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Reddit Ventures into Cryptocurrency, Filing Discloses Dealings in Major Cryptocurrencies

According to a recent Initial Public Offer (IPO) filing, Reddit, one of the most prominent social networking sites, has taken a big step into the cryptocurrency space. Reddit’s exposure to Bitcoin (BTC), Ethereum (ETH), and MATIC was disclosed in the report, indicating the company’s expanding interest in digital assets.

Bitcoin and Ethereum were the only cryptocurrencies kept in Reddit’s treasury as of December 31, 2023. Conversely, Ethereum is renowned for its smart contract features and thriving decentralized application (dApp) ecosystem.

The move by Reddit to keep Bitcoin and Ethereum in its treasury has been said to have aligned with a larger pattern in which businesses are putting more of their assets into cryptocurrencies. Reddit intends to preserve its wealth and profit from the future growth of these digital currencies by investing a portion of its treasury in Bitcoin and Ethereum.

Reddit Explains Reason Behind it’s Decision, Forecasts Profitable Future 

Launching these tokens was a component of Reddit’s larger initiative to test tokenization and Decentralized Finance (DeFi) among its users. Reddit’s embrace of cryptocurrencies has been explained by the cryptocurrency community  to be timely.

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This is coming at a time when there has been an increasing use and acceptance of digital assets in various industries. Reddit has disclosed its cryptocurrency holdings at a time when interest in the market is at an all-time high.

Brenda Ngari, a market watcher from the Zycrypto platform, has commented on this trend, saying that Reddit’s decision to add these digital assets to its treasury shows how confident it is in its long-term sustainability and growth potential. 

📰 Also read:  HSBC Unveils Tokenized Gold Targeting Hong Kong-based Retail Customers 

Reddit’s Ambition Expected to Change the Cryptocurrency Space

Reddit’s exposure to MATIC, the Polygon network’s native currency, demonstrates its awareness of up-and-coming blockchain initiatives and layer two scaling options. Due to its capacity to increase Ethereum’s scalability and reduce transaction costs, Polygon has gained popularity.

It is now popular among developers and consumers looking for effective blockchain solutions. Reddit’s future course is expected to be shaped by its strategic investments and ambitions in cryptocurrency as it continues to negotiate its way into the world of cryptocurrencies.

Brenda has expressed his hopes that Reddit’s engagement in the cryptocurrency industry will grow as cryptocurrencies continue to acquire traction among the general public, creating new avenues for innovation and expansion. In an S-1 filing by Reddit, the company said it is currently experimenting with blockchain technologies.

It also said that it has a massive future in blockchain and cryptocurrency technologies. News also has it that Raddit has been working with Google to come up with a plan thst allows the m use Google’s contents to train it’s AI model. This deal will be costing Raddit around $60 million per annum. 

Reddit Declares $804 Million in Total Sales, Eyes the NYSE

Reddit strengthened its cryptocurrency sector in 2020 by launching the Bricks and Moons token on the Ethereum blockchain platform. From the structured asset’s design, investors in the project get either of the tokens (Bricks or Moons) as a reward and will be free to spend them for any particular benefit.

📰 Also read:  Crypto Advocacy Groups Support Tornado Cash Developer Roman Storm

Reddit had to stop the blockchain cryptocurrency service in November of the same year, associating it with problems with regulation and scalability. In 2023, the social media forum has declared almost $804 million in total sales, representing a 20.5% year-on-year (YoY) increase.

The company’s profitability has been described as a pipeline dream, considering its total loss of  $91 million in 2023. Also, Reddit is looking to start trading on the New York Stock Exchange (NYSE) by March 2024.

In its official statement, as reported by Zycrypto, the company acknowledged that the introduction of blockchain and cryptocurrency technology has a huge role to play; the relevance and its popularity, which have been severally proved in its current trend, will continue to be adopted by both individual traders and businesses, but still not sure about its long-term prospect.


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📰 Also read:  HSBC Unveils Tokenized Gold Targeting Hong Kong-based Retail Customers 

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Brenda Collins

Brenda Collins is a seasoned crypto news writer with a deep passion for blockchain technology and its transformative potential. With years of experience in the industry, she has honed her skills in delivering concise and insightful analysis, making complex concepts accessible to a wide audience. Brenda's dedication to staying up-to-date with the latest developments in the crypto world ensures her readers receive accurate and timely information.

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