Two cryptocurrencies affiliated with Reddit communities increased more than 15% in 24 hours.
Investors speculated on Donut (DONUT) and Moons (MOONS) as the social media platform launched its long-awaited initial public offering (IPO), causing the tokens to see double-digit price increases on March 21.
DONUT is an ERC-20 token issued on Ethereum (ETH) by the ethtrader forum. Participants receive the crypto as monthly rewards for contribution to the community. Eligibility depends on upvotes gathered by published content. Per CoinMarketCap, the token gained over 28% on Reddit’s IPO news.
Admins on Reddit’s largest crypto community, CryptoCurrency, created the MOONS tokens to incentivize further activity among members. The token is also distributed every month according to karma points accumulated by users. MOONS spiked at least 18% over 24 hours.
Reddit IPO goes live
According to Reuters, the IPO launched 38% above its expected $34 per share price due to over-subscription, signaling demand for the social network’s stock.
Last month, crypto.news reported that the company held cryptocurrencies on its balance sheet including Bitcoin (BTC), Ether, and Polygon (MATIC). The assets were disclosed in a Feb. 22 IPO filing with the U.S. SEC.
Reddit said it acquired these tokens with excess cash reserves to experiment with blockchain and crypto technology. The firm also said ETH and MATIC were specifically bought to settle some goods and services expenditure.
