Breaking Down Reddit's Crypto Strategy
Web 3 Social Bulls, Take Note
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Elon Musk banning journalists on Twitter was not on our 2022 Bingo card (and trust me, we had a lot of weird stuff on there).
While Musk is not the first to silence his critics (Peter Thiel famously helped bankrupt popular lowbrow tech blog, Gawker), and the New York Times is not exactly known for its objectivity when it comes to big tech personalities, Musks’ antics did have people begin to ponder: should future social media platforms be controlled by its users, rather than one person?
Recently, VCs have been buzzing about the potential for Web 3 social platforms (e.g. Lens Protocol) in disrupting Web 2 incumbents, and the latter are beginning to place bets in a technology that could one day displace their bottom line as well.
A few example of Big Tech dipping their toes into crypto:
Twitter launched an official verification mechanism for NFT profile pictures and allowed users to buy and sell NFTs through tweets in January
Meta allowed users on Facebook and Instagram to create, sell and post NFTs on the Ethereum and Solana blockchain in May
Snapchat allowed users to sell and use NFTs as Augmented Reality filters in July
Amongst the popular social platforms, Reddit is the furthest along in blockchain adoption and recently made headlines as their recent NFT launch managed to onboard more than 3 million users and did over $10 million in secondary sales volume.
To put this in context, that was 62% of Polygon NFT trading volume on Opensea for October!
Unbeknownst to many, Reddit actually has had a crypto strategy dating back to 2020, with multiple developments that are often overlooked by crypto natives. As one of the world’s most prominent social sites, Reddit’s strategy to crypto may inform what other companies may pursue, and bear important lessons for those bullish on the emerging “Web 3 Social” narrative.
In this article, we go through:
Reddit’s blockchain strategy: NFTs, social tokens and a digital wallet
Assessing the success of Reddit’s crypto strategy
Social media platforms’ approach to crypto and why it matters
Relevant verticals and projects