Crypto-loving social media platform Reddit filed to go public via an initial public offering in 2022 as we can see more today in our cryptocurrency latest news.
In an official announcement, the company noted that it has submitted a form S-1 with the United States Securities and Exchange Commission. Reddit as a crypto-loving social media platform, didn’t disclose further information about the proceedings but noted that it started the paperwork with the SEC for its IPO next year. The company noted that it refrained from sharing more details about the public offering because of regulatory reasons:
“The number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.”
Earlier in August, the company raised $700 million in a Series F funding round that saw its valuation reach $10 billion after the cash injection. It is quite small compared to other top social media platforms like Twitter, Reddit, and Facebook which continued to see an influx of users as it adopts cryptocurrencies in its daily operations. The number of daily active users increased above 50 million as the monthly user base stands at 430 million. The social media platform integrated crypto in form of community points and the tokens are dubbed BRICK and MOON which are also built on the Ethereum blockchain and allow users to earn rewards from commenting and posting on the network. The crypto-loving platform allows users to spend their points on different services including purchasing memberships and voting on polls.
After the launch of Community Points, Reddit doubled down on the blockchain technology as it partnered with the Ethereum foundation to enhance scaling and open source development. Reddit houses the popular meme stock group Wall Street Bets and it became very popular this year when over 10 million users created a frenzy in the stocks of the video game retailer GameStop. The action had a huge influence on the prices of crypto as well as the traditional stocks.
As recently reported, The social media platform Reddit announced it will be using the scaling solution Arbitrum to handle scaling of the ETH-based community points system. In the latest announcement, Reddit administrator said that the platform launched its own layer-2 rollup using Arbitrum technology for the rewards points. The platform said it deployed the layer 2 solutions on the Rinkeby testent before it plans to migrate on the Ethereum mainnet.
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