MOON, Reddit’s native coin, and its unique decentralization update’s price increase and market speculations are examined.
The native cryptocurrency of social media platform Reddit, MOON, saw a remarkable price surge last week that greatly alarmed the cryptocurrency community. The coin’s worth was $0.056 on Monday, November 13. However, an unforeseen development raised its price to $0.44 the next day, and it eventually returned to the $0.2 region.
Notably, an update last Tuesday will simultaneously burn 30% of the cryptographic resource’s whole supply and render the MOON token entirely decentralized and unique to Reddit stakeholders.
MOON: Reddit’s social media cryptocurrency
MOON is a cryptocurrency that is a part of the Arbitrum Nova blockchain and is used on the r/Cryptocurrency forum of the Reddit social media network.
The latter acts as a virtual forum where the primary conversations on crypto-related topics are held and where news relevant to this field is released.
Reddit administrators first introduced the MOON cryptocurrency in 2020 as an ERC-20 token on the Ethereum network as a part of an incentive scheme on the same platform. The program has since been suspended.
Up until a few weeks ago, all subreddit users who posted or contributed worthwhile content and attracted a lot of impressions and community participation were given the cryptocurrency every 28 days.
This system proved to be highly effective in the early days of MOON, as group members were rewarded for daily sharing of insightful analysis and information with the opportunity to earn tokens that could be exchanged for Bitcoin or other cryptocurrencies.
The coin you buy today can later be used for a variety of things, such buying time for a banner advertisement on r/Cryptocurrency or accessing premium services on social media.
They can be specifically used to display reputation within the subreddit, enable features like GIFs and badges in comments with a paid subscription, and weight votes in polls.
Because of the decentralized currency that plays an economic role, all of this results in a dynamic ecosystem that is self-incentivizing and changing.
Furthermore, MOON performs a governance function by enabling its holders can cast votes on proposals that are discussed within the Reddit cryptocurrency community.
Members of the subreddit make proposals, which mostly concern the group of cryptocurrency enthusiasts’ strategic direction. They can also contain significant upgrades to MOON, such as adjustments to the distribution rate or the addition of new features.
MOON +236% over the previous week: current events and token price analysis
The cryptocurrency MOON on Reddit has gained a lot of attention lately due to its significant price increase within the last week.
It all began last Tuesday when the administrators of the subreddit revealed a significant update for the cryptocurrency with the goal of bringing the asset’s value back after it crashed badly in October as a result of the company’s decision to terminate the “Community Points” program permanently.
More specifically, considering the bad news that affected the entire ecosystem, MOON lost 85% of its value in a single day on October 17.
On Tuesday, October 14, the cryptocurrency surprisingly rose to +115%, reclaiming all of the previous month’s losses. This is because the Reddit team has announced that MOON will be a subreddit-only resource.
In reality, the project managers voluntarily gave up control over the coin’s distribution contract, which burned 34% of the coin’s supply and halted resource production.
The token supply is now 83 million, down from 126 million, although more burns are planned. The absence of the incentive mechanism that ensured a flow of meaningful information in the subreddit, giving the MOON token a sense of existence, changes the resource from inflationary to deflationary.
From a speculative standpoint, prices drifted sideways after the mid-October collapse, with some signs of a month-long recovery. On Monday, November 13, MOON’s value rose 95%, perhaps due to group insiders making massive purchases before the revelation.
Big figures
On Tuesday, the 14th, prices rose 460% to their greatest point, generating $22 million in Kraken MOON-USD market activity.
CoinMarketCap statistics shows these are big figures for a $19 million cryptocurrency.
The day ended with a long rally that finished the candle at $0.22, almost at the pre-dump level of a month ago.
All in all, MOON rose 236% this week, eliciting strong feelings among token holders and bringing its price to $0.17.
Reddit’s cryptocurrency must now maintain its positive trajectory in order to surpass the $0.25 threshold.
Conversely, a bearish breach of $0.15 might reverse the entire upward pressure and return prices to their yearly lows.
Because of the high volatility in this market, trading MOON is extremely risky. As such, traders should exercise extreme caution.
