Reddit Avatars Take NFT World By Storm, Onboard Millions to Web 3
Reddit has long been known as one of the most influential social media companies in the world. Founded in 2005 by roommates Alexis Ohanian and Steve Huffman, the company today has the sixth most trafficked website on the web, drawing 50 million users on a daily basis.
The social media giant has been referred to as the largest discussion forum on earth and involves registered users (known as “Redditors”) who submit content to the site in the form of links, text posts, images and videos. This content is then voted up or down by other members, and all posts are organized by topic into user-created boards called “subreddits”.
While the site draws less attention than its more “prestigious” competitors like Twitter and Facebook, recent events have shown Redditors’ power to influence the outside world. In 2016, for example, the famous subreddit r/The_Donald spawned thousands of discussions and internet memes around Donald Trump, serving as a powerful force in support of the future president.
In 2021, Redditors shook up the financial world when the stock trading subreddit r/wallstreetbets caused hundreds of thousands of members to invest in GameStop (GME) stock, sending the stock price skyrocketing and causing hedge fund Melvin Capital to shut down permanently.
Despite its high traffic and cultural appeal, Reddit recently launched its first major NFT launch in early September to expand its crypto footprint. While user adoption was initially slow, the past two weeks have seen Reddit NFTs become one of the top collections on OpenSea.
Initial rollout
Reddit first announced plans for its new NFT collection back Julyand although the company had published an earlier collection in summer 2021no one really knew what to expect.
The social network eventually released 90 NFT designs based on Snoo, the Reddit alien mascot, with different visual styles contributed by a variety of artists.
There are a few major differences between Reddit’s July 2021 NFT collection, called Cryptosnoos, and the recent NFT release.
- While Cryptosnoos was launched on Ethereum, the new avatars were launched on the Polygon blockchain.
- Cryptosnoos are unique 1/1 pieces, but avatars come in different editions ranging from as little as 100 unique pieces to as many as 1000+.
- Redditors can get a free NFT to create a polygon “vault” (wallet) for which Reddit, the company, will pay minting costs.
Currently there are 169 separate collections spanning two seasons. This amounts to a total of over 86,000 separate NFTs.
Some of the most valuable collections include The Senses, Foustlings and a Spooky Season collection by poieeeeeee.
This fan-made site offers a way to view each collection and switch between seasons one and two.
Web 3 strategy
What made Reddit’s recent approach to their avatar NFTs truly unique was that the company avoided all use of crypto terminology, did not mention the word “NFT” or crypto “wallet” in any of its announcements, and allowed users to purchase the pieces using of fiat currency.
Instead, the company marketed its NFTs as “blockchain-backed collectibles” and called the digital wallet users would need to store the chips the “Reddit Vault.”
Reddit’s strategy has paid off. Commentators the tribute the company’s “boring” jargon as a creative way to disarm Redditors who would be antagonistic to blockchain-based technology.
In addition, Reddit’s stated goal of the initiative, “to empower artists” on the site and give them the ability to receive royalty payments for all secondary sales, distanced the company from the obvious cash that characterized many NFT projects in 2021.
Massive adoption
Since the Reddit NFT marketplace launched in July, the number of Reddit Vault wallet users has skyrocketed. Current estimates put the number of vaults created at over 3 million, with approximately 2.5 million of those created specifically to purchase Reddit NFTs.
Reddit also accelerated adoption by sending free avatars to some of the site’s most devoted users, introducing many people to NFTs for the first time.
According to Dune analytics, cumulative sales volume topped $10 million throughout the project’s lifetime, with volume peaking on October 24 and falling steadily since that point.
The top sale so far has been a spooky seasonal avatar called “Midas Touch 1” which sold for 18 ETH, or about $24,150.
Future value
It doesn’t take a genius to see the potential of Reddit’s new avatars to bring millions of new users to Web3 and expand the reach of NFTs.
The company has over 430 million active users, and while BAYC and Cryptopunks are making headlines, they are limited in the number of participants they can have and will likely have to leverage Reddit’s network and tap into their massive user base at some point.
Other big brands like Disney (DIS), Netflix (NFLX), fashion houses like Burberry, Gucci, Balenciaga, or even celebrities with their enterprises will also try to collaborate with Reddit, not only to get their NFT projects or products in front larger audience, but also to test Web3 initiatives before developing a stand-alone product.
For example, a large company can partner with Reddit and test the market instead of spending time, effort and resources developing its web3 strategy. This means that those with Reddit avatars will likely be recipients of NFT drops and products from other brands in the future.
There is already talk of a free “Football World Cup” theme for the World Cup.
Unlike many existing NFT projects, Reddit has massive capital and manpower to create practically anything they want. Although the company lacks an integrated NFT marketplace, Reddit’s ambition to expand its Web3 footprint may soon make it a reality.
