The value of Reddit MOON tokens, the community points for the r/cryptocurrency subreddit, jumped sharply this week amid new rules clarifying that the tokens can legally be traded.
MOON tokens, built on the Ethereum blockchain as ERC-20 tokens, are awarded to users based on their contributions and karma on the r/cryptocurrency subreddit. Users can earn, claim, and trade MOONs but Reddit’s previous terms did not explicitly allow trading of community points.
However,Reddit updated its terms of service this week to clarify that “verified virtual goods” like community points and collectible avatars can legally be bought, sold or traded.
The change sparked a surge in MOON trading volumes and prices. MOON prices jumped over 200% in 24 hours to over $0.50, according to CoinMarketCap, as users rushed to buy and sell tokens.
Trading volumes spiked 384% as MOON tokens were listed on major exchanges like Crypto.com, MEXC and Gate.io.
The price rally was further fueled by news that another major exchange, Kraken, was considering listing MOON tokens.
The new Reddit rules provide much-needed legal clarity for MOON tokens and their traders. By explicitly allowing the tokens to be traded, Reddit has essentially given them an official stamp of approval.
This news has attracted investors, sparking heavy trading and a massive price pump. But whether MOON tokens can sustain these gains remains uncertain given their relatively niche use case as community points within a single Reddit forum.
Still, the new Reddit policy is a positive step for MOON tokens that could help boost awareness, demand and long-term viability for the cryptocurrency project.
In summary,Reddit’s move to legally recognize the tradeability of community points like MOON tokens has fueled heavy trading, major exchange listings and a price pump. The new rules provide legitimacy and clarity that crypto projects need to truly flourish. But MOON’s long-term potential will ultimately hinge on whether use cases for the tokens can expand beyond Reddit tipping.
This article is based on the original news published on Bitcoinist.