Reddit Inc, which has more than 430 million monthly active users, has announced it will be launching its own digital token.
The tokens—dubbed Community Points—could be used for purchases of goods, content and subscriptions on the site—and beyond. They could also be traded and will run on the Ethereum network.
This would mean that users of two Reddit subgroups familiar with digital coins, including the 1 million-member r/CryptoCurrency, will be able to earn tokens for things like posting a comment. The currency can be used to buy exclusive badges, to use animated emojis and to reply to Reddit comments using gifs.
With this move, Reddit is clearly seeking to pull ahead of Facebook Inc. and Telegram Messenger LLP. Telegram has scrapped plans to issue a token for use on its network, and Facebook’s Libra coins may not launch for months.
Crypto investors believe Reddit will introduce the currency and get people used to it, and then gradually build it into a valuable general exchange currency.
There is still a lot to be done before the token becomes a reality though. For starters, crypto exchanges would have to list the token.
Reddit, which is majority owned by Advanced Publications Inc., says the cryptocurrency is just a test, and that they “continuously run experiments to explore features that engage users”.