Reddit does what almost no other company has been able to do.
They create a space for people to connect and share information. In the process, they’ve built one of the most popular sites on the internet. Now, they’re cashing in on the recent craze surrounding non-fungible tokens (NFTs).
In case you’re not familiar, NFTs are digital assets that are unique and cannot be replicated. They’re often used to represent things like art, music, or other digital content. Some people think that NFTs are overhyped and that their value is inflated. Others believe that they’re the future of digital ownership and will change the way we interact with the internet.
Regardless of where you stand on the issue, there’s no denying that NFTs are generating a lot of interest—and a lot of money. Reddit’s NFT marketplace is thriving with what the company has called “Digital Collectible Avatars” which launched just a few weeks ago. The collectibles have already generated more than $10 million in sales as of October 31.
The most popular items on the site include an animated version of Reddit co-founder Alexis Ohanian’s cat, which sold for $180,000, and an “I am rich” badge that went for $16,000.
But it’s not just the big sellers that are driving up the numbers. There have been more than 1.5 million transactions on the site so far, with the average sale totaling $32.
The avatars were initially made available to users of the invite-only subreddit r/CollectibleAvatars. Reddit offered 86,000 NFTs valued between $10 and $100 in the initial wave, letting users pay in cryptocurrency or fiat using debit or credit cards.
The trading volume on the Reddit NFT platform increased by 168% to $5.9 million in the past week, as per CryptoSlam statistics. The quick increase in Reddit NFT sales appears to have also increased NFT traffic on the Polygon blockchain, with the Layer 2 scaling protocol increasing Polygon NFT activities on OpenSea to $14.59 million in October.
This is just the latest example of a major company embracing NFTs. In recent months, we’ve seen everyone from Jack Dorsey (the CEO of Twitter) to Kings of Leon (the Grammy-winning rock band) get in on the action. The Chief Product Officer of Reddit, Pali Bihat stated that in the past week more than 3 million users of Reddit have created new Polygon wallets and of that 3 million 2.5 million were used to purchase the avatars. The avatars cost between $10 and $100.
With such a high demand for NFTs, it’s no wonder that so many companies are trying to get in on the action. It remains to be seen whether
This is a far cry from the 1.8 million enrolled users on OpenSea. It would appear that Reddit Reddit has succeeded in getting a large number of people interested in NFTs——and generating a lot of revenue in the process. It remains to be seen whether or not not the NFT craze will last, but for now, it’s clear that Reddit Reddit is surely capitalizing on the hype. With $ $10 million in sales already, it’s safe to say that they’re doing quite well well.
The Reddit Avatars are just the latest way that the company is looking to generate revenue. In September, they launched a new subscription service called Reddit Premium which gives users access to exclusive content and features for $5.99 per month. With more than 430 million monthly active users, Reddit is one of the most popular sites on the internet. If they can continue to capitalize on trends like NFTs, there’s no limit to the number of profits they can earn.
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