Ahead of the IPO plan, Reddit revealed that the company purchased a small amount of non-security cryptocurrencies.
Reddit is a popular American social news aggregation, content rating, and forum social network. Registered users submit content to the site such as links. This company is headquartered in San Francisco and the majority of the content moderation on this platform is managed via Reddit users, which makes this platform different from other social media platforms.
On 22 Feb 2024, Reddit submitted its S-1 with the American securities regulatory body SEC to officially confirm the company’s plan to go Public.
In the filing, Reddit confirmed that the company is holding some crypto assets e.g. Bitcoin, Ethereum & some other crypto assets. The company confirmed that the value of the holding assets is not very high.
Notebely company invested in only those crypto assets which are not deemed as security tokens by the US financial regulators. The company will use these funds in future for crypto & blockchain-related services.
Indeed Reddit aimed to provide a new virtual payment service, so that customers can easily trade virtual goods online.
The filing showed that the company’s developers are engaged in the use of the Polygon (Matic) network in the payment services for particular virtual goods.
According to Reddit, its product and engineering team also holds cryptocurrencies for experimental purposes for its future virtual payment service but the company failed to disclose the actual amount of holdings.
In this phase of crypto & blockchain development, Reddit is not 100% sure whether they will get better community support for their such plans or not.
The valuation of this giant social media platform was $10 billion in 2021 but later plunged significantly. In Jan 2024, Bloomberg reported that the company’s valuation crashed by nearly 50%.
Read also: Allegedly former UK PM asked $1 million Bitcoin (BTC) for an interview
