Reddit generated $350 million in revenue last year and has about 50 million daily active users. With the launch of their Avatar NFTs, mass adoption of non-fungible tokens could accelerate significantly.
Introduction
A Reddit NFT is a type of avatar that can be purchased on Reddit's avatar marketplace. This marketplace offers redditors the opportunity to purchase blockchain-based images for a set amount of money, or rather, offered ... in fact, all avatars are currently sold out, with 1/1 items selling for 100+ eth each.
Reddit collaborated with many independent artists to create more than 90 designs, released in conjunction with the launch of the marketplace. However, the supply of avatars sold is in the tens of thousands.
Those who have purchased a limited edition on Reddit have obtained licensing rights to the token, which means they will have the ability to use the avatar on Reddit and beyond.
By purchasing one of these avatars, one has the ability to change its appearance with various items and traits, available in the avatar builder.
Why might Reddit NFT accelerate the mass adoption of NFTs?
At least 3 million new users have turned to cryptocurrencies, trying to snag one of Reddit's NFT Collectible Avatars.
Redditors have created more than 3 million Reddit Vault wallets to buy and trade NFT avatars, which are based on the character Snoo (the platform's icon and mascot) since the series was launched in July, according to chief product officer Pali Bhat.
Bhat participated in a panel at TechCrunch Disrupt in San Francisco last Tuesday (10/18/22) along with executives from Angel List and Calendly. Reddit has become an Internet giant since it was launched in 2005. It generated $350 million in revenue last year and has about 50 million daily active users, according to the company.
Reddit is not the first to integrate NFTs as profile pictures (also called PFPs), but it has certainly been one of the most popular launches.
Reddit's NFT ventures.
The success of Reddit's NFTs shows that there is an appetite for JPEGs after all.
Twitter, for example, launched NFT profile images in January for its Twitter Blue subscribers, attracting much criticism but not only that. Meta Platforms activated NFTs for Facebook and Instagram users last month, but it is struggling to overcome some problems, mainly due to skepticism and the collapse of retail interest in the metaverse and the crypto world.
In contrast, Reddit's onboarding of Web3 has been well appreciated by the digital world, both Web2 users and Web3 natives. On Twitter, the OG of the NFT and Web3 world @ABBBB_NFT, likened Reddit's NFTs to the Trojan horse that will lead to NFTs being adopted mainstream, greatly accelerating the process.
After releasing the collection of NFTs for PFP avatars in July, in August the site distributed free Polygon NFTs to power users, those who have earned a particularly high level of karma, the points awarded for contributions to the site's communities.
In the same month, the company announced that it would begin using Arbitrum Nova, a second, faster blockchain than Ethereum's popular layer 2 solution, Arbitrum, to scale its Ethereum-based Community Points.
Meanwhile, Reddit co-founder Alexis Ohanian, who left the company in 2018, has raised money for a cryptocurrency-focused fund at Seven Seven Six, his venture capital firm, we have talked about several times in our TradingView analysis.
The company has managed more than $750 million since its launch in 2020, according to CrunchBase.
The Web3 and NFT world continues to grow, investment rounds continue, and innovation is the order of the day, despite the bear market and declining retail interest. In case you are wondering, we at cryptohubble are extremely bullish 🐂, as we always are.
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