Success Story Behind Reddit Collectible Avatars NFT Collection

Reddit Collectible Avatars - A Digital Success Story

Reddit Collectible Avatars, assets designed and created by artists within the Reddit community, offer unique privileges to their owners on the platform. These digital avatars are fully owned and can be used both within and outside Reddit.

Built on the Polygon blockchain and priced in fiat, Reddit Collectible Avatars mark Reddit’s pioneering step into the NFT world. Unlike other NFT projects aiming to build new communities around digital assets, Reddit NFTs originate and evolve as extensions of existing, vibrant community subreddits.

Each Reddit NFT carries its own history, personality, and narrative shaped by the authors/artists from creative subreddits. Therefore, Reddit Collectible Avatars are more than mere digital profile pictures; they embody a social experience.

Designed by independent artists in collaboration with Reddit, creators are compensated for each avatar sold on the platform, alongside ongoing royalties on secondary market transactions.

According to TechCrunch, Reddit collaborated with 30 artists to release 40,000 NFT avatar designs a few months ago. These were traded on the Reddit app, priced between $9.99 to $99.99, and all units were sold out. Users purchased limited edition avatars with licensing rights to use them within and outside Reddit, customizable through Reddit’s integrated avatar builder.

Reddit’s CPO, Pali Bhat, revealed that 3 million users have created Vaults — Reddit's blockchain wallets, with 2.5 million established specifically for purchasing Reddit Collectible Avatars.

As of the time of writing, over 2.93 million Reddit Collectible Avatars have found owners across 61 different collections. Of these, 2.84 million are currently owned, with only 3,650 (0.13%) being actively traded.

Reddit’s remarkable entry into the crypto and NFT market this summer, surpassing even long-standing NFT platforms like OpenSea in active user accounts, is an impressive feat. This is notable considering market fluctuations in crypto, NFTs, and trading volumes in 2022.

What Reddit Collectible Avatars Mean for NFT Introduction?

The success of Reddit Collectible Avatars offers several takeaways for the NFT community:

1. User Interface Simplification and Reddit’s Vault Infrastructure: Reddit’s success lies in simplifying user interfaces and its own crypto wallet infrastructure. By introducing Vaults, Reddit allows users easy access to Reddit Collectible Avatars with just a few clicks. This move eliminates traditional crypto wallet barriers, making access significantly easier. Starbucks plans a similar approach for their upcoming NFT launch.
2. Accessibility and Pricing: The majority of Reddit Collectible Avatars were airdropped for free or sold at relatively low fixed prices (around $10). This pricing strategy aims to foster widespread adoption in the future, as most users may hesitate to spend large sums on a profile picture. Offering NFTs at low or no cost to users new to the space can prove successful.
3. Brand Strategy: Reddit chose to use "Collectible" instead of "NFT". While NFTs are a technological revolution, the term has faced criticism and debate. Brands and creators increasingly opt for less technical and more user-friendly language to appeal to a broader audience.

Reddit, one of the world's largest online communities with nearly 330 million active monthly users, is an attractive platform for exploring NFTs. Users show growing interest in unique avatars tied to intriguing narratives. True ownership and immediate trading value increase the appeal, encouraging deeper exploration of digital assets within the Polygon blockchain ecosystem.

What Drives the Value of Reddit NFTs?

A strong community is the backbone; NFTs are just the added value
Reddit’s community flourished long before crypto or blockchain technologies existed! Even without NFTs, Reddit thrived.

With millions of loyal members across numerous subreddits, Reddit built value for artists within its community.

💡 Reddit NFTs are a new way for Reddit to honor and create value for its community, particularly for artists.

An illustrative example is the popular subreddit r/raimimemes, dedicated to memes related to Sam Raimi, director of films like Spider-Man and The Evil Dead. With a massive, active community, thousands of physical collections are shared among members, each with a unique story.

Take, for instance, "Raimi's Signature," a 4-page script written by Sam Raimi for his 1985 film Crimewave (credited under the pseudonym "Sam Reide"). Initially sold on eBay for $1,000 in 2005, it was auctioned for 175 ETH (over $398,000 at the time) in 2016.

Empowering Reddit Artists

As stated on Reddit’s blog, Collectible Avatars empower Reddit artists by offering an easy way to showcase and monetize their work. These images include contributions from vibrant community artists active in popular subreddits.

Artists are paid for each Reddit Collectible Avatar sold on Reddit, minus any fees. They also receive royalties on secondary market sales that support copyright holders.

Reddit Collectible Avatars are voluntarily created by artists on Reddit. Artists post introductions to their collections, outlining their inspirations and design meanings. Each avatar holds unique significance based on individual experiences, adding to their value.

If users admire a particular artist or resonate with a piece of art, they can contribute by purchasing the avatar, thus supporting the artist.

For example, Laura D's artwork "Protectors of the Forest" integrates her love for nature with Reddit's Snoo character. Read more about her story here.

While many corporate NFT collections are accused of being cash grabs, Reddit Collectible Avatars stand as evidence to the contrary. In a statement to The Verge, Reddit's Tim Rathschmidt mentioned, "Reddit will allocate 5% for minting on the blockchain network and supporting the creative program. The rest goes to the artists."

This isn’t Reddit's first foray into NFTs.
Reddit previously released a limited edition of CryptoSnoos NFTs on Ethereum, marketing them as NFTs. Only four NFTs were issued in June 2021, with one selling for 175 ETH in an auction — valued at over $398,000 at the time. A similar NFT later resold for 42 ETH in February, worth around $117,000 then.

Additionally, Reddit has explored blockchain space in various capacities for several years. They first deployed “Community Points” encrypted in late 2019, experimenting with various scalable open-source platforms offering enhanced cryptographic rewards to a large user base.

Conclusion

With a vast user base of nearly 330 million monthly active users, Reddit Collectible Avatars are poised to attract more users than typical NFT collections.

Reddit's clear advantage lies in its existing, highly engaged subreddit communities, unlike most native NFT collections in the crypto market, which are still building nascent communities.

Notably, Reddit Collectible Avatars were marketed carefully, avoiding any technical crypto terms. Reddit replaced "crypto wallet/blockchain" with "Reddit Vault" and eschewed the NFT term (a concept that has sparked intense debate and controversy in art and gaming communities) for a simpler, more understandable term: "Digital Collectible".

Critics argue that these marketing decisions limit involvement from crypto investors. However, by attracting new or cautious users to blockchain technology, Reddit has undoubtedly helped popularize NFT adoption among a broader audience, or should we say, digital collectibles.