- Coinbase CEO Brian Armstrong says the aim of Reddit to build on Ethereum (ETH) is a game changer in terms of adoption.
- Armstrong proposes that other crypto projects should build on Reddit’s initiative and deliver real value to a community.
Reddit’s community project build on Ethereum has transcended because of its implications for crypto adoption. Coinbase’s CEO, Brian Armstrong, praised the initiative and called it a huge step forward for the adoption of cryptocurrencies.
The initiative began as a rumor, but after it materialized it has become a potential game-changer for the industry. The project consists of a rewards program and, as Armstrong said, is already implemented in some sub-reddits. Coinbase’s CEO summarized some of the features, limitations and functions of the project:
They do a great job from a legal POV of launching a utility coin, within clear boundaries.
* they are up front saying these are a way to “own a piece of your favorite community”
* users are rewarded for contributing
* can spend your points on community features, and send to/tip other users
* coins get you reputation (but rep can only be earned, not bought – key principle)
* user controlled wallet (although it would be nice to let people connect any wallet they are already using with WalletLink.org)
* burn model when coins are spent, generates demand
In addition, Armstorng believes that all crypto based projects involving the release of a token should copy the model that Reddit is using. This way, a project can deliver “real value” to a community. Coinbase’s CEO hopes that similar initiatives will multiply and is optimistic about the benefits that the communities involved in these projects will receive. Armstrong further outlines:
For all the people who asked me “where are the use cases?” over the years, this is what it looks like. Lots of hard work by individuals, integrating crypto into real products. Slow incremental improvement, moving the ball one yard every day – there is no big bang moment.
This is a huge deal for crypto – Reddit (top ten website in the U.S.) has launched their cryptocurrency integration: https://t.co/ziLPJZANO4
— Brian Armstrong (@brian_armstrong) May 14, 2020
Integration of Reddit with Ethereum
As reported by CNF, Reddit launched a presentation on their website giving more details on its project called “Community Points”. The presentation is called “A New Frontier” and shows how Ethereum will be used to introduce special incentives that promote the creation of quality content. The points can be claimed by users and used to access exclusive features of the platform. Among these features, users will be able to access badges, individual GIFs and more things to come. The project still is in its beta phase.
At the time of publication, ETH trades at $199.96 and has moved sideways (-0.74%) in the last 24 hours.
✔️ Buy 15 cryptocurrencies
**= Risk warning: 75% of retail CFD accounts lose money when trading CFDs from this provider.