Famous social media platform Reddit recently made changes to its Terms of Service, explicitly allowing the trading of tokenized community points. As a result, two community altcoins skyrocketed.
The altcoin of the community in the r/CryptoCurrency subdirectory, called Moons (MOON), experienced a triple-digit price increase this week. An analyst attributed the impressive price increase to the recent change in Reddit’s terms of service.
According to data tracked by crypto data platform Coingecko, the price of MOON, which is traded on SushiSwap, Gate.io, and MEXC, increased by a significant percentage of 170, rising from $0.09 to $0.25.
Meanwhile, the altcoin Bricks (BRICK), which is distributed as a reward to community members in the r/Fortnite subdirectory, also experienced a high increase of 300 percent within two days.
MOON and BRICK, ERC-20 tokens distributed as rewards for posts or comments in the r/CryptoCurrency and r/Fortnite subdirectories, serve as community tokens that can be freely bought, sold, tipped, or used for various community expenses. These tokens can also be stored in Reddit’s Ethereum-based wallet called the Vault.
Over the weekend, a trending post in the r/CryptoCurrency subdirectory stated that Reddit had changed its terms of service, allowing the trade of verified virtual items such as avatars and Reddit’s community points. According to Bobby Ong, co-founder and COO of Coingecko, speculation about upcoming changes on Reddit led to the sharp rise of the two altcoins.
Ong said, “Reddit recently changed its Terms of Service, explicitly allowing the trading of Reddit’s tokenized community points. This change also came with the removal of Reddit’s non-tokenized coins and rewards. There hasn’t been an official announcement regarding the changes to Reddit’s community points, but the community believes Reddit will give more importance to these points. This situation led to MOON and BRICK tokens surging over 100 percent this week.”