Reddit Unveils Its Own Marketplace for NFTs

Late last week, Reddit announced its plan to launch its own NFT avatar marketplace. This marketplace will allow users to purchase blockchain-based profile pictures for a fixed rate. Additionally, bought tokens can then be in the Reddit Avatar Builder. According to the site, it will release 90 designs — created by independent artists partnered with Reddit — but the NFTs during the early access are projected to be within the “tens of thousands.”

The avatars may be purchased using a crypto wallet. Once acquired, Reddit will give users licensing rights to use it on and off the website. Compared to the Bored Ape Yacht Club collection, however, the licensing rights will not be as extensive. Yuga Labs allows owners to create merchandise or even TV shows based on their bored apes.

Instead, owners who showcase their Reddit avatars will have a “glow-like effect” when commenting on various threads. The tokens will be stored and managed on Reddit’s own Vault, currently used by users to keep their blockchain-based community points. Avatars may then be traded on secondary marketplaces such as OpenSea or SuperRare.

This move forms part of the site’s efforts to empower artists on its platform. The collection features works from those who contributed to various subreddits as well as artists “from our networks who are bringing their work to Reddit for the first time,” explained Reddit. To mitigate the rampant issue of fraud surrounding NFTs, the site has partnered directly with a small group of artists. According to Reddit spokesperson Tim Rathschmidt, the site applies compliance checks and performs an “extensive, cross-functional review of all designs for their authenticity.”

Reddit only receives 5% from the sales of NFTs to cover the cost of minting and blockchain fees. The remaining percentage goes to the artists. This will allow their work to “live beyond the virtual walls of Reddit (and be compensated for future sales of their art),” Rathschmidt furthered. Minting of the avatars will be done through the Polygon blockchain.

This does not mark the site’s first dive into the NFT industry. Last year, Reddit launched its own collection called CryptoSnoos which features its mascot. It has, likewise, allowed users to use Ethereum-based NFTs as their profile pictures on the site. At the initial release, the avatars will only be available to members who join the r/CollectibleAvatars community subreddit. Prices are also fixed at $9.99, $24.99, $49.99, $74.99 or $99.99.

Sources: TechCrunch, The Verge