In a bold move, Reddit plans to reserve a portion of its IPO shares for its most active users, aiming to strengthen loyalty but potentially exposing itself to unique risks.
This strategy involves offering 75,000 of its top contributors the chance to purchase IPO shares at the offering price, a privilege typically reserved for institutional investors.
Also Read: Reddit IPO: Beyond The $5B Valuation Buzz
Matt Levine from Bloomberg weighed in about the news and offered multiple ways to look at it.
- Community Loyalty vs. Market Risk: Reddit’s decision to involve its user base in the ...