TL;DR
- Reddit acquires BTC, ETH, and MATIC ahead of public share offering: The social media giant has filed a registration statement with the SEC to list its Class A common stock on the NYSE under the symbol $RDDT.
- Reddit integrates Polygon’s blockchain for the NFT system: The company has adopted Polygon’s technology to enable features like buyable profile picture avatars and member rewards in the form of NFTs.
- Reddit rewards loyal users with priority access to shares: The company plans to allocate some of the shares using a hierarchical system based on member activity, starting with users and moderators who have made significant contributions to Reddit community programs.
Reddit, one of the world’s largest social networks, has announced its acquisition of Bitcoin (BTC), Ether (ETH), and Polygon (MATIC) ahead of its public share offering. The company has filed a registration statement with the U.S. SEC for a Class A common stock application on the New York Stock Exchange.
JUST IN:
Reddit has invested its excess cash reserves in #BitcoinIt's just getting started 🚀 pic.twitter.com/082krriUdb
— Vivek⚡️ (@Vivek4real_) February 22, 2024
The application symbolized as $RDDT, will allow Reddit users to publicly purchase shares of the social media giant if approved. The 230-page report submitted to the SEC revealed significant information about Reddit’s cryptocurrency holdings.
“We hold cryptocurrencies and experiment with blockchain technology, which may subject us to exchange risk and additional tax, legal, and regulatory requirements,” the application states. The executives at Reddit have announced that they have Bitcoin (BTC), Ether (ETH), and Polygon (MATIC).
Reddit’s Integration of Polygon’s Blockchain for NFT System
Reddit has integrated Polygon’s blockchain for its inherent NFT system, which includes features like buyable profile picture avatars or member rewards in the form of non-fungible tokens (NFTs). However, the announcement also suggested that only Bitcoin (BTC) and Ethereum (ETH) are maintained “for treasury purposes”.
In an innovative approach to launching Reddit shares to the masses, the social media company plans to allocate some of the shares using a hierarchical system based on member activity. This strategy aims to reward users for loyalty but admits the plan comes with its own risks.
The priority list begins with “specific users and moderators recognized by us for their significant contributions to Reddit community programs.” This is followed by an additional list of users who are eligible to purchase some of Reddit’s shares before the public release. To be included in this category, Reddit users need to fulfill a criterion of accumulating a minimum of 2,000 karma points.
This move from Reddit to reward its community members with the opportunity to buy shares at IPO price has received mixed reactions from the crypto community. While users having the option to acquire shares from a pool is still far from the Web3 model of airdrops and retroactive funding, it’s good to see Reddit choosing to reward users who have helped build the community.
