Vitalik Buterin Praises Reddit’s Embrace of Contributor Ownership in IPO
In a recent email response, Ethereum co-founder Vitalik Buterin commended Reddit for its decision to include contributor ownership in its upcoming initial public offering (IPO). However, he expressed disappointment about the limitations imposed by U.S. regulations on Reddit’s contributors. While Buterin acknowledged that the restrictions were due to regulatory factors and not Reddit’s own doing, he emphasized the missed opportunities for the global crypto community within the crypto industry.
Reddit’s Directed Share Program (DSP) and Buterin’s Proposal
As part of its IPO, Reddit introduced a Directed Share Program (DSP), which allows eligible users and moderators to purchase stock at lower prices similar to institutional investors. However, only U.S. residents are eligible to participate in the program. Buterin proposed an alternative model called “community contributor airdrops” to provide opportunities for contributors worldwide.
Reddit’s Support for Bitcoin and Ethereum
In its IPO filing, Reddit revealed investments in Bitcoin and Ethereum, indicating its interest in blockchain technology. The company’s board has approved an investment policy that focuses on risk reduction and includes investments in cryptocurrencies that are unlikely to be classified as securities by regulators.
The IPO, which has been delayed for several years, was filed by Reddit on February 22, 2024, and is expected to take place in the coming months. U.S. residents who wish to participate in the IPO need to provide their valid social security or permanent resident number and other relevant details. Using a VPN may cause issues due to application limitations. Additionally, current or former Reddit employees are not eligible for the DSP.
As the Ethereum network prepares for a major upgrade called Dencun, the price of ETH has surged over $3,500. This rally is also influenced by Bitcoin’s rise above $65,000.
Hot Take: Buterin Highlights Regulatory Constraints on Reddit’s Contributors
Vitalik Buterin’s praise for Reddit’s inclusion of contributor ownership in its IPO reflects the importance of community participation and engagement within the crypto industry. However, he points out the limitations imposed by U.S. regulations, which restrict opportunities for contributors outside of the United States. By proposing a rolling model for community contributor airdrops, Buterin emphasizes the need for global inclusivity and collaboration in the crypto space.
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