Key learning points
- Reddit Collectible Avatars have taken the social media site by storm.
- By never explicitly mentioning NFTs or even cryptocurrency, Reddit has managed to get millions of users on board.
- Reddit seems to have found a winning formula that is likely to grab the attention of others.
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While some Reddit Collectible Avatars were available for purchase when the NFTs launched in July, many have also been distributed for free to the social media site’s most active users.
What Are Reddit Collectable Avatars?
NFTs are reaching a new audience, this time through Reddit.
The social media giant’s Reddit Collectible Avatars collections stole the crypto spotlight this week, accumulating a combined trading volume of $2.2 million over the past 24 hours on leading NFT marketplace OpenSea.
After an initial release earlier this year in July, the avatar NFTs received little attention from Reddit users or the wider crypto community. However, in recent weeks, many active Reddit users have started receiving free collectable avatars. This, coupled with several recently released Halloween-themed collections, has increased interest in the avatars.
Any Reddit Collectible Avatar, created on the Polygon blockchain, can be used on the social media site as a user’s profile picture. Avatars also offer additional benefits, such as the ability to mix and match clothes with other avatars and a glow effect on users’ comments.
While some Reddit avatar collections, such as “The Singularity,” have inventories in the millions, others are scarcer. This has caused much-wanted avatars to increase in value as interest in the NFTs has skyrocketed this week. Currently, the highest value avatars appear to be from the Sys32 template “Spooky Season” collection. Samples of this small group of 210 NFTs have risen to a floor price of 2.8 ETH, about $3,700.
Another Spooky Season collection from poieeeee currently holds the top spot for the most traded NFT collection on OpenSea over the past day. Since its launch on October 24, the 1,800 NFT strong poieeeyee collection has reached over $1 million trading volume. It’s not just these Halloween-themed examples that are finding success, though. The Fights collection, part of the first Reddit Avatar series released in July, has more than quintupled in value this week. On October 22, a Foustlings avatar is said to have set collectors back 0.31 ETH. Now the same NFTs are regularly selling for as much as 1.65 ETH, a 432% increase in the floor price.
While many in the Reddit community are raving about their newly received and often valuable avatars, die-hard NFT fans seem to have missed the excitement. The Reddit Collectible Avatars have been known in NFT circles since their July launch, but have been largely ignored. Now they have skyrocketed in value, leading many to wonder why these Reddit avatars have attracted so much attention.
Why are Reddit avatars so popular?
Reddit’s NFTs have succeeded for many of the same reasons as other avatar projects, such as Bored Ape Yacht Club or CryptoPunks.
On Reddit, the avatars are easily visible and users can showcase their wealth and customize how other posters see them. Giving users the ability to customize how they look online in exchange for a fee isn’t unique to the crypto space or Reddit. For years, popular online games such as Counter-Strike, League of Legends, and Overwatch have sold cosmetic items or character “skins” to players through in-game purchases. In this sense, Reddit avatars are familiar to users who are willing to pay money for cosmetic items elsewhere on the internet.
However, there are other reasons why Reddit avatars have seen success. The social media site already has an established user base in the millions, which means its collectible avatars will appeal to more people than the average NFT collection. In comparison, many “crypto-native” NFT collections try to build a community around their avatars from scratch, and while some succeed, many more fail.
It’s also worth noting that Reddit Collectible Avatars have been purposefully marketed without using crypto jargon. Crypto wallets have been replaced by ‘Reddit Vaults’ and the term NFT has been replaced by ‘Digital Collectible’. While it may seem like an insignificant change to those accustomed to using crypto and trading NFTs, to the uninitiated it has made a huge difference in terms of accessibility.
In addition, the specific decision not to call the Reddit avatars “NFTs” helped with their adoption. NFT has become a dirty word in many art and gaming communities in recent months. The term is infused with various negative connotations ranging from excessive energy consumption to scams and even money laundering. On the other hand, “Digital Collectible” is easier to understand, doesn’t come with the baggage that “NFT” does, and has likely aided adoption by users who were previously skeptical of blockchain technology.
While all of these points may be true, some have taken a more cynical approach to the Reddit avatar hype. Coinshares CSO and Crypto Twitter personality who has Meltem Demirors posited that the popularity of Reddit avatars among the non-crypto community can be explained simply by the status and value they confer. “Reddit NFTs prove that everyone likes to be an insider on something new that gives them status and makes money,” she wrote. “ppl actually don’t hate NFTs or crypto, they hate that people who aren’t them get status and wealth from them because they think they deserve it more.”
Love them or hate them, the Reddit Collectible Avatar collections prove that anything can be successful when marketed properly. Reddit has found a winning formula, turning a poorly understood technology into something even people with no prior knowledge of crypto can enjoy and participate in. Other companies, both in the crypto space and beyond, will likely be watching closely so they can try Reddit’s success.
Disclosure: At the time of writing this piece, the author owned ETH, BTC, and several other digital assets.