While Telegram and Facebook are still facing issues in their planning and launch of their cryptocurrency, Reddit took the leap and launched it’s very own crypto for its users named “Moon”. The working strategy of Reddit cryptocurrency is different from that of Facebook and Telegram. But at least for Reddit, the game crypto is on.
Reddit has always been in controversies, it is a discussion platform with around 430 million active monthly users. The Reddit cryptocurrency will provide people with the lucky chance to purchase exclusive badges on the website. They can even buy exclusive emoji GIFs and post them as a comment. As stated, the Reddit game plan for the cryptocurrency is a lot different when compared to others. The Reddit crypto will be available to around 1million users from the midsummers.
Reddit Crypto will not work as a cryptocurrency launched for in-game cash prizes or like other video games cash. It is an actual cryptocurrency that is running on Ethereum Network. We shouldn’t forget that Reddit has a huge user, and launching its cryptocurrency means that it will be ahead in the game from tech companies like Facebook and Telegram.
These other tech companies are fighting hard to enter the cryptocurrency market for a long time now. They have even faced clashes with regulators and authorities of the court regarding this decision. Telegram, on the other hand, has discontinued his plans of cryptocurrency launch after getting knocked down several times by authorities. Facebook is continuing with his struggle to make sure that his cryptocurrency Libra enters the market at the soonest. But synopsis says that Facebook’s Libra can’t be launched any soon.
Aaron Brown, a crypto investor and a writer at Bloomberg Prophets says, A “possibility is the plan is to introduce the currency and get people used to it and then gradually build it into a valuable general exchange currency.” The currency can further be used to buy content, subscription, or even to purchase goods on websites or even beyond that. A trading system can also be created using the currency.
Even if all that is possible it won’t be happening anytime soon. The reason being, before circulating the crypto exchanges have to list tokens and needed to be named differently for each Reddit subgroup. The user should be able to set a digital wallet to accept currency using Reddit mobile app using Android or iPhone.
According to Reddit, the cryptocurrency is just a try-out. Other subreddits are running tests on cryptocurrency. Fortnite BR is one such example that people utilize for playing Fortnite: Battle Royale. The concept of the token is very common among gamers. V-buck is another popular example which people can purchase or earn while playing the game.
“We continuously run experiments to explore features that engage our users and communities,” said Reddit spoke person, based in San Francisco. “With Community Points, we’re working exclusively with two communities to test this feature and gather feedback from our users.” It was further clarified that Fortnite Epic has no association with this effort of Reddit.
But some crypto analysts have their doubts clouding in their minds. They think that the awards of community point can be related to “karma.” Reddit uses “karma” as a source of income, for example for posting a smart comment.
Will Price, a data scientist at researcher Flipside Crypto says that Reddit needs to be careful with the policies and usage of its cryptocurrency so that the users don’t misuse the cryptosystem. Also, Reddit is keeping 20 percent of the tokens for itself, the users might not be united with it.
Price adds “That being said, if all goes well, this could be the first step towards a more engaged and invested Reddit community, raising the bar for quality content creation and curation.”