The ERC-20 tokens awarded to users, along with virtual goods like avatars can now be freely traded.

Popular news aggregation and discussion website Reddit has changed its terms of service, allowing users to earn, purchase or sell currencies and items that can be cryptographically verified.

The change in terms also explicitly outlined a clear separation in the definition of non-tokenized Web 2 virtual goods and tokenized Web 3 virtual goods, with a member of the Reddit product team disclosing plans to sunset the former.

I was surprised at the sudden increase yesterday so went searching for a reason. Turns out there are some interesting changes to Reddit TOS. Web2 centralized virtual goods like Coins & Awards are going away while Web3 Community Points can now be traded. https://t.co/px28rAo6ne

— Bobby Ong (@bobbyong) July 18, 2023

The price of Moons (MOON), an ERC-20 token associated with Reddit’s r/CryptoCurrency forum surged by more than 300% between July 16 and 18. Moons are tokens used to reward users who contribute to the r/CryptoCurrency subreddit with posts and comments.

“This is a major development by Reddit after the XRP case with the SEC. So this means that we’ll soon have a big update about RCP [Reddit Community Points] and I think they will officially release RCP’s after being in beta for 3 years,” wrote one Reddit user “ChemicalGeek” on the r/CryptoCurrency forum.

Although Moons are already tradeable through the Reddit app, it requires users to export their private keys from Vault, Reddit’s Ethereum-based wallets, and import it to a separate crypto wallet. Since the token is issued by Arbitrum Nova chain, the users would need to trade them on a compatible decentralized exchange (DEX), which is far from a straightforward trading experience.

Users speculated that the changes meant that the tokens could soon be listed on centralized exchanges, with some calling for crypto exchange Kraken to be the first one to do so. 

“We are always open to adding new digital assets to our exchange! However, as per our standard policy, Kraken makes no promises about the addition of new cryptocurrencies in general and we don’t reveal any details until shortly before launch,” wrote a Kraken representative on the forum.