Reddit Collectible Avatars: the Blockchain 'NFTs' Reddit Wouldn't Call NFTs

On July 7, 2022, Reddit launched a marketplace for blockchain-based 'Collectible Avatars' minted on the Polygon network, sold for fixed prices ($9.99-$99.99) and purchasable with a credit card via Reddit's 'Vault' wallet. Notably, Reddit's announcement avoided the term 'NFT' entirely — a marketing choice critics read as an acknowledgment of how unpopular NFTs had become. The announcement thread drew heavy backlash.

The criticism centered on what buyers actually received. Reddit's terms restricted users from treating the avatars as investments, and reserved the right to revoke the license. Critics argued the blockchain element was superfluous — Reddit could have sold artist-designed avatars to support creators without it — and that 'ownership' was illusory because Reddit retained control and committed to hosting the art for only about two years. Many saw the move as a company chasing a fading crypto trend at the expense of user goodwill.

Despite the backlash, the program reached large scale (tens of millions of avatars minted) and Polygon executives touted it as proof Reddit had 'cracked the NFT code.' But the trajectory then reversed: Reddit wound down its related blockchain Community Points tokens in October 2023, and in August 2024 it sunset 'Collectible Expressions,' the animated overlay feature tied to the avatars — part of a broader retreat from its crypto initiatives that vindicated early skeptics.