Reddit has announced that it had submitted a filing to go public with the U.S. Securities and Exchange Commission. The number of shares and price range have not been determined, and the IPO will only take place after the SEC has completed its review.
Reddit intends to go public, as revealed by a confidential submission of a draft registration statement related to a proposed public offering. The S-1 form was submitted to the United States Securities and Exchange Commission (SEC) on Dec 15.
The number of shares on offer and the price range for the proposed offering haven’t yet been determined, and the IPO will only take place after the SEC completes its review. No further details were offered.
It is a big step for Reddit, which has become the home of cryptocurrency and stock market traders. Reddit could be argued to be the home of memes, and many of its users have played a significant role in markets.
Cryptocurrency users are known to frequent Reddit, posting their opinions as well as memes on the current state of the market. Many crypto projects also find it a good place to disseminate information.
But perhaps more significantly, Reddit is also home to the likes of WallStreetBets, the community which was responsible for upping GameStop’s price. The WallStreetBets community single-handedly gave firms handling billions something to worry about, and it wouldn’t be surprising if they take to the IPO news with delight.
After all, Reddit itself has shown some interest in cryptocurrencies. The generally strong performance of IPOs this year means that it could do very well should the Reddit community get behind it.
Reddit and cryptocurrencies inextricably linked
Reddit has made its own foray into cryptocurrencies with MOONs and BRICKs cryptocurrencies that are linked to r/cryptocurrency and r/forniteBR. The former has done particularly well, and there have been cases of users making a good deal of money out of it.
It has also partnered with the Ethereum Foundation to improve scaling technology. Last year, it announced a plan to implement a community points system on Ethereum.
It will be interesting to see how an IPO would perform given Reddit’s strong and enthusiastic user base. Certainly, there are a few communities that are going to do their best to support the stock.
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