Coinbase CEO Brian Armstrong Calls Reddit's Tokenization Effort 'Huge Deal' for Crypto

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Fri, 05/15/2020 - 07:26
Alex Dovbnya
Coinbase CEO Brian Armstrong says that Reddit’s ‘community points’ feature could represent a new tokenization model
Cover image via twitter.com
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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.

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.

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. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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