Reddit, a prominent social media platform, is planning its IPO in March, intending to sell about 10% of its shares following its $10 billion valuation in 2021.
The platform’s recent foray into nonfungible tokens (NFTs) has been a key highlight, attracting significant user engagement. Despite this success, there’s a diverse range of opinions among Reddit users regarding the platform’s cryptocurrency ventures.
While some users appreciate the innovation, others are concerned about potential changes in the platform’s direction post-IPO, particularly regarding its cryptocurrency and NFT features.
Reddit’s foray into cryptocurrencies and NFTs expanded its reach, as its NFTs were auctioned and attracted attention from prominent individuals and businesses for various purposes. Additionally, Reddit facilitated the collection of digital currencies, introducing a cryptocurrency named Moons.
The NFTs and digital tokens quickly became popular, drawing interest from users and enthusiasts across various platforms. However, Reddit’s postponed IPO raised concerns about its profitability. Over the past three years, the platform has influenced several surges in ‘meme’ stocks. A successful IPO could potentially restore investor confidence and positively impact the value of Reddit’s NFTs and cryptocurrencies.
As Reddit prepares for its IPO, marking the first significant social media IPO since Pinterest in 2019, it continues to balance its traditional role as an online discussion forum with its newer technological ventures. Founded in 2005, Reddit has a long-standing history of adapting to technological trends, including recent expansions into web3 and artificial intelligence.
Financially, Reddit’s main revenue sources are advertising and premium subscriptions, with the company projected to earn around $800 million in advertising revenue in 2023. Although the company has set a timeline for a March IPO, Reuters notes that this could change based on various factors. The decision to go public aligns with Reddit’s strategic move towards profitability.