Reddit’s MOON cryptocurrency has finally get real-world value and now the users can trade it for DAI via third-party exchanges with prices ranging from 5 to 10 cents as we are reading in the altcoin news today.
The secondary market emerged around Reddit’s MOON cryptocurrency as the company decided to cash out the tokens for Reddit coins. The platform introduced a way to trade its MOON token for Reddit coins giving the token real-world value. It’s still not clear whether the token’s value is sustainable.
After introducing two community-specific cryptocurrencies Reddit will now give its users a way to spend or to cash out their tokens. Reddit introduced an idea to distribute MOON and BRICK tokens to its crypto and Fortnite communities. There were no practical uses for these tokens until now as the coins are only used to manage badges and reputation scores but none of them had monetary value. However, Reddit’s MOON cryptocurrency can now be turned into a Reddit coin along with BRICK as they are non-blockchain-based digital tokens that provide access to the premium features of Reddit and can also be purchased with US Dollars or other fiat currencies.
Because of the redeemability for the premium currency of the platform, the users are now willing to pay money for the MOON token which is being traded on various token swaps. Converting MOON to DAI stablecoins requires a few steps because that token was built on the ETH Rinkeby testnet. There are about 7000 MOON holders according to the market statistics.
Reddit has always allowed for free trading of the tokens but it seems that the site didn’t intend on the MOON token to have real value on the exchanges. It has done so by giving the utility of the coin and creating the demand for these tokens. Now each moon token is trading at about 9 cents on DEX. It is not clear still whether the current prices are sustainable so if users choose to sell-off their coins, or if the platform eliminates the uses for the coin, MOON‘s value could collapse. Also, there’s regulatory risks that come with distributing tokens that have a real monetary value which could case the social media site to slow down with the crypto distribution schedule until the situation gets clear.
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