Reddit will not abandon Bitcoin, but this social platform quickly made headlines in the cryptocurrency world after it dropped the bomb on its initial plans to propose its own cryptocurrency.
The Reddit crypotcurrency, however, will not compete against any other cryptocoins in the market nor will it primarily serve as a global payment system. In fact, not much is known or concrete about this project except that it may function as the means for redditors to own shares of the company.
Yes. This website that has proven useful for Bitcoin casino enthusiasts is opening its doors to its loyal clients by allowing them to own a part of Reddit. This announcement was made after the company had a $50 million fundraising round led by Sam Altman, a renowned venture capitalist and president of Y Combinator.
Reddit CEO Yishan Wong announced on Redditblog that anyone in the Reddit community may likely buy shares through the initiatives of the investors, stating:
“Led by Sam, the investors in this round have proposed to give 10% of their shares back to the community, in recognition of the central role the community plays in reddit’s ongoing success. We’re going to need to figure out a bunch of details to make it work, but we’re hopeful.”
As if not running out of creative ways to finally give this goal the green light, the concept of creating Reddit’s very own cryptocurrency was conceived.
Wong, however, was quick to warn the community that nothing about this plan is final:
“CAVEAT: KEEP IN MIND THAT THIS PLAN COULD TOTALLY FAIL. We are thinking about creating a cryptocurrency and making it exchangeable (backed) by those shares of reddit, and then distributing the currency to the community. The investors have explicitly agreed to this in their investment terms.”
Moreover, redditors may have to wait for a while before the Reddit cryptocurrency will become available since numerous factors must be considered first in order for it to operate smoothly. Nevertheless, Wong assured that this process is legal, as per an ex-SEC lawyer.
Although the exact percentage of the Reddit shares that will be open to the community is not divulged yet, with Reddit’s role in the free Bitcoin casino and mobile Bitcoin casino markets, many online bettors are expected to buy some shares, especially when the social platform is gearing up to add more anecdotes in its success story.
Reddit, specifically through subreddits r/Bitcoin and r/Gambling, has become the alternative source of information, opinions, and anything in between aside from the Bitcoin forum, Bitcointalk.