GM DOers!
NFT 👏 mainstream 👏 adoption 👏 is here!
And it was done by a web2 company.
It’s now evident that Reddit has the clearest and most pragmatic vision of web3 among web2 companies, and even among web3 ones.
They’ve been executing their web3 playbook flawlessly, and have managed to onboard millions of Redditors on web3 and NFTs without them knowing it. And they’re loving it!
It’s well-known that people on Reddit are one of the harshest critics and skeptics out there on the internet, and so it speaks volumes when a company knows its people so well that it’s managed to crack the formula for getting them on board with NFTs.
How?
They did not focus on the NFT/web3 aspect one bit.
They simply built a product they knew their users will have a lot of fun with, and will proudly wear as a badge of honor and invest time and money in without expectations of financial gain.
Among the large social media giants, Reddit is the only one that’s for years been consistently committed to leveraging blockchain technology and NFTs in its own product and has kept adding features that complement and build on the previous ones.
Reddit began by airdropping customizable avatars for users to personalize and use platform-wide. They sold these avatars at reasonable prices, with reselling options on external markets, showcasing NFT portability.
Soon, a marketplace for buying, selling, and creating avatars will launch.
Additionally, Reddit is dabbling with token-gated communities, granting access to specific subreddits based on avatar ownership. This enhances community building on Reddit and expands potential experiences beyond the platform. Things are happening!
Ready to find out more? Let’s jump in.
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Reddit’s NFT Journey
Reddit has been dominating the NFT space.
With over 10 million Snoovatars minted to date and 8 million wallets created, Reddit has quietly become one of the largest and most active NFT/web3 communities in existence. Let’s look 👀🔛⛓ for deets:
And no one has even used the words NFT or web3. How did this happen?
Based on the platform’s mascot Snoo, these Snoovatars have become a user favorite, creating thriving communities joined together by their love for these quirky Reddit’s aliens.
Snoovatars, designed by independent artists and Reddit users from creative communities like r/Comics, can be customized with various elements for a personalized profile picture.
Since the blockchain-powered Snoovatars' launch in August, Reddit has released free and paid mints for all. Each collection released has been fully minted, showcasing their popularity. Impressive!
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Reddit offers paid Snoovatar mints at reasonable fixed prices ($10-$100) instead of using auctions, ensuring fairness and avoiding greed.
Maintaining credibility while developing their web3 ecosystem is a top priority for them, as they focus on creating valuable products for users.
And now that they’ve done that, what more can they do?
Creating the Market First
Every step has been measured and intentional.
Reddit's first step was creating a market by airdropping millions of free avatars to users, focusing on engagement and gauging community reception.
Despite initial skepticism, people embraced the concept and built communities around it.
Even with fixed prices for paid mints, web3-savvy users quickly started trading Snoovatars on secondary markets, at some point even reaching Top 10 on OpenSea for 24h volume. 🤯
Secondary sales may have subsided, but it's evident that users want more than just minting avatars.
Questions arise: How can one purchase a missed collection from fellow Redditors? Is it possible to sell an avatar and buy another?
Most Reddit users lack web3 expertise to navigate self-custody avatars on NFT marketplaces, leaving them without alternatives.
Or are there?
Native Marketplace and Token-Gated Communities
Reddit, recognizing the growing interest in avatar trading, will soon launch a native marketplace.
This platform will enable users to trade avatars while allowing Reddit to establish marketplace rules.
It's likely that Reddit will offer creators—also users—generous royalty fees, rewarding the community and encouraging platform participation.
What I’m wondering, though, is whether Reddit will allow other NFTs to be traded on their marketplace? Likely not in the beginning, but who knows…
There's potential for intriguing use cases even if non-Snoovatar NFTs can't be traded on the marketplace. For instance, ticket NFTs could make users eligible for special Snoovatars that grant unique privileges on Reddit. Do I smell token-gated communities? 👀
It seems so! A recent screenshot circulating around the internet shows that Reddit is indeed planning on rolling out this feature.
This is huge! Reddit is an ideal platform for such features since users are already familiar with communities (subreddits) and Snoovatars.
Subreddits could be accessible only to specific avatar owners, or certain sections could be unlocked for them while remaining open to others.
Moreover, if external NFT attestations were enabled, users could prove ownership of various NFTs, such as profile pictures, POAPs, or concert tickets, fostering communities around shared interests and real-life activities. The possibilities are thrilling.
What do you think, does Reddit have the potential to become the largest NFT marketplace (with real NFT utility) in the space? Reply to this email with “Reddit FTW!” or “No chance!”
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Reddit’s Web3 Adoption Playbook
Reddit seems to be on a roll when it comes to executing flawlessly on their web3 strategy.
They know their users well, and it shows. They know they have to show real utility to them.
They’re meeting the fans right where they are, without hype, without future promises, without slogans like “web3 is the future, get in now!”
This is how it’s done, and both web2 and web3 companies should be following suit.
Without them knowing, Reddit has been bringing (web3-powered) great products to their users while at the same time gradually educating them on web3.
It is only the beginning of platforms adopting web3 technology, and, once more features like Reddit’s become available elsewhere, users will begin to discover the true power of self-custody, portability, and interoperability that comes with it, and all the amazing features they unlock.
🤝 Together with SegMint: Revolutionizing the way we think of digital ownership.
Wouldn't it be cool to buy and hold parts of an expensive NFT and share its ownership and utility, like airdrops or exclusive access?
Well, say hello to SegMint.
SegMint is a non-custodial NFT platform set to launch in Q3 of this year and aims to allow users to easily create access keys and share ownership of NFTs with friends and community members.
The team is going through their Beta release soon and has opened up their waitlist for Web3 Academy listeners.
If you want to stay at the forefront of web3, sign up for SegMint's waitlist today!
Uncover More of Web3’s Latest News
- Meta is working on a secret decentralized Twitter competitor that will be compatible with Mastodon: Source
- Magic Eden Games, the innovative gaming hub empowering web3 game developers, offering NFT marketplaces for an unparalleled gaming experience: Source
- BlockDown Festival announces Portugal as its next location for huge Web3 culture festival: Source
🟣 Hold on, DOers!
The “Academy” in Web3 Academy is there for a reason, so we’ve got some homework for you 😉
WATCH
Reddit co-founder Steve Huffman joined the Paris Blockchain week to talk about Reddit’s endeavors in web3, his views on the industry, and why he thinks web3 companies should be focusing on building useful products that people want to use. He’s extremely level-headed and pragmatic in his views and is a great example of a mindset that will help bring web3 to the masses. Check it out on Youtube!
LISTEN
On the topic of web3 playbooks, check out our podcast episode with Amanda from Serotonin, the leading web3 marketing agency and product studio. Amanda sat down with us to discuss 6 web3 concepts that businesses and creators must plan for in 2023. They are - the future adoption of NFTs, what community means to web3, web3 marketing, web3 social and the creator economy, the conflict of open and closed worlds, and the new economic survival of DAOs. Give it a listen! 😉
Thanks for reading and we’ll see you on Wednesday! ❤️
Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.
