Moons, “community points” for the popular R/CryptoCurrency subreddit, have gained over 100% in the past 24 hours. The eye-catching increase follows a recent update to the Reddit terms of service.
The update officially allows users to trade community points and other verified virtual assets on the social media. The price of MOONs jumped from $0.093 to $0.2 following the change to Reddit’s terms of service.
(Source: CoinMarketCap)
Reddit Updates Terms on Virtual Goods
Reddit’s updated terms of service distinguish between virtual assets on the platform. Before venturing into blockchain-based virtual assets, Reddit issued virtual coins and awards, which users could purchase with fiat and were prohibited from selling outside the social media site.
The restrictions also applied to community points like MOONs when they were released, even though smart blockchain users found a backdoor to trading the asset. However, the latest update to Reddit’s terms of service lifts restrictions on community points.
The updated terms of service also allow users to trade Collectible Avatars, which Reddit issues over the Polygon Network. The updated ToS reads:
When you acquire a Collectible Avatar, you become the owner of it. This means you can control, use, transfer, sell, or otherwise dispose of your Collectible Avatar.
Reddit Moons Enter Fresh Limelight?
First released in 2019, Moons is the official currency for the R/Cryptocurrency subreddit. The community has roughly 6.6 million users, with MOONs issued to users based on their participation in the group. MOONs were initially released on Ethereum’s Rinkeby testnet before migrating to Arbitrum Nova in August 2022.
Meanwhile, the latest update that lifts restrictions might unlock a new frontier for MOONs: exchange listings. A comment by Kraken’s support agent on a post uncovering Reddit’s updated ToS only added fuel to the speculation; it may have led to a recent price increase.
Users mainly trade MOONs on decentralized exchanges like Uniswap on the Arbitrum Nova network. However, the updated terms may open the way for more CEX listings.
