Hold onto your hats, folks! Reddit, the social media giant that once had its roots firmly planted in the crypto world, has decided to shake things up a bit. The company, known for being a hotbed of crypto discussions and innovations, has unloaded a chunk of its digital treasure chest, signaling a shift in its crypto strategy.
In an eyebrow-raising move, Reddit cashed in most of its Bitcoin (BTC) and Ethereum (ETH) stash in the third quarter of 2024, pocketing a cool $6.87 million. This cash infusion was just the ticket Reddit needed to finally break even, turning a profit for the first time in its 19-year journey, hitting the jackpot with a net of nearly $30 million!
This crypto adventure began when Reddit, in its February 2024 IPO filing, confessed to playing the crypto field with some of its spare change, dabbling in big names like BTC, ETH, and Polygon (MATIC). The ETH and MATIC, they said, were mainly for buying virtual goodies.
But wait, there's more! Reddit's love affair with crypto isn't new. Back in the day, it was one of the first to embrace blockchain technology. Remember 2013? Reddit let users pay for premium memberships with crypto! Fast forward to 2020, and they rolled out an Ethereum-based Community Points system with tokens like MOON and BRICK to reward subreddit contributions.
Then came the “Vault,” a blockchain-based wallet for managing those tokens and other digital collectibles. Oh, and let's not forget the Polygon-powered NFT avatars launched in 2021.
However, the winds of change are blowing. In recent filings, Reddit admitted to having a slightly more cautious view on the future of crypto. While they see its “significant potential,” uncertainties about its long-term adoption have them treading carefully. They've tightened the reins on crypto investments, requiring board approval for any future buys, sticking to the likes of Bitcoin, Ethereum, and other non-security tokens.
The Community Points system? Well, that ship has sailed, citing scalability woes as the culprit. And crypto payments? They've quietly exited stage left, as Reddit scales back its blockchain experiments.
In a twist of fate, Reddit's decision to step away happened right before Bitcoin's dramatic rally, nearly reaching its all-time high of $73,737. Talk about timing! So, what's next for Reddit? Only time will tell, but one thing's for sure – they're not afraid to mix things up!
