Reddit’s cryptocurrency community has worked out a way to sell Reddit tokens ($MOON) for cash or other cryptocurrencies using a decentralized exchange.
In this guide, we cover how to sell MOON tokens from Reddit. But first, we’ll discuss what Reddit tokens are in case you’re hearing about it for the first time.
What are $MOON Tokens from Reddit?
$MOON token is an ERC-20 token (based on the Ethereum blockchain) launched by Reddit in May. The token is awarded to users based on their contribution to the r/CryptoCurrency subreddit and incentivizes quality content creation.
At the time of writing, the Reddit app shows 29,644,492 tokens in circulation, with new tokens being distributed every two weeks.
What’s the Caveat With Moon Tokens?
While Reddit reportedly launched MOON tokens to incentivize active community engagement and “represent ownership in the subreddit,” the team mentioned that that “Moons are independent of Reddit.”
Once users earned them, they are in charge of choosing what to do with the tokens, either to use them in the Reddit to boost their post visibility or unlock other exclusive features.
But what if someone decided to sell their MOON tokens, and there was someone else interested to buy them?
That is what has happened, and thus holders can now sell MOON tokens from Reddit for cash or other cryptocurrencies.
How is This Possible?
As noted earlier, MOON tokens are ERC-20 tokens. However, they are not yet live on the Ethereum mainnet meaning that you can’t directly access them. Reddit launched the tokens on Rinkeby (a testnet version of Ethereum) saying it eventually planned to migrate these community Points to the Ethereum mainnet, and carry over point balances.
To sell Reddit tokens for crypto or cash, one needs to be able to move these tokens off the Rinkeby testnet blockchain to another blockchain that supports it. This way users can move their Reddit MOON tokens off Rinkeby and sell them.
It is now possible to move Moon tokens to the Ethereum sidechain, xDai where users can swap them for DAI, and then sell back into another cryptocurrency or cash via an exchange like Binance or Coinbase.
We wrote this guide, not based on hearsay, but after trying the process which is lengthy, but not impossible.
How to Convert MOON tokens to Crypto/Cash
To complete this conversion, here are the main things you need according to our findings and an explainer shared on Reddit:
- A MetaMask account
- An ETH balance to cover fees
- Some Rinkeby Ether (to cover fees) on Rinkeby
- DeFi token, DAI (to be converted to xDAI to cover for fees)
STEP 1: Transfer MOONs from the Reddit Vault (Reddit’s in-app wallet for MOON tokens) to your MetaMask wallet.
To do this, you need to get the recovery phrase provided on the Reddit vault (available on Reddit’s mobile app. Select “Recover Wallet” on Metamask while setting up to restore your account with the seed phrase.
Alternatively, you send use the send button on the Reddit vault app, and then send the tokens from the app to your Ethereum address on Metamask. This is the option that we used.
Once the transaction is complete, switch networks on the MetaMask app from the “Ethereum network” to “Rinkeby testnet.”
Note that your tokens will not be instantly visible at this point, you still have to add MOON using the Custom token option on Metamask.
Moon Smart Contract Address: 0xDF82c9014F127243CE1305DFE54151647d74B27A
Token Symbol: MOON
After inserting this, you can proceed with the next step which involves converting the Moons to xMoons.
To complete this transfer, you’ll need some Rinkeby Ether to cover for fees. You can get some free Rinkeby Ether by complete the faucet on https://faucet.rinkeby.io/ or https://rinkeby.faucet.epirus.io/.
If none of these faucets works, find someone who holds Rinkeby ETH and ask them to send you some. In our case, we reached out to generous Redditor on the first guide we read on Reddit about how to swap Reddit tokens.
Step 2: Convert MOONs to xMoons and then DAI to xDAI
What you need:
- MetaMask address with Moon balance (You have this already)
- Rinkeby Ether (You also already have some from the Faucet)
- DAI (you will need xDAI to pay for transaction fees to swap XMoons for xDAI.)
To do that, buy DAI from Binance or Coinbase and send it to your MetaMask ETH address. Once you do that, then move to http://moon-exchange.herokuapp.com/ and connect your Metamask wallet. This option is available on the site’s homepage if you’re using it for the first time.
Next, use the Exchange Interface, and select swap Moon for XMoons.
We encountered the error message in the above screenshot while trying to swap Moon for xMOON. It also took literally 20 minutes for the conversion of Moon to xMOON to confirm on our wallet for the first time.
For some users, though, the transaction is instant, and you can see the xMoons on your dashboard within 2 minutes after confirming the transaction on MetaMask and waiting for the Exchange process to complete.
Either way, you should have XMoon tokens equivalent to the amount of Moons you converted available on your dashboard after some minutes.
Next, convert DAI to xDAI using the same “Exchange Interface.”
Click the Exchange button at the bottom of the page after inputting the value. 2 DAI should be enough for the entire transaction.
Step 3: Swap XMoons for xDAI
Once you have XMoons visible on your dashboard and xDAI. You need to swap these XMoons for xDAI via Uniswap fork, Honeyswap exchange (https://uniswap.1hive.org/)
Visit the above URL and connect your MetaMask wallet.
Next, select xMoons from the token to swap and then xDAI on the token to receive. Confirm the transaction and wait for a few seconds. If the transaction fails, try again as it appears liquidity is still building for the xMoons/xDAI pool on Honeyswap.
Please note that the numbers used for our transactions will vary from yours, and you will need sufficient ETH since ETH fees are outrageous these days. We used appr. $20 in ETH for fees. But if you follow the outlined steps, you should be able to sell your Reddit Moon tokens for DAI which you will now send to an exchange to sell for bitcoin or other cryptocurrencies.