Belgium (CoinChapter.com) — Many cryptocurrency enthusiasts suddenly express an interest in the xMoon exchange. Ever since Reddit introduced its native MOON currency, people have looked for ways to do more with it. Trading it for the DAI stablecoin appears appealing, but is it all worth it?
Recapping The Reddit MOON Launch
For those who missed the news or forgot about it entirely, Reddit introduced support for a new native digital currency in 2020. The Reddit Community Points are tokens that let users earn rewards for reputation and contributions. If a subReddit supports the RCP concept, users can begin earning MOON by engaging with community members and content. Users can earn this MOON currency via engagement in the /r/cryptocurrency community.
What makes MOON appealing is how it is an Ethereum-based token. That makes MOON interoperable with Ethereum applications and assets, creating many potential use cases if enough platforms integrate support for it. Although MOON’s usability remains fairly limited even today, that situation can change very quickly.
The Rise of xMoon Projects
Many enthusiasts pay close attention to the xMoon projects that are popping up on the xDai blockchain. MOON tokens from Reddit cannot be used for much at their core, but converting them to xMoon creates a different story. Through the TokenBridge technology, users can convert MOON to xMOON on the xDai chain. It creates an opportunity for new use cases to be unlocked, and several projects exist already.
The first application is xMoon exchange. As the name indicates, it is a platform to exchange and trade MOON tokens. As such, it is possible to exchange between xMoon and xDai and vice versa. For those who want to convert their MOON tokens to a stablecoin, this may prove to be worthwhile.
The second application is 1Hive, a fork of the first iteration of Uniswap. With support for xDai, xMOONs, and HNY, there are some unusual trading markets to explore. Similar to Uniswap, the exchange requires multiple transactions to unlock tokens and exchange tokens.
Although there are other platforms and services capable of supporting xMOONs, the ecosystem remains relatively small for now. Most people may not even realize there is a MOON currency or what they can use it for. Most of the native MOON functionality rests with Reddit, including user tipping. However, converting it to “proper” currency can be an appealing option to some.
Future MOON / xMOON Outlook
The big question is what the future will bring for both MOON and xMOON. For now, it seems unlikely that Reddit will introduce more features to the currency, as it is still a niche experiment first and foremost. Moreover, it is a currency limited to one subReddit, although other subReddits may receive their own digital asset in the future.
For xMoon, on the other hand, the future outlook is not necessarily promising either. It will primarily hinge on whether developers want to build new tools, products, and services over the coming weeks and months. Having more supported pairs on the 1Hive platform can be a welcome start. Whether there will be any trading volume remains unclear for now.
Closing Thoughts
It is interesting to see crypto developers try to bring more functionality to a digital asset intended for use on Reddit. Whether that means people have an interest in exploring xMoon and its small ecosystem is a different matter. Exploring new opportunities can trigger short-term excitement, but the xMoon universe needs a long-term vision to succeed. Currently, there is no long-term plan as of yet.
JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.
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