- Reddit applies to get their public shares listed on the New York Stock Exchange.
- Reddit’s staff reveals ownership of Bitcoin (BTC), Ether (ETH) & Polygon (MATIC).
- Reddit plans to prioritize loyal members before launching $RDDT to the public.
Reddit, one of the world’s largest social networks, has filed a registration statement to the U.S. Securities and Exchange Commission (SEC) regarding a Class A common stock application on the New York Stock Exchange. Under the symbol $RDDT, Reddit’s users can publicly purchase shares of the social media giant if the application form is approved.
In the 230-page report to the SEC, Reddit’s staff unearthed important information regarding their cryptocurrency holdings. Reddit’s application states: “We hold cryptocurrencies and experiment with blockchain technology, which may subject us to exchange risk and additional tax, legal, and regulatory requirements.”
Moreover, Reddit’s executives declared that they have been holding Bitcoin (BTC), Ether (ETH), and Polygon (MATIC). While Polygon’s blockchain has been adopted in Reddit for the in-built NFT system, such as purchasable profile picture avatars or rewards for members in non-fungible tokens (NFTs), the statement also inclined that only BTC and ETH are held “for treasury purposes.”
Reddit To Reward Most Loyal Members
As a part of the plan before launching the Reddit shares to the masses, the social media company aims to allocate some of the shares using a hierarchical system based on member activity. By doing so, Reddit aims to reward users for loyalty but admits the plan comes with its own risks.
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While the priority list starts with “certain users and moderators identified by us who have meaningfully contributed to Reddit community programs,” this will follow with a secondary list of users who can acquire some of Reddit’s shares before the public launch. To fall into this category, Reddit users must meet the requirement of at least 2,000 karma points.
However, the strategy has caused some backlash from crypto enthusiasts on Twitter. Ryan S. Adams, a crypto trader with 235K followers, expressed his disappointment: “The people who make Reddit what it is – aren’t getting equity, they’re getting the * ability to buy * Reddit shares at IPO price?”.
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Nevertheless, many Reddit users praised the move, even though this type of prioritized share issuance is considered “far from the Web3 model of airdrops” by experienced Web3 professionals.
On the Flipside
- In the public shares application form, Reddit also states that their team’s investing in crypto is limited to Bitcoin (BTC) and Ether (ETH), unless other crypto currencies have been identified by the SEC or Commodities Futures Trading Commission as “likely not a security”.
Why This Matters
Reddit is the largest pro-crypto social network besides X, previously known as Twitter. Reddit hosts over 138,000 active communities and has over 62 million daily active users.
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