Social media company Reddit started to give real value to Moon tokens to convert them into Reddit coins. Thus, a secondary market has emerged around Reddit’s MOON cryptocurrency.
Reddit gave the token a real value by offering a way to trade the MOON token for Reddit coins. Users can trade MOON on DAI through third party exchanges at current prices ranging from 5 to 10 cents. It is not clear whether the value of the MOON token is sustainable.
After introducing two community-specific cryptocurrencies, Reddit now offers users a way to spend or cash out their tokens.
Reddit’s MOON Is Now Worth
Reddit introduced its cryptocurrency by distributing MOON and BRICK tokens to the Fortnite communities this spring. Until recently, these tokens had no practical use. These crypto coins; used to comment on the website, manage badges and reputation points. None of these had monetary value.
However, Reddit introduced a new feature last week – the ability to convert MOON and BRICK tokens to Reddit coins. These coins are non-blockchain-based digital tokens that provide access to Reddit’s premium features and can also be purchased with US dollars and other fiat currencies.
Due to Reddit’s ability to be paid in premium currency, users are now willing to pay real money for MOON tokens that are traded speculatively on various token swaps.
Converting MOON to DAI
Converting MOON to DAI stablecoins requires several steps as the MOON token was created in Ethereum’s Rinkeby test network. According to market statistics, there are about 7,000 MOON holders.
While Reddit has always allowed free trade of MOON tokens, the site does not seem to aim for the MOON token to have real commercial value on exchanges. However, Reddit did this by benefiting these coins and creating demand for these tokens. Now each MOON token is traded for about 9 cents on decentralized exchanges.
It is not clear whether current prices are sustainable. If users choose to sell their MOON coins or eliminate their use for the Reddit coin, the value of MOON can drop rapidly. Moreover, the legal risk of distributing tokens of real monetary value may cause the social media site to slow down the cryptocurrency distribution program until the situation becomes clearer.