From rewarding content producers to providing a quick way to tip bloggers, Reddcoin is an interesting cryptocurrency.
But what is Reddcoin aiming to achieve?
And does RDD have a long-term vision?
In this Reddcoin review, we’ll look at the pros, cons and use cases of Reddcoin (including predictions for the future).
1. What Is Reddcoin?
Reddcoin is a social cryptocurrency.
It’s ticker symbol is RDD.
RDD coin uses a decentralized blockchain network, designed to allow people to tip content producers.
So let’s say you’re watching a video on YouTube that you really liked:
With Reddcoin, you can send a tip to the content producer to say thanks.
RDD coins can be sent to anyone globally.
The Reddcoin team have advertised their transactions as being zero fee and instant.
1.1. What Is Reddcoin Tipping?
So Reddcoin is a currency designed for tipping on social media.
That means you can reward content creators you like with RDD tokens.
But why would you do that?
Well, maybe you want to encourage them to create more content or you just want to show your gratitude for the content they’ve created.
The Reddcoin Chrome extension actually works across most major social media networks.
So you just install their add-on to your Chrome browser and then start tipping when you want.
2. The Benefits Of Reddcoin Reviewed
So why would anyone use Reddcoin?
Well, there’s 2 audiences for this cryptocurrency:
Content producers and content consumers.
Let’s look at the benefits of RDD coin for both.
2.1. Content Consumers (Senders)
Content consumers is basically anyone who interacts with content online.
This could include videos, blogs, music etc.
If you like the content, you can tip the person who created it.
The benefits of RDD coin include:
- You can reward content producers for creating content
- You’d be able to give feedback on the content you like and want more of
- You can encourage content producers to create more content
- Allows content to be filtered between the good and the bad (i.e. good quality content is rewarded with RDD coin tips)
- Your payment data is decentralized – meaning it’s more private and secure
Plus tipping with Reddcoin is potentially easier than using existing payment methods.
E.g. With PayPal you:
- Need someone’s email address
- Your data is stored online
- It costs you fees to send transactions
- And there are international currency complications
2.2. Content Producers (Receivers)
This includes those who produce content and want to monetise it.
Think bloggers, YouTubers and Soundcloud artists etc.
For content producers, the benefits of Reddcoin includes:
- It’s easier to receive tips
- You don’t have to pay transaction fees
- If you have followers internationally, everything transacts in one cryptocurrency – RDD
- It’s an easier way to monetise your content
- Accepting donations in Reddcoin doesn’t affect your content quality (unlike banner ads, pop-ups or sponsored advertising)
- Your tips are decentralized – so you don’t have to worry about ‘advertising friendly’ guidelines
2.3. Data Protection
If you’ve seen the controversy around Facebook and privacy issues recently, then you may already know that most social networks store your data.
That means you don’t have full control over your privacy.
The problem is, these networks are centralized:
So your data is stored in one place – with one centralized database.
And some argue that it’s too much power for one company to have.
With Reddcoin, you store your data securely on a peer to peer network, so there’s no third party handling your data.
This could allow more privacy for the user, and an extra layer of security.
3. Reddcoin For Content Creators
We all have bills to pay.
But content creators often have a hard time monetising their content.
For example, you might have 100,000 likes on Facebook, but it’s hard to turn that following into a sustainable income.
And if you can’t sustain your income, you’re not going to be able to spend as much time on your projects as you’d like.
Obviously producers want to create great content that their audience loves.
But they also want to fund their projects.
Because they’re investing their energy and time into creating content.
With Reddcoin, you can create an extra revenue stream for your content, allowing people to tip and reward you if they like the content you’ve created.
4. Reddcoin Mining
This means if you download their wallet, stay connected to the internet and hold their tokens, you’ll be rewarded by receiving Reddcoin tokens.
Obviously the rewards depend on the overall market value of Reddcoin.
And you aren’t going to earn a massive amount of income unless you hold a lot of tokens.
However, it’s still a useful option if you’re planning to be a part of the Reddcoin ecosystem anyway.
Reddcoin’s blockchain is a little more ecofriendly than Proof of Work blockchains, because it’s PoSV.
That means you don’t need huge mining rigs and tons of electricity to mine it.
Instead you just download their wallet and stake the tokens.
5. Reddcoin Review & Predictions
You can find Reddcoin’s latest price in USD here.
And you can find a price chart of RDD coin below.
But in terms of future predictions, what’s in store for RDD?
Well, like the whole cryptocurrency market, Reddcoin’s price has fallen substantially since December.
And right now, Reddcoin’s price shows no sign of recovering to it’s previous peaks.
That’s a bit of a warning sign for investors.
So is Reddcoin a good investment?
And will it’s price increase?
Well, with 27 billion Reddcoins in circulation, RDD token is never going to hit the peaks of Bitcoin.
And it’s not supposed to:
Reddcoin is designed as a token that’s easy and lightweight for mass scale transactions.
That means it’s price will never hit mega figures.
Therefore it’s perfect for small, low value transactions like sending tips.
Now let’s review some of the top pros and cons of Reddcoin.
5.1. Pros Of Reddcoin
Obviously, social media runs at the heart of the internet.
Almost every piece of content is either hosted or promoted via social media.
And every day, millions of pieces of content are published to the internet.
So if Reddcoin powers social media networks with it’s cryptocurrency, then it has the potential to gain a huge audience.
Plus social media networks are continuing to grow to billions of users – and this could continue in the future.
If Reddcoin can match the growth of social media, then it could reach millions of people.
Reddcoin is mined via Proof of Stake Velocity.
This is a more sustainable way of maintaining the network, keeping down transaction fees and increasing user adoption.
Plus, because they don’t rely on miners, it’s a more eco-friendly option.
(You don’t need a powerful mining rig or vast amounts of electricity to mine RDD).
This could be a useful asset for RDD’s long term sustainability.
Reddcoin have already released their Chrome extension via GitHub.
So unlike most cryptocurrencies, this isn’t as much of a speculative project.
I don’t think their extension will be perfect, but it could be interesting to test it out and see how it goes.
Supports Content Producers
We all love content – videos, blogs etc.
But because of the rise in content, it’s becoming a bit of a commodity.
And therefore, content producers are having a hard time online.
Plus it’s becoming harder and harder to monetise content – and I think that’s only going to continue.
For example, more and more people use an ad blocker now which means content producers are losing valuable advertising revenue.
Plus networks like YouTube are significantly reducing advertising commissions:
To the point where if you don’t get millions of views on your videos, YouTube ads aren’t really going to bring in much income.
Reddcoin therefore has a strong use case because it’s allowing content producers to increase the income they receive from their content.
More content is being produced than ever before.
That’s amazing – but it’s a problem too.
Because now there’s a lot of poor quality content too.
When you click on a result from Google, there’s a lot of poor content out there still.
RDD coin allows users to reward great content – therefore giving content producers encouragement to increase the quality of their content.
If you scaled this up to thousands of content producers, the overall content quality of the internet could increase.
That’s because content producers have a stronger incentive to:
- Spend more time on improving their content
- Refine it so that their audience enjoys it more
- Get real time feedback (measured by RDD donations) as to which content their audience prefers
In the same that you tip great service in a restaurant with dollars, you’d tip great content with Reddcoin.
Reddcoin has been around for a few years now.
In fact, it was launched way back in June 2014.
So in a cryptocurrency world that’s really just emerging, that’s actually quite a grand old age.
Now what does this mean for Reddcoin?
Well, essentially, this isn’t a project that’s going to disappear overnight.
They have more credibility than most projects.
Plus Reddcoin’s project has been going for so long, they’ve developed brand recognition and a decent community of followers.
Just like Dogecoin, there’s something fun about sending 3,000 coins to your friends.
And it’s no different for Reddcoin.
That’s why they’ve circulated a huge amount of RDD tokens.
In fact, there are 27 billion Reddcoins circulating.
But it’s designed like that on purpose:
To allow the novelty effect of sending mass volumes of tokens.
5.2. Cons Of Reddcoin
So here’s some of the major cons associated with Reddcoin.
(I’ll review Reddcoin cons in more detail below).
Reddcoin’s branding feels a little spammy and dated.
For a technology that’s quite futuristic, their marketing is quite low budget.
I think a lot of users would be put off by this:
And that’s a red flag for investors of RDD.
Even their website looks like it’s just a very basic WordPress theme (see example screenshot below).
When it comes to technology, first impressions and usability are everything.
So I’m not convinced Reddcoin gives out a great first impression.
Pump And Dumps
Plus, Reddcoin was pumped and dumped after a promotion by John McAfee.
That’s not a good sign.
This event is constantly mentioned whenever you see Reddcoin discussed on Reddit or Steemit.
And that’s a problem:
Because once a coin has a bad reputation, it’s hard to get rid of it.
Just look at Verge:
Most online cryptocurrencies can’t take the coin seriously after it’s promotion by John McAfee.
Reddcoin has a lot of competition in the content creation world.
For example, Steemit also allows content creators to be rewarded in cryptocurrency tokens.
So what’s the difference between RDD and Steemit?
- Steemit has a much larger user base (around half a million people use Steemit)
- Steemit doesn’t just reward content producers, it also hosts content
- So Steemit actually acts as a social media network – whereas Reddcoin is just a Chrome add-on
- Steemit hasn’t suffered the reputational problems that Reddcoin has
So to me, it seems like Steemit is more established and versatile than Reddcoin.
There have been reports that Reddcoin is struggling to achieve consistency with their development community.
As an open source project, the improvement of Reddcoin’s wallet really depends on a strong team of developers.
If their team isn’t reliable, then the project’s going to struggle to take off.
Plus new upgrades will roll out slowly and the coin won’t really grow in value in the long term.
As an investor, if you can’t trust in the reliability of the development team, then you know there’s not much long term growth.
Plus if they can’t deliver on their promises, then there will be less confidence from other investors too.