Reddit enters the NFT world

Reddit enters the NFT world with its collectibles called “Avatars”, which are designed by prestigious artists and run on the Polygon network.

The popular Reddit platform is dabbling in blockchain technology, and more precisely in NFTs. But this is not the first time Reddit is getting involved in non-fungible tokens; as happened recently with its original launch of collectible avatars based on its Snoo character , called CryptoSnoos in June 2021, which consisted of a limited release of 4 units. The most expensive of them was sold at auction for 175 ETH.

The internet platform Reddit is getting more and more into the NFT field with the announcement of its avatars in July 2022. They were released for sale in August and are having great success, making thousands of dollars in profits for the artists in charge of making the designs.

After the original sale through the platform has ended, the secondary sale of the NFTs launched by Reddit is growing daily, according to the transactions registered in OpenSea, one of the largest NFT marketplaces worldwide. Also, they are not being sold at the same initial price, but are being sold at much higher prices on this marketplace.

Also, beyond the fact that the first Reddit NFTs were to be obtained from the platform, Reddit has also given away tokenized avatars to its most active and influential users of the site.

Thus, the platform made an airdrop of avatars to users who have earned a certain amount of karma, this is a score that graphs their contributions to the communities on Reddit.

A series of independent artists are in charge of creating the avatars offered for sale, and they run on the Polygon network, an Ethereum scaling network that allows cheaper, faster and more efficient transactions than on Ethereum’s own mainnet (as we already know, one of the most criticized features of the Ethereum blockchain).

Reddit users will be able to take the choice between various avatars that are posted for sale in order to display them on their respective profiles, through the use of Vault, Reddit’s own cryptocurrency wallet. Purchases can even be made with a variety of cards accepted on the site.

Conventional NFTs are usually used for games, in the metaverse, among other uses. In the case of Reddit avatars, they are mainly used as profile pictures (as we have noted in another of our notes, regarding the case of Twitter, Instragram and Facebook).

These avatars are customizable, but only with respect to costumes and outfits that can be found on Reddit Avatar Builder.

Reddit has so far not used the NFT terminology, instead referring to them as “collectible avatars,” replicating tactics along the lines of those used by companies such as Coca-Cola and the 100 Thieves team.

These collectibles provide artists with a way to share their skills and share their work, in exchange for payment when the collectibles are sold on the enabled platforms and marketplaces.

Reddit keeps only 5% of the sales revenue, with the rest of the proceeds going to support the creator program, and cover the costs of mining and the fee that comes with the blockchain.

In addition, artists continue to benefit from secondary sales, receiving “royalties” even after their initial sale.

Written by Luciano Garriga (TW:@luchogarriga) for NFT Express