Reddit Community Tokens Rocket as Rule Change Speculation Boosts MOON, BRICK
Reddit changed its Terms of Service recently where it now explicitly allows for trading Reddit's tokenized Community Points, one observer said while explaining the price rally.
Moons (MOON), the native token of Reddit's r/CryptoCurrency community of over 6.5 million users, has chalked up a triple-digi t price gain this week. One analyst cited Reddit's recent change in terms of service as possible reason for the impressive price rally
MOON's price has surged 170% to almost 25 cents from 9 cents, according to data tracked by . The cryptocurrency is listed on SushiSwap, and MEXC.
Moons are ERC-20 tokens distributed as rewards to users for their posts or comments in the r/CryptoCurrency subreddit. The coins can be freely traded, tipped, or spent in the community for different purposes. The tokens can also be stored in Reddit's Ethereum-based wallet, called Vault.
The Bricks (BRICK) token, distributed as a reward for contributions in the r/Fortnite subreddit, 300% in two days.
Over the weekend, a in the r/CryptoCurrency subreddit said Reddit's terms of service have changed, allowing the trading of verified virtual goods like avatars and Reddit's community points.
Per Coingecko's co-founder and COO, Booby Ong, the speculation about impending changes to Reddit has driven the two tokens higher.
"Reddit's Terms of Service recently changed where it now explicitly allows for trading Reddit's tokenized Community Points. The change also goes alongside the removal of Reddit's non-tokenized Coins and Awards. No firm changes have been announced for Reddit's Community Points yet, but the community is speculating that Reddit will give more attention to the Community Points. This has resulted in MOON and BRICK tokens increasing by over 100% in value this week," Ong told CoinDesk.
Note that community points have always been tradable, but it's troublesome to trade those through the Reddit app, per ONG. "It's easy to send CPs to other Reddit users from the app, but to trade them, one has to export the private key from the Reddit wallet and import it into a crypto wallet. Then trade the CPs on an Arbitrum Nova DEX," ONG said in a .
Users of the r/CryptoCurrency subreddit responded positively to the terms of change post, with cryptocurrency exchange the subreddit for providing updates about the change in terms of service.
A member of Kraken added that the exchange is "always open to adding new digital assets. The comment has raised hopes for an eventual listing of the Moons token on the Kraken exchange and may have contributed to the token's price surge.
Edited by Parikshit Mishra.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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