Reddit changed its term of service to allow community points to be traded.
Reddit’s MOON, the community token for the r/cryptocurrency subreddit, rose by 62% in the last 24 hours after the social media platform changed its term of service to allow the points to be traded.
According to Coingecko data, the digital asset’s value jumped by nearly 200% during the past week, rising from around $0.09 to $0.278 at the time of writing.
MOON is an Ethereum (ETH)-based token built on the layer2 network, Arbitrum (ARB) Nova. The digital asset can be used to purchase premium features on the subreddit and tip individual contributions to the community.
Reddit’s changed ToS?
Reddit has changed its terms of service (ToS) to allow its users to “earn, claim, purchase, sell, or give certain virtual avatars, goods, currencies, or items that can be cryptographically verified.” The unofficial account for r/Cryptocurrency MOONs on Twitter first spotted the changed ToS.
CoinGecko co-founder Bobby Ong pointed out that the changed terms of services make a clear distinction between Virtual Goods such as Coins and Awards and Verified Virtual Goods like Avatar and Community Points.
Reddit is now allowing users to trade web3 tokens like community points. While Reddit’s community points have always been tradable, it has been difficult for users to trade the tokens within the Reddit app.
Ong noted that those who want to trade Reddit Digital Collectibles previously went through a process of exporting the private key for their Reddit wallet to another crypto wallet and trading the community points on Arbitrum Nova DEX.
The recent change to the ToS has increased speculations that Reddit might be fully embracing web3 tokens. Considering that it is sunsetting one of its sources of revenue in Reddit Coins, many expect it will have to find another source to make money. Reddit Coins, non-blockchain digital tokens used on the platform for rewarding other users, are set to be discontinued by September as a part of this change.
Ong speculated that Reddit might “embrace Web3 and incorporate DEX natively,” the social media platform might even decide to “roll out community points to more subreddits.”