Reddit is onboarding millions of people to NFTs with its Collectible Avatar collection, and they aren’t slowing down any time soon! The project features artwork from over 100 leading artists, from meme masters to avant-garde graphic designers. Each artist lent their talents to designing NFTs based on the popular website’s mascot, a small alien named “Snoo”.
However, since launching in August 2022, the collection’s blistering volume has only been outmatched by its controversy. Many of the site’s 55m daily users immediately questioned the decision to enter Web3. Some even asked why the social media giant would support anything related to the oft-maligned crypto industry.
On the other hand, fans of the collection have overwhelmed Reddit’s NFT marketplace with demand, forcing the website to shut down at times due to unmanageable traffic. Despite any controversy, there is undoubtedly massive interest in the collection. To date, over seven million unique wallets have purchased Collectible Avatars since the project launched in August 2022.
The huge scope of the collection has also created confusion as well, however, and many aspiring NFT collectors ended up with more questions than digital assets. How much are Reddit NFTs? What are the best NFTs to invest in? How do you sell Reddit NFTs? These are just some of the dilemmas new and experienced NFT investors have been faced with.
We’ve broken it all down for you, though! To learn more about Reddit NFTs, please continue to read below and learn what you need to know about the biggest new NFT project on the blockchain.
Reddit Avatars – Non Fungible Tokens or Digital Collectibles?
Reddit understood one thing about its community from the beginning– many of its users dislike NFTs. As a response, the California-based tech company decided to downvote the term “NFT” in favor of the term “digital collectible”.
This somewhat Orwellian tactic was a success. For the most part, the community bought in, helped in part by the idea they were buying “digital collectibles” and not giving to the NFT craze.
Furthermore, Reddit also viewed crypto terminology as unnecessarily complicated. The decision to move away from the term “non-fungible token” also came from a desire to simplify the language around NFTs. In Reddit’s opinion, avoiding crypto jargon would help to minimize confusion for its users.
Reddit Onboards 3 Million Users Through Free NFTs
Reddit’s first NFT drop consisted of 90 different designs with a total of 40,000 individual NFTs. The mint prices ranged between $9.99 to $99.99. These sold out in about a month! Then, strong secondary sales followed as many Reddit users paid premiums for artwork from their favorite artists.
From there, Reddit stuck to the first rule of Web3– people like free NFTs. The social media giant rewarded its most loyal users, people with a large amount of “Karma”, by airdropping them free Avatars. By rewarding these power users, Reddit found an easy way to help the NFT collection gain traction with the social media site’s most loyal supporters.
The move was so popular that over 3 million Reddit users have signed up for crypto wallets to date. This number is especially impressive given that OpenSea, the world’s biggest NFT marketplace, only has 2.3m connected wallets.
Reddit Digital Avatars Reach Top 10 on OpenSea
It came as no surprise, therefore, that Collectible Avatars almost instantly reached the top 10 list for OpenSea volume rankings. Some people bought them to flip, seeing the collection as an opportunity to ride Reddit’s popularity for a quick profit. Other people bought them to use as PFPs on Reddit itself. Further, some people bought them to hold long-term in case early-generation Reddit NFTs ever become historically significant collector’s items.
Either way, Redditors quickly flooded OpenSea with trading volume. Almost overnight, Reddit managed to create the biggest Web3 community in existence.
Super Bowl NFTs
Reddit continued its hot streak by partnering with the NFL to release Super Bowl-themed Collectible Avatars. Football fans could claim one NFT per account for free. There were four team options to choose from including the Chiefs, Eagles, The Champs, and LVII Super Fans.
The partnership was another success. Redditors minted over 2.1m Avatars and the project with an astounding 99% unique owner count. This hasn’t translated to lasting resale value, however. The current floor of the collection sits at .03 MATIC, good for a paltry 3 cents.
How Much are Reddit NFTs Worth?
Collectible Avatars is a huge collection with over 3.7m NFTs. For the most part, however, Collectible Avatars are still affordable. Of the 7,400 listings available on OpenSea, there are 5,314 NFTs available to purchase under .25 ETH.
As of today, the least expensive Collectible Avatar outside of the Super Bowl collection costs .004 ETH or around $8. Many NFT insiders point to the project as an example of what we can expect from NFTs in the future. Instead of having PFPs worth thousands of dollars, many believe, we’ll see the widespread adoption of digital identities represented by inexpensive, readily-available NFTs.
What are the Best Reddit NFTs to Invest in?
The highest sale for a Collectible Avatar came from the “The Senses x Reddit Collectible Avatars” collection by the artist Rojom. A buyer paid 30 ETH, worth about $38,000 at the time, for one of Rojom’s NFTs in October 2022.
Rojom’s NFTs command the highest prices currently. Redditors seem to like his dark, somewhat creepy aesthetic. A handful of his NFTs have standing offers of 2.75 ETH as of today.
Other highly-sought after collections include the Midas Touch series by the artist poieeeyee, the Diamond Diablo avatars by Shutter, and The Assembler NFTs by Conall Murray. Each of these collections has wETH offers ready to accept over .5 ETH.
How Can I Buy and Sell NFTs on Reddit?
Anyone can buy Reddit NFTs on OpenSea. Additionally, buyers can purchase Collectible Avatars on Reddit’s own marketplace after first starting a Reddit account.
Part of the reason for the Collectible Avatars’ success comes from Reddit’s ability to simplify the onboarding process. For example, Reddit offers a built-in crypto wallet called a Vault. The Vault functions much like MetaMask and other Web3 wallets. However, it also connects to users’ profiles. Further, it allows users to purchase NFTs using credit cards. This is a huge breakthrough for someone unfamiliar with handling crypto and NFTs.
To make things even easier, they also partnered with layer 2 blockchain Polygon to keep gas costs low. Avoiding expensive gas fees helps to incentivize huge amounts of small purchases. It’s always hard to explain to people that transaction costs on Ethereum sometimes costs more than the value of the item they’re purchasing. By partnering with Polygon, Reddit managed to sidestep this pain point and help create a remarkably user-friendly approach for anyone new to Web3.
What’s Next for Reddit’s Digital Collectibles?
Reddit recently released the third generation of Collectible Avatars. The newest drop was the biggest one yet with collections from over 100 artists, including one from “Nyan Cat” creator Chris Torres. Like the previous two releases, demand was strong and the NFTs sold out quickly.
While Reddit hasn’t announced a fourth-generation drop yet, it seems almost certain that it’s coming soon. The social media company has already made $74m in revenue from NFTs alone. This accounts for 17% of the company’s $424m total revenue! Given the already enormous size of the Collectible Avatars collection, we can safely assume the San Francisco-based tech company is not worried about diluting its product.
This sentiment fits in well with statements from Reddit’s CEO Steve Huffman. Huffman clarified that the goal is not trying to “sell NFTs to crypto people to make a bunch of money.” Instead, the company’s motivation is to build “identity and reputation” into the community.
This idea of digital identity is foundational to Reddit’s Web3 strategy moving forward. As part of this approach, Reddit has also introduced an avatar builder. The builder allows users to customize their favorite Collectible Avatar with hats, accessories, hair, jackets, etc. In the process, Reddit is allowing holders to further personalize their digital identities.
Reddit is proving to be a significant player in Web3. In under a year, the tech company has managed to create the largest community in the NFT space and onboarded millions of people to holding digital assets. Our futures are undoubtedly going to become more and more digital over time. As the successful rollout of the Collectible Avatars NFT collection indicates, Reddit is adapting to this trend better than its competition.
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This article is educational material.
As always, make your own research prior to making any kind of investment.