According to reports from Reuters, Reddit is launching its IPO and for that, it needed to hire bankers and lawyers.
The Initial Public Offering will be launched in New York State. Last month, the company was valued at $10 billion, against a $410 million raise.
A spokesperson for the company explained that Reddit is still hoping to raise and reach 15 billion.
A few days ago in the New York Times, Steve Huffman, CEO and founder of Reddit, had also explained that the company wants to launch on the stock market, but again, the timing and size of this IPO have not been revealed.
Reddit would have reported $100 million in revenue and advertising in the second quarter of 2021. As for the user base, at the end of 2020 there were 52 million daily active users. These mind-boggling numbers could also drive mass adoption of cryptocurrencies, given the company’s interest in making its own tokens.
Reddit and the crypto world
In May 2020, Reddit had decided to launch its community points in the form of Ethereum-based tokens on Arbitrum, which is a layer 2 solution to avoid the high fees and low scalability of the main chain.
In this sense, Reddit could be the second to launch its own IPO after Coinbase, the US exchange that had listed itself as COIN and is now up 4% over the last 24 hours.
From GameStop to new investors
We have often heard about Reddit, especially in connection with the GameStop case at the beginning of the year. The platform was the trigger for a wave of traders who began to organise themselves to buy shares in the American company specialising in the sale of video games.
It is clear that the echo is now going much faster and that the new legal and banking target is finding many followers ready to support the new operation that should see the light in 2022. Much importance, in this case, is due to the media hype that tends to influence possible investors. Among the most important names financing Reddit are Sequoia Capital and Tencent Holdings.