Reddit NFT Shop Crashes as New 3rd Gen Collection Empowers Artists

Reddit launched its highly anticipated collectible avatar NFTs featuring a larger artist roster, but its shop couldn’t handle it.

Reddit logo looking at a mirror with the collectible avatar NFT.
  • Reddit launched Gen 3 of its collectible avatars.
  • Gen 3 Collectible Avatars plans to empower artists and distribute their NFTs to a broader audience. 
  • Reddit’s NFT shop couldn’t handle the traffic and crashed.

Reddit recently doubled down on its NFT plans, launching the third generation of its collectible avatars on Polygon. This time around, the social media website is working with an even larger group of artists than the first two collections to create fun and exciting futuristic-themed avatars.

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While Reddit aimed to attract a wider base of collectors with this launch, it still hadn’t anticipated traffic that would eventually lead to its website crashing. 

More Than Anticipated 

Reddit’s Gen 3 collection was a huge success; however, the platform’s website struggled to keep up with the surge in traffic, going offline moments after the launch as bots swarmed the platform, snapping up avatars. One project, Pastel Alpha, admitted to purchasing numerous NFTs using bots. 

It’s also likely why the NFT collection only recorded $634 thousand in 24 hours compared to Gen 2 collectible avatars, which generated over $1.9 million in the same period, according to Dune Analytics. The bot infestation drew scrutiny from the community, with members criticizing Reddit for not imposing measures to prevent malicious practices. 

Although Reddit has restored functionality to the mobile versions of its shop, it has yet to respond with a resolution for its outage and set up systems to limit bot activity. Despite the challenges, it didn’t stop the collection from being an instant hit, empowering both old and new creators. 

Empowering Artists

Reddit’s newest collection features commissioned art from 97 artists – an increase from the 32 artists in the first two generations. The social media platform contacted numerous upcoming and established names, such as Chris Torres, creator of the famous Nyan Cat meme,  to create avatars with total creative freedom.

Creators could pursue their creative ambitions as long as their artworks fit the Future Realities template. Additionally, Reddit required artists to sign non-disclosure agreements (NDAs) to prevent leaks. However, despite the platform’s efforts, images of the artworks still made it to the internet. 

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Reddit received praise for its creator-forward approach, considering current NFT platforms have reduced creator rebates to pump trading volumes. Some users shared concerns about the oversaturation of quality and dilution of the collection. 

However, Reddit’s NFT collection clearly focuses on making art and avatars more accessible than supply dynamics.

According to Dune Analytics, the platform’s NFT initiatives have significantly increased NFT adoption among its users, boasting over 7.7 million unique minters, 11 million total mints, and a market cap of over $74 million as of press time.

 On the Flipside

  • Competitive social media platforms Facebook and Instagram pulled the plug on their NFT projects. 
  • Reddit had previously partnered with FTX to integrate crypto payments. 
  • Rumors have circulated that Twitter plans to test new features like an in-app exchange. 

Why You Should Care

Reddit hosts over 430 million users every month. The platform is one of the largest social media websites in the world. The forum’s NFT initiative could propel Web3 adoption in the right direction by introducing blockchain technology to millions of users. 

Read about the top crypto subreddits:

Top 10 Crypto Subreddits to Join in 2022 

Read the French Government’s plan for the Metaverse:

France’s Metaverse Experts Seek Alternative “French Strategy”

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.