In its latest funding round, the chat community site pulled in an unasked-for $410 million as it seeks to scale it Community Points token initiative.
When a company like Fidelity comes calling with a wheelbarrow full of money, it's hard to avoid the conclusion that you’re doing something right.
That’s the position Reddit found itself in recently after the financial services giant approached it with another $410 million funding round — hard on the heels of the quarter-billion dollars it raised in February — upping its valuation to $10 billion and giving it more leeway in timing its planned IPO.
With 50 million daily visitors and $100 million in quarterly ad revenue, Reddit is booming. But the company that Huffman describes as having grown up “in the shadow of Facebook and Google” still needs to up its game to move up the ranks of the social media industry.
One of the ways it’s doing that is with its Ethereum-based cryptocurrency rewards program, Community Points.
While still limited to just a few of its 100,000-plus subreddit communities — r/CryptoCurrency, r/EthTrader and r/FortNiteBR — the company’s foray into cryptocurrency has a long way to go.
But it is pushing ahead, having announced in July that it had selected Arbitrum as the winner of its Scaling Bake-Off to choose a platform to grow Community Points throughout the subreddit ecosystem.
r/CryptoCurrency’s Moons had an initial distribution last year of 50 million tokens to existing users based on Karma, with monthly distributions thereafter starting at five million and decreasing by 2.5% each month until the subreddit hard cap of 250 million is reached.