The price of subreddit community tokens Moon and Brick soared last week amid a massive increase in trading volume. Since then, however, the excitement seems to have subsided with the price of each token down by more than 20% on Monday.
The Moon community token for Reddit's r/CryptoCurrency community, which boasts more than 6.5 million members, skyrocketed to nearly $0.58 on July 19 from roughly $0.09 on July 16 as trading platform Crypto.com announced it had listed the token. Trading volume also soared, reaching about $3 million on Wednesday.
Millions of Reddit NFT avatars have been minted since the platform made them available, and the collectibles have been acquired by more than 14 million "unique holders" while generating more than $32 million in sales, according to a Dune analytics dashboard.
Fortnite community token fizzles
The Fortnite subreddit community token called Brick, which according to Crypto.com "is distributed as a reward" to those who contribute to r/Fortnite, also jumped in price last week, rising precipitously to about $0.10 on July 19 from $0.01 on July 17, according to CoinGecko.
Crypto.com published a note early Monday commenting on the "surge" both tokens experienced in recent days. But volume and price for both tokens has crumbled over the past 24 hours.
Moon was trading at $0.33 at 12:19 p.m. ET, while Brick which was just under $0.05, according to CoinGecko data.
Volume for Moon shrank from more than $1 million on July 23 to about $200,000 so far on Monday. In the case of Brick, volume declined from about $210,000 on July 23 to just $26,000 so far on Monday.
"Markets speculated that the recent change in Reddit’s Terms of Service ... was likely the catalyst for the price increases," said Crypto.com on Monday. Reddit appeared to change its Terms of Service on July 16 to say that users could trade community tokens and avatars.
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