Reddit tokens: Two cryptocurrencies associated with Reddit communities saw a remarkable increase of more than 15% within a 24-hour period.
Investors showed keen interest in Donut (DONUT) and Moons (MOONS) as Reddit, the popular social media platform, finally launched its much-anticipated initial public offering (IPO). This launch led to a surge in the value of these tokens, with both experiencing double-digit price hikes on March 21.
DONUT, an ERC-20 token issued on the Ethereum (ETH) blockchain by the ethtrader forum, is distributed as monthly rewards to participants for their contributions to the community. Eligibility for these rewards is determined by the number of upvotes received on published content. According to CoinMarketCap, DONUT saw an increase of over 28% following the news of Reddit’s IPO.
Admins of Reddit’s largest cryptocurrency community, CryptoCurrency, introduced the MOONS token to incentivize increased activity among its members. Similar to DONUT, MOONS are distributed monthly based on the karma points accumulated by users. MOONS also experienced a significant spike of at least 18% within 24 hours.
The Reddit IPO launch attracted considerable attention, with Reuters reporting that it debuted at a price 38% higher than its expected value of $34 per share, primarily due to oversubscription. This strong debut signals high demand for the social network’s stock.
In a filing with the U.S. Securities and Exchange Commission (SEC) on February 22, Reddit disclosed that it held various cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Polygon (MATIC), on its balance sheet.
The company stated that it acquired these assets using excess cash reserves to explore blockchain and crypto technologies. Additionally, Reddit mentioned that ETH and MATIC were specifically purchased to facilitate certain goods and services expenditures.
