Reddit made a small but essential change to their terms of service this week that had a significant impact on the platform’s MOON cryptocurrency. MOONs, the community token for the r/cryptocurrency subreddit, skyrocketed over 200% in value after Reddit updated its terms to officially allow community points to be traded.
MOON Price Pumps After Reddit Updates Terms Of Service
According to a post on Twitter, the terms of service (ToS) of Reddit have had interesting changes for a clear separation between virtual goods (web2) and verified virtual goods (web3).
Interesting changes to Reddit TOS.
Clear separation between Virtual Goods (web2) and Verified Virtual Goods (web3).
• Coins ❌
• Awards ❌
Coins and Awards to be canceled soon.
Verified Virtual Goods:
• Collectible Avatars
• Community Points
— r/Cryptocurrency MOONs (@unofficalMoons) July 16, 2023
Under the new terms of service, verified virtual goods in the tune of collectible points and community avatars can now be traded by users. Users can “earn, claim, purchase, sell, or give certain virtual avatars, goods, currencies, or items that can be cryptographically verified.”
While MOON tokens don’t give an ownership stake in Reddit itself, they are digital assets that represent ownership in Redit’s r/Cryptocurrency community. Created in 2020 on Arbitrum Nova as ERC-20 tokens, they are given as rewards for an individual’s contributions to the r/CryptoCurrency subreddit via posts or comments.
Moons are also distributed monthly using Reddit Karma as a basis for contributions. The more upvotes and karma the contributions of the r/CryptoCurrency subreddit has each month, the more tokens they’ll receive in the next distribution round.
According to data from Coinmarketcap, the token has soared more than 200% in the past 24 hours and an overall price increase of 444.74% n the 7-day chart. As users of Reddit rushed to grab their community tokens, trading volume soared by 384.01% over the course of the previous 24 hours. The token is now trading at $0.50, a drastic increase from its price of $0.09 earlier in the week.
MOON price sitting at $0.5 | Source: MOONUSDT on TradingView.com
Reddit Token Makes Its Way To Crypto.com
While the surge in price can be traced back to Reddit’s change in its terms of service, it can also be attributed to Crypto.com listing the token on its exchange. As one of the biggest crypto exchanges in the US, MOON’s listing on Crypto.com is a huge bullish event for the token.
The price also rose remarkably on Monday when news came out that Kraken, another cryptocurrency exchange based in the US, was contemplating listing MOON. However, the exchange has come out to say it isn’t planning on listing the token at the moment. Nevertheless, MOON is already listed on centralized exchanges like MEXC and Gate.io, as well as decentralized exchanges SushiSwap and RCP Swap.
Featured image from Metaroids, chart from TradingView.com