Source: TierneyMJ – Shutterstock
- The former chief marketing strategist of Ripple, Cory Johnson, describes that XRP is better suited as Ethereum for Reddit’s new community project.
- The new project is meeting with great interest, especially among Fortnite fans.
As Crypto News Flash already reported, Reddit started a new community loyalty point system last Tuesday that launches token on the Ethereum Blockchain to distribute them to its users. The new project has been well-received by the community and is seen by some experts as a game changer for the adaptation of ETH and cryptocurrencies in general. The former chief marketing strategist of Ripple, Cory Johnson, describes that Reddit should focus on XRP instead of ETH.
Reddit should use XRP instead of ETH for tokenization
Users can earn “community points” for creating quality content, which can be used for special features such as special badges, custom GIFs, and other premium features. Two new ERC20 tokens of Reddit “MOON” and “BRICK” tokens will be issued for the distribution of the community points.
These can be stored in the Reddit Vault, Reddit’s own wallet in the Android and iOS app. The tokens can still be moved to any other ETH wallet that supports ERC20 tokens. However, it is not yet clear whether exchanges such as Binance or Coinbase will support the new tokens and include them in their portfolio.
The project is in the beta phase and will initially be tested in only two subreddits r/Cryptocurrency and r/FortNiteBR. Former ripple marketing strategist Cory Johnson describes on Twitter that XRP is better suited to the project than ETH because it offers significantly lower transaction costs and near real-time transaction processing.
In the first test phase there were some transaction delays in the ETH network, which also led to discussions within the community about possible alternatives.
— Cory Johnson (@CoryTV) May 18, 2020
Johnson sees great potential in this project, which will strongly promote the adaptation, but in his opinion there are also risks. Similar to Twitter, there is the possibility that controversial topics will be discussed and so-called trolls will use the attention to spread fake news or advertise unwanted projects.
The project is well accepted by users of both subreddits, but statistics from dApp Radar show that Fortnite fans (members of the subreddit r/FortNiteBR) with 10,281 wallets registered significantly more wallets than users of the crypto-subreddit (r/CryptoCurrency) with only 2,397 wallets. However, it should be noted that Fortnite is ranked 28th among the most active subdreddits and the crypto-subreddit is not even in the top 300.
Reddit Community founds DAO
Some Reddit users have already announced the launch of a decentralised autonomous organisation (DAO) to control the future use of the collected community points and to make democratic decisions on which other objectives the budget should be used for. According to the initiator of the proposal, this can become a very powerful tool due to the large user base of Reddit:
Since MOONS and BRICKS are now available to Reddit users, these tokens can be used elsewhere in the entire Ethereum ecosystem. In the Ethereum space, we have used so-called DAOs to collaborate and coordinate as communities, and we believe this would be really powerful for Reddit.
Last updated on