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What is MOON and Why are Reddit Cryptocurrencies Suddenly Taking Off?

Published July 18, 2023 3:54 PM
Teuta Franjkovic
Published July 18, 2023 3:54 PM
Key Takeaways
  • On the daily charts, Reddit Moons saw a value increase of more than 68% on Tuesday, July 18
  • Recently, several users have expressed concern and displeasure about the website’s decision to phase out Reddit currencies
  • Future prospects for MOON are indicated by its prior involvement in NFTs and interest in the cryptocurrency industry

Reddit, a platform for content aggregation and discussion, is mired in controversy yet has succeeded in driving up the cost of MOON. On Tuesday, MOON , a cryptocurrency acquired through participation in the r/CryptoCurrency subreddit, increased by 68%.

After the platform recently announced that it would phase out Reddit coins , the spike in value raises questions about its objectives.

MOON Jumps After the Announcement

At the time of writing, MOON is trading about $0.2757 on CoinMarketCap, having seen a rise of more than 68% on Tuesday’s daily charts.

MOONs are a reward given to participants in the r/CryptoCurrency subreddit. The token can then be ‘tipped’ to other users and used to buy premium features on the subreddit. However, there has recently been unhappiness in the neighborhood.

Reddit announced this week that it has decided to phase out Reddit currencies. Although they are likewise virtual money, Reddit coins can only be used on Reddit Premium. This choice was made immediately after a “Reddit blackout” in which numerous subreddits went dark in opposition to suggested API modifications.

According to reports, the modifications had an effect on a number of applications as the platform worked to maintain its profitability and thwart illicit third-party use of its software.

Contradictory Actions by Reddit Fuel Speculation

Reddit’s move to stop accepting coins that provided a small revenue stream has given rise to rumors. According to reports, the decision to limit API access and the consequent withdrawal of coins may have been made in an effort to do rid of the free Reddit Premium service. Reddit Premium, which offers benefits including ad-free access, might switch to a new funding source.

Through blackouts, the community has mainly responded negatively to these changes.

Given Reddit’s current interest in the cryptocurrency industry, recent modifications have stoked rumors regarding the possibility of the platform adopting its own cryptocurrency or digital currency system.

When Reddit first entered the world of NFTs (non-fungible tokens), it ran three generations of NFT avatars. Over 10 million Reddit Collectible Avatars NFTs were held in May. It reached a crucial milestone in February when its market cap exceeded $36 million by more than 10.6 million mints.

The value of MOON would be impacted by Reddit’s rumored decision  to introduce its own crypto/currency system. Within the subreddit, MOON is already a well-liked ERC-20 token, and its application might also include paying users for using other features of the platform. The platform has not, however, officially endorsed the proposals for a cryptocurrency system.

Reddit may someday include Moons into its larger platform, potentially enabling Reddit purchases. The rise in MOON’s worth, along with criticism and rumors from the public, indicates that the network is going through a transitional period.

Due to its poorly explained API modifications, Reddit previously found itself in hot water.

Reddit once had a robust ecosystem of outside applications that used the open API to provide users with a better service. Many moderators and persons with visual impairments completely relied on these apps to make the platform easier to regulate and browse, however some of them were just easier to use.

Ironically, the majority of third-party Reddit client developers concurred that the API shouldn’t be free, but many were dissatisfied with the cost, which they felt was too high, and the short period between announcement and implementation.

Redditors reacted to these changes with blackouts, shutting down their communities or changing them to NSFW. Reddit retaliated by removing moderators who disobeyed by threatening to do so and actually doing so. It is unknown whether Redditors will launch another protest against the changes since awards have never been the most well-liked Reddit feature.

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