4 - 7 minute read
Social media platform Reddit recently released the third generation of its non-fungible token (NFT) collection. With over 100 artists contributing thousands of tokens, demand for the tokens was so high that Reddit’s shop crashed shortly after the release. Some users complained that the team didn’t implement measures to prevent bots from snatching up the tokens.
The collection, called “future realities,” features “Snoo” collectible avatars – the character behind the platform’s logo. The NFTs are available for purchase with fiat currency and come with a degree of interoperability. Artists featured in the collection earn royalties on their work. According to Reddit, the avatars offer ownership to the purchaser, and artists benefit from future sales.
One of the artists featured in the collection is “Nyan Cat” meme creator Chris Torres, whose work was popular on OpenSea. Data from blockchain analytics platform Dune Analytics shows that the Gen3 collection has about $585,000 in sales volume with over 7.4 million unique holders across all Reddit-based collections.
🚨#RedditCollectibles fans, the wait is over! Gen 3 is officially available with limited-edition designs from over 100 different artists. Jump into the next dimension and get yours now.🚨 pic.twitter.com/QcCSAUs8rE
— Reddit (@Reddit) April 11, 2023
Reddit’s push into the NFT market began in July when it launched a marketplace on digital wallet Vault for its collectible “Snoo” avatars. By October, over 2.5 million users had opened wallets on the platform, and the collections pumped to volumes comparable to NFT giant Yuga Labs’ flagship Bored Ape Yacht Club collection.
“Having collectible Avatars on the blockchain gives you, the purchaser, ownership over your Avatar, no matter where you want to take it, on or off Reddit,” said Reddit. “It also provides artists a way to have their work live beyond the virtual walls of Reddit, and collect royalties on future sales.”
The growing demand for Reddit’s collectible avatars is a testament to the rapid growth of the NFT market. The future looks brighter for the platform and its users with more collaborations and partnerships in the pipeline. According to a recent article from Forbes, the NFT market is set to grow exponentially, with increased interest from traditional investors who are beginning to see the value of this asset type.
Thank you to everybody that collected my avatar today, all 1,000 have been claimed. My goal for this piece was to offer a fun new twist of my artwork that can reach a whole new audience and feel that plan succeeded. Excited to announce it’s currently trending 8th on @opensea 🤯! pic.twitter.com/RRIdXVnvyy
— ☆Chris☆ (@PRguitarman) April 11, 2023
“The world is increasingly digital, and the rise of NFTs is just proof of that. As industry insiders have predicted, we’re going to see exponential growth in the NFT market in the coming years,” says Susan Hardy, Chief Investment Officer at Fortuna Investments.
Traders looking to invest in the NFT market should consider diversifying their portfolio by investing in different sectors of the NFT marketplace. While demand for NFTs is high, traders should approach investments in NFTs with caution. Investing in NFTs should only be done after thorough research and analysis of the asset.
The glorious experience of trying to buy a gen3 @reddit NFT (Collectible Avatar) in one picture.
— W3nzel.eth (@thisiswenzel) April 11, 2023
That was a proper sh*itshow. Apparently, bots bought 300k avatars in under 3 seconds.
That's how you make your average users happy! 💀
Still, thanks for the alpha @CoinGurruu 🫶 pic.twitter.com/rbkFYCmLik
The Bottom Line
The demand for Reddit’s Gen3 collection of NFTs highlights the growing interest in this asset class. As the NFT market continues to grow, traders should diversify their portfolio and approach NFT investment with caution. Despite the risks involved, the NFT market is expected to grow exponentially in the coming years, making it an attractive opportunity for savvy investors.
