Wow, Who Could Have Guessed? Reddit Dabbles in Bitcoin and Ethereum?
“I believe you have to be willing to be misunderstood if you’re going to innovate.” — Jeff Bezos
Well, well, well, it seems that the social platform Reddit has finally decided to dip its toes into the vast ocean that is cryptocurrency. In a recent twist of events, Reddit has revealed its rather unsurprising investments in both Bitcoin and Ethereum. As the platform gears up to go public, a filing with the Securities and Exchange Commission (SEC) has unveiled Reddit’s foray into the crypto space. The move comes as no surprise, considering the ever-growing popularity and mainstream adoption of cryptocurrencies.
The filing detailed Reddit’s decision to allocate a portion of its excess cash reserves to purchase Bitcoin and Ethereum, the two flagship cryptocurrencies in the digital asset realm. However, Reddit has remained tight-lipped about the exact amount it has invested in these digital assets. Additionally, the platform disclosed its acquisition of Polygon (MATIC) as a mode of payment for virtual goods, signaling its exploration of alternative means of transaction beyond traditional fiat currency.
According to the filing, Reddit expressed its interest in experimenting with blockchain technology by utilizing ETH and MATIC for the sale of specific virtual goods. Although the platform acknowledged the potential of blockchain-related technologies, it seemed uncertain about the long-term adoption and acceptance of cryptocurrencies and blockchain by both consumers and businesses.
This move marks Reddit’s continued engagement with digital assets, dating back to 2020 when it introduced Moon and Bricks tokens on Ethereum’s testnet. Moreover, the platform ventured into the realm of non-fungible tokens (NFTs) by launching an NFT avatar initiative on Polygon, collaborating with artists to sell and distribute customized versions of the iconic Snoo mascot.
Reddit’s S-1 registration divulged that the platform incurred net losses of $90.8 million in 2023, despite reporting a 20.6% increase in revenue to $804 million year-on-year. This financial upheaval led to a decrease in Reddit’s valuation, as it was predicted to achieve only half of its 2021 valuation, according to a Bloomberg report.
Despite Reddit’s previous involvement with cryptocurrency, such as its blockchain-based rewards program, which was later discontinued due to scalability concerns, the platform has maintained its interest in digital assets. As the cryptocurrency market continues to evolve, it remains to be seen how Reddit’s investment and engagement in the crypto space will unfold in the future.
In conclusion, Reddit’s revelation of its investment in Bitcoin and Ethereum, as well as its experimentation with MATIC and ETH for payment, serves as a testament to the growing influence and allure of cryptocurrencies in the mainstream. As the digital asset landscape continues to evolve, it is a matter of time before more traditional entities follow suit and embrace the potential of cryptocurrencies and blockchain technology. After all, in the world of finance, it seems that no stone is left unturned, and no trend is left unexplored.
