Reddit Moons Surge Amid Speculation and Platform Currency Changes
The content aggregation and discussion platform Reddit is embroiled in controversy but managed to boost the price of Moons. MOON, crypto earned by participating in the r/CryptoCurrency subreddit, spiked by 75% on Monday.
The increase in value leaves room for speculation about the platform’s intentions following the recent announcement of phasing out Reddit coins.
Moons Spike After Phasing Out Announcement
MOON is trading close to $0.1649 on CoinMarketCap at the time of writing, recording an over 75% increase on the daily charts on Monday.
Users participating in the r/CryptoCurrency subreddit can get MOONs as an award. The token can then be used to purchase premium features on the subreddit and can be ‘tipped’ to other users. But there has been dissatisfaction in the community lately.
This week, Reddit revealed its decision to phase out Reddit coins. Reddit coins are also virtual currency but are used for purchases on Reddit Premium. This decision came shortly after a “Reddit blackout” saw many subreddits ‘go dark’ in protest against proposed API changes.
Reports noted that the changes had impacted several applications as the platform roots profitability and efforts to combat unauthorized third-party use of its software.
Take a minute to learn about how NFTs are sold on Reddit: How To Sell Reddit Avatar NFTs
Reddit’s Contradictory Moves Lead to Speculation
Reddit’s decision to discontinue coins that bought a modest revenue stream has led to speculation. Reports note that the move to restrict API access and subsequent discontinuation of coins might be an attempt to eliminate free Reddit Premium. Reddit Premium, which provides ad-free perks, could be moving to a new revenue stream.
The community response to these changes has been mostly negative through blackouts.
Considering Reddit’s existing interest in the crypto sector, new changes have fueled speculation about the potential adoption of its own cryptocurrency or digital currency system.
Previously, Reddit ran three generations of NFT avatars as part of its foray into the world of NFTs (non-fungible tokens). Reddit Collectible Avatars NFT holders topped 10 million in May. In February, it surpassed the market cap of $36 million and hit a significant milestone by more than 10.6 million mints.
Reddit’s rumored decision to implement its own crypto/currency system would impact the value of MOON. MOON is already a popular ERC-20 token within the subreddit, and its use could extend to rewarding users for participation in other aspects of the platform. However, the platform has not confirmed the plans for a cryptocurrency system.
Meanwhile, Reddit may eventually integrate Moons into its wider platform, perhaps allowing purchases on Reddit. The spike in MOON’s value, coupled with community backlash and speculation, highlights a change phase for the network.