Recently, Vitalik Buterin, the founder of Ethereum, expressed appreciation for the Reddit IPO.
At the same time, he expressed some perplexities regarding the restrictions, praising the participation of investors, but expressing disappointment towards the limitations.
Let’s see below all the details.
Vitalik Buterin’s comments on the restrictions in Reddit’s IPO
As anticipated, Ethereum co-founder and developer, Vitalik Buterin, has praised Reddit for choosing to involve contributors in the upcoming initial public offering (IPO).
However, he expressed disappointment at the restrictions imposed by US regulations on Reddit contributors.
Buterin, known within the cryptographic community, has highlighted the significant contributions of cryptocurrency enthusiasts and investors from around the world on Reddit.
The platform is an important place for interaction, discussion, and sharing of news within the cryptographic community, hosting numerous subreddits dedicated to projects, tokens, and companies related to cryptocurrencies.
In response to an email from Reddit, Vitalik Buterin praised the platform’s experiment on collaborator participation, but expressed sadness about the limitations imposed by US regulations.
He emphasized that this restriction is completely attributable to current regulations, not to Reddit itself, but admitted that this situation has caused him a sense of sadness.
Buterin has represented the cryptographic community, emphasizing the opportunities provided by the cryptographic industry in the global economy.
His comments came following the Directed Share Program (DSP) by Reddit, which allows eligible users and moderators to purchase shares at discounted prices like institutional investors during the IPO.
However, he has noticed with regret that this opportunity is limited to residents in the United States and has vigorously proposed a rotation model for community contributions.
Reddit’s investments in Bitcoin and Ethereum
Reddit has also disclosed its investments in Bitcoin and Ethereum in the initial public offering document, indicating a clear inclination towards blockchain technology.
The investment policy, approved by the board of directors, aims to reduce risk through investments in cryptocurrencies, presumably classified differently from securities by regulatory authorities.
The IPO, postponed for several years, is now expected in a few months, with the official presentation taking place on February 22, 2024.
Residents in the United States must provide details such as social security number or permanent residence number to participate, and the use of VPN may cause issues due to the restrictions applied.
Furthermore, access to the Directed Share Program (DSP) is limited to non-current or former employees of Reddit.
Meanwhile, the price of Ethereum (ETH) has exceeded $3,500 ahead of the Ethereum Dencun update.
With a 4% increase, the price of ETH has followed the positive trend of Bitcoin, which has surpassed 65,000 dollars.
Reddit and Google intensify collaboration: focus on AI and content visibility
Recently, Reddit and Google announced a strengthened collaboration, focused on integrating new features based on artificial intelligence using Vertex AI.
Google has stated the following:
“We are pleased to announce a new Cloud partnership that allows Reddit to leverage Vertex AI to enhance search and other functionalities on the platform.”
The collaboration will allow Google to efficiently access the vast content of Reddit, using the Reddit Data API to improve its products and services, including new ways to display Reddit content and provide more efficient services.
The goal of Google is to use the rich data generated by the approximately 70 million daily active users and 850 million monthly users on Reddit to train its artificial intelligence models.
Reddit, on the other hand, plans to take advantage of the visibility offered by Google products, with the goal of highlighting Reddit-based content prominently in Google search results.
This partnership is seen as a mutual benefit.
Reddit provides Google with valuable data for training models, while Reddit, with the increased visibility offered by Google, could promote the growth of its platform, making it easier for users to discover new communities and relevant content.