Reddit Plans to Create Own Cryptocurrency

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News and networking community reddit is living up to its tech-savvy reputation as the “front page of the internet”, with plans to launch its own cryptocurrency using its latest round of venture capital funding. In a post on the website’s official blog, CEO Yishan Wong explained that that reddit has had the concept in development for some time. The project is finally going public because the company has just secured 50 million dollars, much of it from well-known figures. They range widely, with some of the most well known being angel investor Mark Andreessen, Snoop Dogg and actor Jared Leto.

Reddit plans to use this round of funding, among other things, for product development, to build custom tools for the website and for the development of a new cryptocurrency. Wong explains,

“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”.

Reddit is hoping that this cryptocurrency will be able to survive in an alternative currency landscape where altcoins typically experience extreme fluctuations in value. Reddit hopes to circumvent this fate by backing their currency using shares of the website, as this gives the coin a larger chance of maintaining its value over time. The development of this currency, if successful, would be another way to give reddit’s users a way to buy into the website they love, strengthening community ties.

This move also serves as a recognition of the role that reddit has played in the success of bitcoin, serving as a primary news source for breaking cryptocurrency news and as a forum to discuss bitcoin technology in abstract.

Wong states in his blog post that the development of this proposed cryptocurrency is far from a certainty, with many serious technological and legal issues yet to be worked out. However, if the cryptocurrency proves to be successful, it could become an innovative way for communities, particularly those with philosophies like reddit, to deliver value to their members.

 

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