Reddit Adding Cryptocurrency Rewards: Good Or Bad?

in Threespeak2 months ago

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Reddit announced that it is going to create a reward system. This is being done with a couple sub-Reddits to start.

In this video I present some thoughts on whether this is good or bad.

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I think it's a positive for the industry too. Reddit is nothing like what HIVE has actually evolved into. Reddit will remain heavily moderated and closed, while the whole layer zero aspect of HIVE will see it continue to open up.

Reddit is so heavily moderated and I laugh with friends who work in digital marketing that have been banned there on so many different accounts for simply trying to share links that for some reason weren't allowed.

My questions are why is Reddit allowed to do this, but Telegram/Facebook wasn't? Is it just because they're integrating an already established coin in ETH, and not creating their own?
Posted Using LeoFinance

Telegram sold theirs. It was a way to raise funds which makes it a security (in the SEC's eyes) and thus, open to lawsuit. If Telegram gave the tokens away, then it would have gone through.

As for Libra, it isnt the SEC that is stopping them. That is a political situation, not regulatory. The Libra is a threat to the USD (and other fiat currencies) so politicians are stepping in.

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Hi, I also wrote a post on this event. I believe it is both a threat and opportunity for Hive. Hive will have to learn to seize this opportunity though if this Reddit's move brings more cryptocurrency adoption.

In terms of maturity, I think the features on Hive is certainly much strong than what Reddit is currently implementing. However, given Reddit's user base and financial power. I won't be surprised that this feature evolves very quickly into something more advance.

Reddits challenge is that it is very specialized. Even if it did want to morph into something else, it is a centralized entity. That would all be done inhouse. It is not going to open source things and let anyone hang an application on there.

It is true about the user base and money they have. That is very powerful. However, I think it is constrained outside of what it does best, operate as a platform of links.

We will see how long it takes them to roll out cryptocurrency even to all of the reddits it presently has.

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They released inflation and supply in the cryptocurrency subreddit. It's in the main announcement.

It will be good for Crypto users as a whole, might be a good point to promote Hive there.

There was a Steem reddit, I am not sure if there was a Hive on.

I think @acidyo was behind that. He might be the one to check in with.

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Let's see if they aren't forced to quit by the dictator leaders of the USA, just like it happened to Telegram. 🤪

The fact that it isnt an ICO and Reddit isnt using it to raise money means they are clear of the SEC.

Telegram was sued for selling an unregulated security; Reddit is selling anything.

That is the clear way around the SEC for the moment. Of course, it stifles fundraising.

Posted Using LeoFinance

I think the SMT protocol should be rolled out as soon as possible. It's superior tech compared to Ethereum for this purpose. To get really large crowds using SMTs could really ramp up the usage of RCs, which would push up the price of HIVE organically.

I agree with that.

Think about it this way: Reddit is determining which subreddits (communities) get tokens. With SMTs, anyone can start a community and tokenize it immediately.

Communities were a great addition yet they are only half the equation. The other is the ability to create a token, not only on Hive front ends but into one's existing website.

Posted Using LeoFinance

That's true. And if there are problems with SMTs that will further delay their introduction, then Hive-Engine could be used instead. That's something to think about. We have all these nearly worthless coins (except for precious few) on Hive-Engine not backed up by communities of any significant size. But I think the protocol is proven and ready for adoption at least on a small scale.

To me, the one that is making the most progress on HE along with a community is Leofinance. It is putting out updates that create offerings for people to use along with a token that is being traded.

It would be nice to have 50 examples like that.

Posted Using LeoFinance

Yet, the price of LEO is only $0.01762 and the market cap is $72k. Its daily volume is around $100. The LeoFinance community is making progress but to make any real progress financially speaking, the LEO token has to be listed on an exchange other than Steem-Engine.

I know you first have to develop all the basic tools and the DEX is wonderful. But the token has to be listed on external exchanges before any serious amount of capital can flow into the system. I think LEO is actually one of the best positioned SE tokens for that.

This would seem to me to expand overall crypto adoption as there are many many people on Reddit. I do not know though.

Reddit is an interesting place if they implement crypto in anything that would be huge as mainstream social media are more likely to bring mass adoption while telegram much awaited project is no longer gonna exist this can be the next big thing

I would say it's good for the crypto ecosystem but probably bad for other tipping platforms mainly for coins like BAT which is mainly used for tipping currently. But come to think of it, they would have enabled the use of their vault (or atleast given users the option to enable) for about 330 million users. That is HUGE wrt adoption!