Changpeng Zhao, the CEO of Binance, the largest crypto exchange in the world, was pleased to report that the move by Reddit had suddenly spurred 20 million new crypto users, a milestone for the still small market seeing such a massive expansion.
Still one of the largest websites in the world and probably the largest forum, Reddit has confirmed what was whispered about a month ago. The website is starting an experiment with cryptocurrency and while it is currently only a trial version, it could be one of the major developments for crypto this year.
The social news site has launched a new feature called Community Points, which is earned by submitting comments or high-quality content. The Community Points can be spent on premium features such as badges and emojis.
This isn’t new to Reddit in itself, but these new Community Points are essentially cryptocurrency tokens built on the Ethereum network.
Ethereum, which is the second largest crypto after Bitcoin, is a cryptocoin as well as a platform for decentralized apps. Vitalik Buterin’s company has a standard called ERC-20 that makes it easy to create new cryptocurrencies called tokens.
These have all the basic properties of Ethereum itself – they are almost impossible to counterfeit and they are fully controlled by their owners. This means that once the tokens are created and transferred to a user, even Reddit cannot take them back.
Best of all, Reddit has chosen two subforums, sections of its giant platform, to try this out first. The first sub-forum is the crypto forum itself, of course, and the second is the Fortnite forum. Both have about twenty million users.
For those who don’t know it, Fortnite (launched in 2017) is just about the most popular video game of the moment and has about 350 million players worldwide. It is a kind of shoot-em-up in different worlds where you can “buy” weapons and outfits for your players.
The game’s official social media accounts have millions of followers, whether on Facebook, Instagram or Twitter.
In response, Changpeng Zhao, or CZ, immediately spoke of “inevitable adoption” and many Twitter crypto followers followed with the words “mass adoption”. Although this is probably a little too early, we agree that it is yet another very big step in the right direction.
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