me “where are the use cases?” This is how it has been over the years. A lot of hard work of people, integration of cryptocurrencies with real products. Slow, gradual improvement in the situation, moving the ball one meter a day – there is no big bang moment, he explained a few days ago. – The Internet finally has a native currency. It works folks! He added later.