Reddit, a popular social media platform, is quite well known in the crypto world. Last year, the company launched its own non-fungible tokens (NFTs), which were well received by the large number of users of the platform. Two Reddit communities, also called subreddits, also have their own cryptocurrency. These tokens have now been thrust into the limelight by giant US crypto exchange Kraken.
Reddit crypto tokens explode
The subreddits r/cryptocurrency and r/FortNiteBR have had their own crypto token since 2020. MOON was launched for r/cryptocurrency and BRICK came to life for r/FortNiteBR. Both tokens are awarded to Reddit users, known as “Redditors,” based on their involvement in the respective online community.
Members can collect tokens by posting content and leaving comments. Also, users can tip others in the respective cryptocurrency.
Since yesterday Both tokens can be traded on Kraken. MOON and BRICK deposits and withdrawals are also supported by the exchange launched in 2011. As a direct result of the stock market listing, prices rose very quickly within a very short time. In fact, MOON is up about 52 percent and BRICK is up about 133 percent.
MOON was also listed on Crypto.com last month. In fact, the value of the altcoin rose by around 420 percent at the time.
Risks associated with these types of altcoins
However, it is important to mention that these are cryptocoins with a very small market capitalization. The combined value of MOON and BRICK is $38.58 million and $4.11 million, respectively. MOON is ranked 2,298 on CoinMarketCap and BRICK is ranked 3,062. The distance to the big ones from the crypto country is therefore enormous. The volatility on this type of coins is obviously much higher than Bitcoin (BTC), Ethereum (ETH) or other popular coins.
With projects like this one often only hears the enormous upward movements in prices, but it could just as well go in the other direction. For example, after listing on Crypto.com, MOON lost about half of its value within two weeks.