Cryptocurrencies have gradually but steadily penetrated mainstream markets as more and more people become aware of the technology worldwide. Reddit has taken on the responsibility of bringing the popularity of the crypto world to the next level by launching its own tokens.
On Wednesday, the Alexis Ohanian co-founded website revealed that they were beta testing two different Ethereum-based virtual assets for users to dabble in. These tokens are intended to serve as incentive systems for users who post content to Reddit.
Reddit stated that the decision to launch the two tokens was part of a routine experiment to improve the ecosystem. Two tokens called $MOONS and $BRICKS will be available to members of the subreddits / r / Cryptocurrency and / r / Fortnite BR. These sub-reddits will be part of Reddit’s new venture known as “Community Points.” Engaging subreddits like Fornite was a move to bring in millions of more people into the nascent cryptocurrency world.
These Group Points will be made available to users in the form of badges, individual GIFS and other character attributes. Once the beta test is completed, Reddit plans to take feedback from all users and compare notes. Every four weeks, Reddit aims to publish a list of how much karma each user has earned in each community. Once this process is completed, the community has a one-week window to review the lost and propose any changes if they exist.
$MOONS and $BRICKS can be used by users to vote, transfer funds and tip content creators without the difficulty of tracking different entities. In order to ensure that transparency is maintained, the members of Reddit will be able to see each other’s token balances. This move was initiated to block any kind of illegal activity or phishing on the website.
In addition to the forthcoming digital tokens, Reddit is also expected to launch a native asset management platform called Vault. According to the Reddit website, the Vault was a way for Reddit users to function as one, building a diverse and exclusive culture. Vault was developed after Reddit found that certain groups had been cut off from others, hindering collaboration and creativity.
Both Vault and the two tokens will be checked by Reddit and Trail of Bits over the summer. The Social Media Platform reported that Trail of Bits was an independent security company with blockchain experience to analyze smart contracts and mobile applications. Added the Reddit Vault extension:
“Community Points are currently in beta (through summer 2020). During that time, they will be on the Rinkeby testnet, and balances, transactions, and memberships may be reset. After the feature leaves beta, Community Points will be migrated to the Ethereum mainnet. Points balances will be carried over (though will need to be reclaimed). To identify potential bugs, Reddit is inviting security researchers to assist in finding the vulnerabilities in Community Points. “
The announcement definitely delighted at the cryptocurrency community because of the positive effect it might have on future industries. Ethereum also witnessed a small increase in its price post announcements, but this may have been helped by the ongoing market bull run. At the time of the press, Ethereum traded $199.1 with a total market cap of $22.1 billion. The 24-hour market volume had increased to $18.15 billion after a 4 percent price hike over the previous day.