Saturday, January 22, 2022

Reddit Co-Founder Is Set To Invest $100 Million in Social Media on Solana Blockchain

In an announcement today, Alexis Ohanian, Reddit co-founder, said he’s set to invest millions of dollars in building out a form of decentralized social media using the Solana blockchain.

During a fireside chat with Solana co-founder Raj Gokal first reported by The Block, Alexis Ohanian stated that “One of the reasons why I’m here is to announce — I have a venture fund called 776 — we’re earmarking $50 million to invest in the next wave of social, built on Solana.”

Read Also: CoinShares: Cardano, Solana Keep Gaining Institutional Inflows While Ethereum Loses

In the course of the chat, the Reddit co-founder pointed out that the plan is to increase the fund to $100 million since the $50 million initially allocated wasn’t enough for the investment.

This is coming in just a day after Sam Bankman-Fried, FTX CEO stated that building social media on the blockchain could be absolutely huge.

During the discussion, Bankman-Fried claimed that decentralized social media could solve a lot of pain points. He pointed to pre-existing social media sites, which have massive userbases, and stated that integrations with these sites could help to scale decentralized finance (DeFi) to millions of more users.

Read Also: Analyst Kaleo Says Ethereum (ETH) Record High above $5,000 Is Imminent

Reddit to Convert Karma Points to ERC-20 Tokens

In another development, the popular internet forum, Reddit, is also planning to start converting users’ karma points into ERC-20 tokens, with the hope of attracting 500 million crypto users worldwide.

In a series of tweets on 3rd November, Reddit engineer, Rahul, highlighted the efforts of the platform to improve the interaction of users through various crypto initiatives:

“How will we pull this off? Reddit has partnered with @OffchainLabs (@arbitrum) and created our own separate instance. Community points for 2 subreddits (~80,000 users) are already on Rinkeby Testnet on our Arbitrum network (separate to Arbitrum One).”

Read Also: Big-Money Investors Are Dumping Bitcoin (BTC) For Ethereum (ETH) –JPMorgan Analyst

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Previously, Reddit has already used the Arbitrum solution to scale the community token system, but now Reddit is planning to transfer karma points into tokens. According to the website:

“Your Community Points exist on the blockchain, independently of Reddit, where they can only be controlled by you (just like Bitcoin (BTC) !).”


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Solomon Odunayo
Solomon Odunayo is a cryptocurrency journalist with over 3 years of experience in the crypto industry. He's sternly interested in covering developments of emerging and established blockchain projects.

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