Steve Huffman, co-founder and chief executive of Reddit, commented on the company’s recent investment round, which valued the company at $10 billion.
Since its most recent investment round in February, the popular social media platform Reddit has seen its market capitalization increase by $4 billion.
Six months ago, the company raised $250 million in Series E fundraising at a valuation of $6 billion, bringing the total amount raised to date to $1 billion.
Reddit announced a Series F funding round on August 12 — which is being led by Fidelity Management and Research Company LLC and is expected to close at around $700 million, with a post-money valuation of $10 billion. The round is expected to close at around $700 million, with a post-money valuation of $10 billion.
It has been reported that thus far, $410 million has been invested in the funding round, with Reddit claiming that it expects more funding from existing investors to reach the $700 million target.
Because Reddit has not yet gone public, it is difficult to determine the true value of the company. According to Steve Huffman, Reddit’s co-founder and chief executive, in an interview with the New York Times:
“We are still planning on going public, but we don’t have a firm timeline there yet.”
“All good companies should go public when they can,” he added.
The latest funding will be used to expand internationally, simplify the user experience, improve website functionality, and roll out more video and audio services, as well as establish a self-service advertising system.
The network competes with ad-based social media behemoths like Facebook and Twitter, with Huffman claiming that “we’ve grown up in the shadow of Facebook and Google, and pretty much every dollar we make we’ve had to fight for.”
Reddit, unlike Facebook or Google, has already developed its own cryptocurrency in the form of Reddit Community Points.
The 3.3 million-member r/CryptoCurrency subreddit has its own coin called r/CryptoCurrency Moons (MOON). Cointelegraph reported in January that one user sold 14,000 Moons that they had received for free in order to pay their rent.
MOON is presently more expensive than Dogecoin (DOGE). According to CoinGecko, DOGE is currently trading at $0.27, while MOON is trading slightly higher at $0.29.
The r/FortNite subreddit launched BRICK, a similar RCP.
The famed memestock group r/wallstreetbets, which has had a huge impact on stock markets and crypto markets this year with its retail trading and pumping antics, is based on Reddit. The popularity of the group prompted the formation of the crypto equivalent, r/SatoshiStreetBets, which today has a population of 480,000 Redditors.
