Today the price of MOON, the crypto of Reddit “r/CryptoCurrency” community, has suddenly soared 31%.
As of today, the subReddit has over 6.5 million users.
Until last night its price was $0.20, while this morning it jumped to nearly $0.34 and then settled back to around $0.25.
Reddit: the reason for the surge in the crypto MOON
The reason for this sudden boom is the news that Reddit recently updated its terms of service, explicitly writing that it is now allowed to trade the platform’s tokenized Community Points.
Reddit Community Points are the tokens that community managers on the platform can create and distribute. Most notably, as in the case of the CryptoCurrency subreddit and the MOON token.
They are used to offer rewards to users, encouraging the production and publication of quality content, and to unlock special features.
In addition, they are a measure of users’ reputation within the various communities, insomuch that in the subreddit they are shown next to the username.
The fact is that these points are actually tokens on blockchain, so they can also be carried elsewhere.
With community points you can also buy Reddit coins specific to subreddits.
On Reddit’s official website they write:
“Community Points are the first step towards a different future for online communities. These tokens live on the blockchain, which means they are truly owned by the community. Over time, your community will benefit from even greater control and independence — on and off of Reddit.”
MOON: price trend
The MOON token debuted in the crypto markets back in March 2021, at the height of the bull run.
Its initial value was around $0.06, but as early as August of that year it hit its all-time high at over $0.43.
During the bear-market of 2022 it had also fallen below $0.04, closing the year at $0.07.
However, in 2023 it made a significant rebound, reaching $0.33 in March, which still stands as the annual high.
This substantial rise began in mid-January, and ended after mid-March. Thereafter, the price fell again to $0.08 in mid-June.
Thanks to today’s boom, it is back above $0.25, which is just over half of its all-time high.
As is clear from these numbers, this is a token with a very volatile value, although its excursions are never exaggerated.
In other words, its price varies all the time, with alternating highs and lows that nevertheless never register excessive booms or crashes.
While it has all the appearance of a speculative token, some underlying utility transpires that prevents the price from making exaggerated movements.
The BRICK token
A very similar fate has befallen another token from the Reddit communities, namely BRICK from the Fortnite subreddit.
Indeed, while last night its market value was $0.016, today it jumped to $0.029, after also rising to $0.039 overnight.
BRICK has been trading on the crypto markets since as far back as October 2020, when it landed on the markets at $0.036 even before the start of the last big bullrun.
It peaked again in 2021, in September, when it briefly exceeded $0.400. This means that the current value is still as much as 92% below the highs.
During the bear-market of 2022 it touched its all-time low, below $0.003, but by February 2023 it was back above $0.013.
In March it boomed for the first time, with the price also rising above $0.048, but only to fall back to $0.006 in June.
This too is a speculative token, with even greater movements than MOON.