Brian Armstrong, the CEO of America’s number one exchange Coinbase, has lauded Reddit’s new ‘community points’ feature as a ‘huge deal’ for the cryptocurrency industry.
This is a huge deal for crypto - Reddit (top ten website in the U.S.) has launched their cryptocurrency integration: https://t.co/ziLPJZANO4— Brian Armstrong (@brian_armstrong) May 14, 2020
In the future, he expects it to become the new blueprint for how crypto startups launch their own tokens.
Reddit’s crypto experiment
Reddit, a discussion website that boasts more than 450 mln active users, recently unveiled two Ethereum-based tokens.
The ERC-20 cryptocurrencies, named ‘moons’ and ‘bricks,’ will be initially available for /r/Cryptocurrency and /r/FortniteBR. The combined audience of these two subreddits surpasses 2.4 mln subscribers.
These tokens, which can be stored with the help of the in-built ‘Vault,’ will be used to get access to advanced community features and tip other members.
Sticking to the crypto’s core ethos of decentralization, nor subreddit moderators nor Reddit bosses can get their hands on these tokens.
The new ICO?
After the great ICO bubble of 2017 burst, Ethereum seemed to have lost its mojo, which explains why its price is down 86 percent from its all-time high.
Armstrong says that more crypto startups will emulate Reddit’s token launch model to incentivize their communities.
Overall this is really well executed, and a model for other crypto startups to emulate for a token launch that helps bring an online community together, and delivers real value.— Brian Armstrong (@brian_armstrong) May 14, 2020
The internet finally has a native currency. It's working folks!
As of now, the project is a beta-test phase, but Reddit plans to migrate the tokens from the Rinkeby testnet to the Ethereum mainnet in late 2020.