Is Reddit’s MOON Token Really 2000x Bigger Than the Global Economy?
A token for content that is rewarding on a particular Reddit forum now has the unusual honor of being thousands of times bigger than the entire global economy… kind of.
MOON, a neighborhood token for its r/Cryptocurrency subreddit, technically has a market cap of over $2.88 septillion (that is 24 zeroes) at press time. That dwarves the global economy which, according to data from the World Bank, came to about $133 trillion in 2019.
So on paper, a four-month old token, designed to reward good content on a subreddit, has”mooned” to become 2,000 times larger than the value of everything else humanity has ever made, ever.
But before you start thinking that the end is nigh, this astounding number is merely a market quirk.
Built on Ethereum’s Rinkeby testnet, MOON wasn’t initially tradable on secondary markets, which made it hard to pin down a price. But users soon devised a workaround.
It works like this: MOON holders go to a website called xmoon.exchange and convert their tokens into xMOON — a type of derivative product. They can then trade these on HoneySwap — a type of automated market maker exchange like Uniswap — for xDAI, another derivative that could be freely converted for the traded and highly liquid Dai stablecoin.
Using this route, MOON holders can determine a dollar-denominated value for their tokens. At the time of writing, HoneySwap was offering 10.5 xMOONs for an xDai. Assuming a 1:1 conversion with Dai, users can exchange one MOON token for 0.095 DAI.
Data from CoinGecko reveals Dai is currently worth $1.01, landing MOON using a price of just under $0.096. And, with Etherscan currently showing a source of 30 septillion MOON tokens, that has magnified the token’s theoretical market cap to the $2.88 septillion figure.
Of course, this does not mean the global economy is now 2,000 times larger than it was earlier this month. Most of this value remains unrealized. Should more subreddit contributors opt to convert their MOON holdings into Dai, the exchange rate will fall hugely, forcing the token, and its market capdown to a much more realistic value.
Further, the massive number seen on Etherscan does conflict with the planned supply indicated on Reddit’s page introducing the token. That suggests tokens will be limited to 350 million by 2035.