Reddit, a popular social networking platform, recently announced its intention to go public next year, 2022 through an initial public offering (IPO).
Reddit announced in an official statement that it has submitted a confidential Form S-1 to the Securities and Exchange Commission of the United States (SEC).
Reddit Starts Making Plans to Become Public
Reddit did not give any other details on the case but did say that it had begun filing papers with the Securities and Exchange Commission (SEC) in preparation for an IPO next year.
Due to regulatory concerns, the business has withheld additional information concerning its first public offering.
A platform that is Crypto-Friendly
The company raised $700 million in a Series F investment round earlier in August 2021, boosting its valuation to $10 billion as a result of the capital inflow.
Reddit has continued to witness an influx of users as it embraces cryptocurrency in its daily operations, despite its small size compared to other leading social media platforms like Twitter and Facebook.
The number of daily active users has exceeded 50 million, with a total of 430 million monthly users. According to current figures, the number of subreddits on Reddit has surpassed 100,000.
Reddit is doubling down on blockchain technology
For two subreddits, the social media website has integrated cryptocurrencies in the form of community points. The MOON and BRICK tokens, which are based on the Ethereum blockchain, allow users to receive incentives for posting and discussing on the network.
Users can use their points to purchase memberships and vote in weighted polls, among other things.
Following the launch of Community Points, Reddit increased its commitment to the blockchain by cooperating with the Ethereum Foundation to improve scaling and open-source development.
Notably, Reddit is home to the popular Wall Street Bets joke stock group. It shot to fame earlier this year, 2021 when it’s over 10 million members caused a stock market meltdown at GameStop, an American video game retailer.
The group’s actions had a significant impact on the values of cryptocurrencies as well as regular stocks.