Reddit reduces the number of cryptocurrencies on its account
October 31, 2024
The social media giant has significantly reduced its cryptocurrency holdings, as stated in a report recently published by the U.S. Securities and Exchange Commission.
In the third quarter of 2024, the company sold off most of its BTC and ETH, liquidating them ahead of the recent surge in the value of digital gold.
Nevertheless, Reddit chose to divest its cryptocurrency assets when the price of BTC was fluctuating between $54,000 and $68,000.
Investment stance
Initially, the electronic assets were acquired as an investment of excess cash but were later characterized as non-essential.
At the same time, the company's historical involvement in the cryptocurrency space remains substantial.
Adoption of crypto technologies
Reddit has actively integrated blockchain to engage with users: from introducing community tokens like Moons to collectible avatars based on Polygon.
Thus, the company was among the first to experiment with these tools.
Investment policy restrictions
In recent months, the company has gradually stepped back from its cryptocurrency initiatives. Currently, Reddit's investment policy requires board approval for future crypto investments, imposing restrictions on Bitcoin, Ethereum, or other assets that may be classified as securities.