Reddit has announced a new $50m funding round that could lead to a unique way for the social network to give back to its community – its own cryptocurrency.
In a post on the company’s official blog, CEO Yishan Wong revealed Reddit had secured funding from a number of well-known venture capitalists and VC funds.
Perhaps most notably for the digital currency community, however, was that all of these investors agreed to set aside 10% of the round’s proceeds to give back to the community.
Wong wrote that the move was a recognition of the central role the digital currency community has played in Reddit’s ongoing success, but provided few details on the company's potential plans.
When asked by CoinDesk to elaborate on the concept, Wong said only:
The use of digital currency as an ownership token, has long been held as a future use case for block chain technology in general, and the concept is a focal point for many crypto 2.0 projects and frameworks.
Still, Reddit isn't the only major company to announce it intends to experiment with the emerging technology, following similar statements from Overstock in July.
In comments posted on the r/blog subreddit, Wong was more detailed, saying that the company may seek to create a special-purpose cryptocurrency that would be backed by the value of the shares created during the $50m funding round.
Wong added that he feels the idea is worth the attempt given its potential benefits for site users, but that the company hasn't moved beyond the initial exploration phase with the idea.
Among those who took part in Reddit’s $50m round are some investors who would no doubt be receptive to the company's use of block chain technology.
According to Wong, the caliber of investors Reddit has attracted reflect its long-standing commitment to free speech and open Internet activity.
Image via Reddit
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.