Reddit Planning to Launch its Own Cryptocurrency

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Reddit Planning to Launch its Own Cryptocurrency

ForexMinute.com – It might be the first time in history when a social networking IPO has decided to launch its own cryptocurrency for community welfare. This innovation comes with Reddit, probably the world’s most adorable social networking and news website, which recently decided to give 10% of its shares to the very community which built it – the millions of it users. The website therefore agreed on introducing a private cryptocurrency backed by the aforementioned shares.

To meet this aim, Reddit has raised a whopping $50 million in funding from Y Combinator president Sam Altman, with participation from Alfred Lin of Sequoia Capital and Marc Andreessen of Andreessen Horowitz. Incidentally, Altman was also one of the helping hands in launching Reddit, admitted CEO Yishan Wong. He has been an active follower since the launch of this website and leaving no-stone-unturned to boost it to another level, Wong added.

This one investor is also known for its important role in building Bitcoin companies like Coinbase and BitAccess. He has hosted a number of other digital currency startups as well.

Other investors that have lined up to help Reddit launch this new cryptocurrency is PayPal co-founder Peter Thiel, hip-hop artist Snoop Dogg, actor Jared Leto, Y Combinator seed partner Jessica Livingston, Eventbrite founders Kevin and Julia Hartz, Minted founder Mariam Naficy, angel investor Joshua Kushner, and Wong himself.

Although the Reddit CEO shied away from giving more details on this upcoming project. He although admitted it to be a little complex, requiring “to figure out a bunch of details to make it work”. The man is hopeful though that a suitable roadmap will soon be given to the community, explaining how they intend to distribute the share-backed cryptocurrency to its users.

He said:

“We are thinking about creating a cryptocurrency and making it exchangeable (backed) by those shares of Reddit, and then distributing the currency to the community. The investors have explicitly agreed to this in their investment terms.”

The involvement of trustable names like Reddit is sure enough to generate positive buzz for this domain. We can thus expect other biggies using the booming Bitcoin 2.0 technology in the future as well – Google, will you?

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com