Reddit, the interactive social media network, said earlier this week that it has filed for an IPO with the US Securities and Exchange Commission to allow the general public to participate in the company. They further stated that, despite having completed the IPO application, they trusted solely with the SEC.
Reddit intends to make its stock available for public purchase
Yesterday, Reddit, the home of two digital assets, Moons and Donuts, filed for an IPO with the Securities and Exchange Commission (SEC). However, the firm chose a strategy that would keep trolls until the SEC made its final ruling. The business filed for its IPO in private and did not provide any more information on the number of public shares or their price ranges.
The social media network has over 100k active online communities and serves over 52 million people every day. These users tip each other with Reddit tokens and assist with various administrative tasks on the network. Redditors may also use these tokens to customize their profiles and exclusive access features on the network.
The necessity for Reddit to pursue an IPO and SEC listing might be due to imminent cryptocurrency regulatory uncertainty. The crypto market is now in question since no one knows what will happen in the future in terms of the regulation of these assets. As a result, many crypto companies concentrate on lowering the dangers of ‘unfair’ regulation.
Due to regulatory concerns, eToro stopped trading ADA and Tron for US persons in November 2021. However, it’s time to see if the same anxieties drive Reddit.
Reddit Reveals Its Long-Term Investment Strategy
In 2005, Steve Huffman, Alexis Ohanian, and Aaron Schwartz co-founded Reddit. The firm expanded over time due to its distinctive meme-stocks and chat groups, which helped it outperform other social media behemoths. However, the corporation has never attempted to go public despite reports to the contrary.
The first indicator of Reddit going public occurred in March 2021, when it recruited Drew Vollero as its first CFO. Drew was Snap’s CFO when the firm decided to go public. However, the corporation followed ‘custom’ and withheld information about his position there.
In August, Reddit raised $700 million in a financing round, bringing its market valuation to $10 billion. In addition, the corporation stated that it received $100 million in the second quarter of 2021. This sum is around 192 percent of what it earned in the same period in 2020. Reddit said in September that it was recruiting specialists to assist with the IPO but provided no other specifics.
However, its CEO, Steve Huffman, stated that the company would go public at some point, though he did not provide a timeframe. So whether Reddit’s move is motivated by a fear of regulation or not, only time will tell.