Social media platform extends U-turn on digital assets as crypto sell-off marks latest move in pullback from the space.
Posted October 31, 2024 at 1:37 am EST.
Social media platform Reddit sold all of the bitcoin and ether it was holding for treasury purposes during the third quarter of this year — a quarter that saw the company turn its first profit since it was founded 19 years ago.
Reddit pocketed $6.87 million from the sale of its BTC and ETH as it reported a third-quarter profit of $29.9 million, although it said the gain recognized on the sale was “immaterial” to its Q3 results.
“While we believe cryptocurrencies and blockchain technology have significant potential, the popularity and prevalence of cryptocurrencies is a relatively recent trend, and whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term is uncertain,” Reddit said in its 10-Q filing to the U.S.Securities and Exchange Commission.
Reddit has long been a venue for cryptocurrency discussions, with numerous “subreddit” forums dedicated to Bitcoin, Ethereum, and other digital assets.
Reddit began allowing users to pay for premium memberships using cryptocurrencies in 2013, but its first major foray into digital assets came when it launched its Community Points system in 2020.
The system introduced two Ethereum-based tokens, MOON and BRICK, designed to incentivize user participation in specific subreddits by rewarding users with tokens for their contributions.
In 2021, Reddit launched a blockchain-based wallet named “Vault” to hold community points and collectibles, and the following year it introduced Polygon-based collectible NFT avatars.
Since then, however, the company seems to have changed its tune, and has started phasing out blockchain-based initiatives including its acceptance of crypto for payments and the Community Points system, which it shut down last November, saying it was no longer scalable.
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