The Internet front page announced an “experiment” on Thursday morning, and Reddit product leader Peter Yang explained that the irreplaceable token will take the form of a cartoon avatar modeled on the Reddit logo.
The bid for NFT, which is essentially metadata encoded on the Ethereum blockchain, describes an object or a piece of art and has reached thousands of dollars. The three NFTs currently sold were minted on June 17 under the name of CryptoSnoos and auctioned on the OpenSea platform.
“Original Block”, &”Helium” and &”Snoopermatic” are the target artworks of NFTs, all based on the original Reddit logo drawn by Reddit co-founder Alexis Ohanian in 2005.
“Use this rare opportunity to own a piece of Reddit history-get the CryptoSnoo NFT built on the Ethereum blockchain and start your collection,” read Reddit’s NFT page. The auction will expire on June 30, but if the bidding becomes intense, it may be extended.
At the time of writing, the bid for WETH (WETH or & “Parcel Ether” is the ERC-20 token on the Ethereum blockchain) for the “original block” NFT has exceeded $4,000. This is just the beginning of Reddit’s foray into NFT.
Like CryptoKitties, Reddit seems to be betting on the idea that users will value rare CryptoSnoos and want to buy and trade them. CryptoSnoos is divided into three categories: “Legendary” means “unique”, “Rare” means “extremely limited edition”, and “Epic” is also called “limited edition”. Encourage Reddit users to “find available CryptoSnoos in the Reddit Avatar Generator”.
All three CryptoSnoos currently sold are “owned by Reddit,” so presumably any sales proceeds will be distributed between Reddit and OpenSea in some way. (OpenSea usually draws 2.5% of sales, but it is not clear whether this transaction applies to CryptoSnoos.)
In particular, buying CryptoSnoo NFT means very specific things. According to Reddit’s NFT terms of service, this is entertainment. “You acknowledge and agree that CryptoSnoo NFT can only be used for entertainment purposes,” TOS explained.
But wait, there is more: TOS clearly stated that your ownership of CryptoSnoo NFT will not be granted to you. In addition, Reddit stated that you can terminate your “licensing rights” in CryptoSnoos if “you degrade or initiate any Reddit, its affiliates, and their respective managers, directors, members, employees, agents and/or lawyers take legal action.”
Send such a fair warning to potential CryptoSnoo owners, don’t talk nonsense on Reddit! If you do this, your unalterable public property may suddenly be revoked, which will only make the rest of us interesting. The commercial rights of the artwork it represents.