The social network Reddit has a foot in bitcoin and ether

In its IPO filing, the social network indicated that it had placed part of its excess cash reserves in bitcoin and ether.

This Thursday, February 22, the social network announced its IPO (initial public offering) plan on Wall Street. This event risks being one of the most exciting IPOs in American tech this year and could coincide with a coup on the cryptocurrencies side. Indeed, the stock market has an appetite for this type of initiative and wants its share of the pie of the community dynamics of social networks, of their impact on the advertising market and on that of data ©es.

With Reddit, we’re right in the thick of it, since the network is focused on discussion forums and also already has a foot in cryptocurrencies. You should know that Reddit had created one, called Moon, which was at the center of a rewards system for subscribers to the site in order to encourage them to interact and comments. But after several years, the cryptocurrency failed to take off and Reddit decided to sell its token to other investors.

Bitcoin and ether in his treasury

On the other hand, the interesting information in its IPO document is that Reddit has placed part of its excess cash reserves in bitcoin and ether. The group also revealed that it had made investments in the blockchain, to experiment with transactions involving virtual assets, in particular with the matic cryptocurrency (Polygon).

Reddit is not the only American company to hold bitcoin and ether in its treasury. Elon Musk’s Tesla company and Jack Dorsey’s MicroStrategy are also in this niche. On the other hand, a question arises: does the social network Reddit intend to beat Facebook and X by being the first to allow its users to make transactions and payments in cryptocurrencies?

This will be one to follow closely due to the multi-community nature of Reddit and the viral dynamics that this implies.