A recent change to Reddit's Terms of Service has led to a noticeable uptick in the trading activity of its Community Points in the form of tokens. This modification explicitly enables the exchange of Reddit's tokenized Community Points, which may explain the significant price rise this week.
The native token of Reddit's r/CryptoCurrency community, known as Moons (MOON), has seen its value skyrocket over the past week, achieving triple-digit percentage gains and up over 400% in the last 7 days. With over 6.5 million users in the community, an analyst has pointed to Reddit's updated terms of service as a potential trigger for the stunning rally.
What is Moon (MOON)?
Moons are ERC-20 tokens given out as rewards to users for contributing posts or comments on the r/CryptoCurrency subreddit. These tokens have multiple uses within the community - they can be traded, tipped, or utilized for various purposes. Users can also store these tokens in Reddit's Ethereum-based wallet, known as Vault.
Another Reddit token, the Bricks (BRICK), which is rewarded to users contributing to the r/Fortnite subreddit, has experienced a remarkable 300% increase over a two-day period, and up over 80% in the last day.
A trending post over the weekend on the r/CryptoCurrency subreddit disclosed a change in Reddit's terms of service, which now permits the exchange of verified virtual goods like avatars and the platform's community points.
Reddits Community Points - More easily Tradable?
While Reddit's Community Points have always been tradable, the process was somewhat inconvenient through the Reddit app. To do so required exporting the private key from the Reddit wallet and importing it into a crypto wallet, before proceeding to trade on an Arbitrum Nova DEX.
The members of the r/CryptoCurrency subreddit greeted the updated terms with positivity and the cryptocurrency exchange Kraken thanked the subreddit for its updates regarding the change.
Support from Kraken
A Kraken representative also indicated their openness to integrating new digital assets, a statement that boosted expectations for a potential listing of the Moons token on the Kraken exchange.
This anticipation potential listing of Moons (MOON) on Kraken could have also contributed to the token's recent price surge.
There is also the possibility of multiple exchanges listing this token.