Reddit has grown over the years, with over 50 million daily users and 8 billion pageviews per month. The social media platform has always been popular among the cryptocurrency community, with many early adopters using it to find information and have discussions about Bitcoin (BTC) and other digital assets.
To carry out crypto transactions and trade NFTs, users need to have cryptocurrency wallets to store their digital assets. Following the launch of Reddit’s NFT Avatars, Redditors have created over 2.5 million new cryptocurrency wallets to take advantage of the new feature.
What was Reddit’s NFT venture?
In recent months, Reddit has shown an increased interest in non-fungible tokens (NFTs). The platform launched its own NFT market in July 2022, allowing users to buy, sell, and trade its NFT avatars. The social platform needs a user to open a Reddit Wallet to store and purchase tokens, facilitating in-app purchases. The NFTs are based on the platform’s ‘Snoo’ logo, giving them a wide range of designs and expressions. The new NFT feature was met with great excitement from the crypto community, with many users eager to get their hands on the unique avatars. At the moment, users can use NFTs as profile pictures, making them unique and collectible.
Since crypto wallets facilitate NFT transactions, Reddit users had to create new wallets or use existing ones to participate in the NFT market. Reports show that more than 2.5 million new crypto wallets were created by Reddit users in the month after the launch of the NFT market.
Reddit partnered with Polygon to mint about 40,000 NFT avatars which were available for purchase on the Reddit app. So far, the minted NFTs have been sold out, showing the high demand for the new feature.
The interest in NFTs is growing rapidly, and it’s likely that other social media platforms will launch their own NFT markets in the near future. Notably, some social platforms ventured into the NFT space before Reddit but did not see enough traction. For example, Twitter allowed NFT profile pictures for Twitter Blue subscribers in January, but this feature was not well received.
Would you require a Crypto Wallet to trade NFTs?
Crypto wallets can be better understood as digital wallets functioning as a gateway to send, store, and receive cryptocurrencies. They are similar to traditional wallets, but instead of holding fiat currency, they hold digital assets such as Bitcoin or Ethereum. Cryptocurrency transactions are irreversible, so it’s important to make sure that you’re sending funds to the correct wallet address. Crypto wallets provide a way to check that the address you’re sending to is correct and that the funds will arrive safely.
NFTs are built on blockchains, and to trade NFTs, you will need a crypto wallet compatible with NFT’s blockchain. For instance, if you want to buy an Ethereum-based NFT, there will be requirement for an Ethereum wallet. One should remember that crypto wallets don’t literally store cryptocurrencies. They instead hold private keys that are required to authorize your access to your funds.