As the news spread that there is a way to turn Reddit crypto points into altcoins, and further into cash, Moon tokens have been the hottest topic on a subreddit with over a million members – touching on topics such as spiking price, low number of holders with top 3 holding 45% of tokens, and the subreddit as a yield farming platform.
r/CryptoCurrency, with 1.1m members, is abuzz this week with a variety of Moon discussions, many of which stem from the spreading news of and guides on turning Moons into actual, exchangeable crypto.
As reported in May, Reddit confirmed their point system would be built on top of Ethereum (ETH), stating that the points can be customized by each community, which will then give them out as a reward for “quality” posts and comments. Two customized versions have been created on the FortNiteBR and CryptoCurrency subreddits, called “Bricks” and “Moons,” respectively.
These exist on the testnet, and not Ethereum’s mainnet, so even though they are ERC-20 tokens, meaning that they run on the Ethereum blockchain, they can’t be swapped for other coins and consequently to fiat if one would want to do so.
However, people have now started using a method created by Ethereum developer Austin Griffith, in which Moons can be moved from the Ethereum Rinkeby testnet to xDai, which is an Ethereum sidechain.
A user can utilise Griffith’s xMoon Exchange, send Moons from the Reddit Vault to their MetaMask, an ETH wallet and Web 3.0 browser, account, then use the bridge between Moons, xMoons (Moons on sidechain xDAI), and the testnet. In the process, real DAI is turned into xDAI and used to exchange back and forth with xMoon.
The xMoons can be sold on the decentralized exchange Honeyswap for other crypto, which can then be sold for fiat on another exchange, said the users who have been providing guides, as well as several detailed videos with step-by-step instructions.
In the meantime, it seems that this development might have had an impact on xMoon’s price. Per Honeyswap, the price spiked 2,085% on September 26 compared to the day before, to USD 0.35. Smaller spikes were seen in the following two days, but the price has been steadily dropping since, to the current (USD 14:49) USD 0.07738.
Furthermore, as of the time of writing, there have been 1,015 transactions in the last 24 hours, which is a drop of 31% compared to the same period before. Therefore, the trading volume also dropped today by 41% to nearly USD 233,700.
Meanwhile, users have pointed out that out of the said 1.1m members, only 7,739 addresses hold Moons (or 7,746 per DappRadar).
Stats from the Rinkby contract show that the top 100 holders together own almost 69% of all Moons. This is particularly true for the top three holders, owning 18.5%, 18%, and 8%, respectively. The rest is more evenly distributed in comparison.
Based on Reddit users’ comments, it seems that many have tried to exchange their Moons. “Don’t spend all day posting memes on r/CryptoCurrency they said. It’s a waste of time they said. I could have retired off those memes,” joked one user. Others were more focused on the fees that come with the experience, with some arguing that the earnings from more than 1,000 Moons would be worth paying the fees, and others saying that “everything greater than [USD] 10 is [definitely] worth it if [you] want to do it. Fees are just a few dollars.”
But the addition of monetary gain to the subreddit has angered some, like ‘ShotBot,’ who claimed that “Moons have turned /r/Cryptocurrency into a yield farming platform,” and that the moderators “need to ban karma farmers and enforce a higher posting standards.” The discussion has led many to compare the subreddit to content sharing platform Steemit which had found itself in hot mess pretty fast earlier this year.
Meanwhile, Reddit recently announced their new feature that allows Moons to be converted “into r/CryptoCurrency exclusive Coins.” Per the post, “these Coins work just like any other Reddit Coins, except that they can only be used on r/CryptoCurrency.”
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