What happened with the price surge of over 400% in the community tokens of multiple subreddits in just two days?

Why did the community tokens of multiple subreddits experience a 400% price surge in just two days?

Author: Bobby Ong, Coingecko Founder; Translator: LianGuai0xxz

I haven’t seen much discussion about Reddit’s Community Points on Twitter, so I wanted to share some observations.

Because the community tokens MOON and BRICK issued on Arbitrum Nova by the subreddits r/cryptocurrency and r/fortnite have increased by more than 400% in the past two days.

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MOON rose from 0.095 on the 17th to 0.5 at the time of writing.

BRICK rose from 0.0059 on the 17th to 0.071 at the time of writing.

I was surprised, so I went to find the reason. It turns out that there have been some interesting changes in Reddit’s user terms. Virtual goods like Coins and Awards in Web2 centralized platforms will disappear, and Web3 community points can now be traded.

Well, this is a big deal. Many people don’t know that the Reddit app comes with a cryptocurrency wallet and has attracted millions of users to use cryptocurrencies.

Reddit subreddits distribute community points to active users every month, and Reddit community points have always been tradable. It is easy to send community points to other Reddit users from the Reddit app.

But it is indeed troublesome to trade these tokens from the Reddit app. To make a trade, you need to export the private key from the Reddit wallet and import it into a cryptocurrency wallet, and then trade CP on Arbitrum Nova DEX.

Due to speculation and speculation about the upcoming changes in Reddit, both of these tokens have seen an increase.

No one knows exactly what is happening, but the deprecation of Web2 Coins & Awards by Reddit while allowing its Web3 CP to be traded may be something worth paying attention to in the coming months.

Reddit Coins are the main source of revenue for Reddit. For companies planning an IPO, they need something else to make up for the loss of revenue. Will Reddit fully embrace Web3 and integrate with DEX natively? Who knows, but we can all speculate. Their NFTs have been very successful.

It would be interesting to see Reddit promote community points to more Reddit subreddits. Then let each community moderator decide how to best use the tokens to manage their community. For example, MOON tokens can be burned to purchase ads and AMA on the r/cryptocurrency subreddit.

We are seeing more and more social media platforms rewarding users with real dollars for the value they contribute to the network. We see Reddit doing this with CP, while Twitter distributes ad fees to top contributors. People are no longer interested in useless vanity badges.

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