For the Reddit (REDDIT-USD) cryptocurrency, the meme coin is presently enjoying an abundance of riches. First and foremost, Reddit – the popular social news aggregation and discussion website – is set to launch its initial public offering (IPO). More details about the IPO materialized earlier Monday morning, which subsequently boosted interest in the Reddit crypto. Second, the virtual currency market itself has gone ballistic.
As InvestorPlace’s Shrey Dua reported earlier, the social media company hopes to raise up to $748 million in its primary offering, per a corporate filing. Specifically, the terms call for the sale of about 22 million shares with a per-unit price between $31 and $34. The security will trade under the ticker symbol “RDDT.”
Notably, the platform operator has also isolated 1.76 million shares for users of its website, commonly known as “Redditors.” As Dua mentioned, Redditors will be able to purchase these shares at the offering price and sell them upon the RDDT stock IPO without being subject to the standard six-month lock-up period.
While management warned that Redditors who take up the aforementioned offer could see increased volatility, that hasn’t mitigated enthusiasm for the Reddit crypto. Indeed, at almost 12% up over the past 24 hours, REDDIT-USD ranks among the better-performing decentralized assets.
Reddit Crypto Soars on Meme Culture
According to CoinMarketCap’s description, the Reddit crypto represents “a dynamic and vibrant cryptocurrency developed to celebrate the power of creativity, art, and meme culture.” Further, the creators of the REDDIT-USD token aim to “bridge the digital and artistic worlds while fostering a strong community of enthusiasts.”
Further, the Reddit crypto is young, with the concept coming to life in early 2023. From the description, it appears that REDDIT-USD is an independent project that is unaffiliated with Reddit. Still, that hasn’t stopped the digital asset from moving sharply.
Over the trailing one-month period, the Reddit crypto has enjoyed a more than fivefold increase. Some of the enthusiasm is, of course, tied to the RDDT stock IPO. However, most of the bullishness appears linked to broader crypto market euphoria.
At the moment, the benchmark blockchain asset is trading hands at over $72,000. With the crypto marching higher toward the $100,000 level, the excitement for the coin has lifted all boats, including speculative fare like the Reddit crypto.
Why It Matters
Another element that’s bolstering sentiment for REDDIT-USD is the long wait. The social media firm first filed a confidential draft of its IPO prospectus in 2021. That year, Dua noted, Reddit raised $1.3 billion in private funding, earning a valuation of $10 billion. That’s more than the current targeted valuation of up to $6.4 billion.
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On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
