Given that digital cryptocurrencies are particularly popular these days, the well-known social network Reddit is reportedly preparing the launch of its own "cryptocurrency".
After announcing a new $50 million funding round, the company said it plans to return 10% of investor shares to the community. No further details were provided in the company's initial announcement, but Yishan Wong, Reddit's CEO, added some additional information about how this might be accomplished.
“We are thinking about creating a cryptocurrency, which will be fungible and backed by Reddit shareholders. We will then distribute the cryptocurrency to the community. Investors have explicitly agreed to this, in the investment terms,” Wong said.
He continued by saying that nothing like this has ever happened in the past, which means they need to analyze how to proceed properly with each step, both from a technical, legal, and financial perspective.
The company is likely planning to create a system that will allow community members to donate coins to other users using comments or private messages. The company is also reportedly working out the details of how shares will be converted into cryptocurrency and how community members will be rewarded for their activities.
