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Reddit modified its terms of service to permit the trading of community points. In the last 24 hours, Reddit’s MOON, the community token for the r/cryptocurrency subreddit, has increased by 62% as a result of the social media platform changing its terms of service to permit trading of the points.
Coingecko’s records show that the value of the digital asset increased by almost 200% over the previous week, going from about $0.09 to $0.278. The layer2 network, Arbitrum (ARB) Nova, is the foundation for the Ethereum (ETH)-based coin MOON. The virtual currency can tip community members for their contributions and buy premium features on the subreddit.
Reddit Cryptocurrency MOON: What happened?
The terms of service (ToS) of Reddit have been modified to permit users to “earn, claim, purchase, sell, or give certain virtual avatars, goods, currencies, or items that can be cryptographically verified.” The modified ToS was discovered originally by the unofficial r/Cryptocurrency MOON’s Twitter account.
Bobby Ong, co-founder of CoinGecko, emphasized that the modified terms of service clearly distinguish between Verified Virtual Goods, such as Avatar and Community Points, and Unverified Virtual Goods, such as Coins and Awards.
Users can now trade web3 tokens on Reddit just like community points. Reddit’s community points have always been exchangeable, but doing so through the Reddit app has proven to be challenging for users.
Ong pointed out that individuals interested in trading Reddit Digital Collectibles previously went through the procedure of exporting the private key for their Reddit wallet to another cryptocurrency wallet and then exchanging the community points on Arbitrum Nova DEX.
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. Over time, Reddit has emerged as one of the key hubs for supporters of digital assets. It was founded in 2005 by Steve Huffman and Alexis Ohanian; the latter left the business in 2020 to make a name for himself in the cryptocurrency and NFT industries.