It looks like the social news site Reddit is on the move to launch its own NFT Marketplace. According to a Greenhouse job posting, Reddit is looking for a senior backend engineer for a platform responsible for “millions of users to create, buy, sell and use NFT-backed digital goods.”
Does it Make Sense for Reddit to launch its Own NFT Marketplace?
Reddit has always been a blockchain and crypto-friendly platform. Many tokens, projects and platforms were able to moon thanks to a strong subreddit community. So if the speculations are true, then it wouldn’t surprise anyone. As it is, NFT Collectors and enthusiasts are already using the platform to decide which NFTs are worth purchasing. So launching an NFT Marketplace would be like extending Reddit’s services.
Reddit is scouting for talent with at least five years of experience in backend development as well as the ability “to design and implement complex distributed systems operating under high load.”
The job posting specifically and clearly mentioned NFTs, so Reddit is making its intentions clear:
If there is one thing we’ve noticed with NFTs, they too have an incredible power to create a sense of participation and belonging. With every new NFT project, a vibrant community of owners pops up with it. Fans of today’s biggest creators and brands are now flocking to buy digital goods directly from them — to support them, to gain exclusive access, and to feel a greater sense of connection with them. Over time, we believe this will only grow, and NFTs will play a central role in how fans support their favorite creators and communities.
The Competitive Landscape
2021 is undoubtedly the year of NFTs. Projects like Axie Infinity, Animoca Brands and OpenSea are solid proof of what NFTs can do commercially and tech-wise. According to DappRadar, Sales volumes of NFTs surged to $10.7 billion in the third quarter of 2021. This represents eightfold growth from the previous quarter.
Clearly, NFTs are here to stay. So Reddit’s move is just the start of many other NFT crossovers. Social media giants Twitter and Facebook are also on the move. Two months ago, Twitter announced that they are working towards allowing users to display an NFT as their profile picture.
Meanwhile, Facebook will undergo a major overhaul to embrace and support NFTs. Founder Mark Zuckerberg announced that in five years, Facebook would be a Metaverse company. There are also reports that the platform’s Novi wallets would likely support NFTs.
Aside from social media platforms, crypto exchanges will also openly challenge OpenSea’s dominance. To illustrate, the platform handled 35% of the NFT trading volume between February and April. As of press time, its market share is a solid 95%. So it would take a lot to edge it out.
One worthy competitor is Coinbase. According to the website Nonfungible, the NFT industry only attracts approximately 10,000 new wallets every week. So Coinbasewhich has 68 million users, could introduce NFTs to a much wider audience.
The good news is that consumers stand to benefit from a fiercely competitive landscape. As more players compete for a share of the market, the customer experience would also drastically improve.