“we sold most of our cryptocurrencies”

Reddit announced to the United States Securities and Exchange Commission (SEC) that it has sold the majority of its accumulated cryptocurrencies. The platform indicated that, since September 30, 2024, “we sold all the bitcoin (BTC) and ether (ETH) that we previously had for treasury purposes.”

The sale of these cryptocurrencies by Reddit has been carried out amid a series of financial and regulatory considerations. The net value of these cryptoassets and the recognized profit “was irrelevant for the periods presented,” according to the presentation.

“Our investment policy requires approval from our board of directors for any future investments in cryptocurrencies. Any investment by us in cryptocurrencies for treasury purposes is limited to BTC, ETH and any others that the SEC, the Commodity Futures Trading Commission (CFTC) or senior staff members of such regulatory bodies may, through public statements or guidance, identify as likely not to be a security,” reads the submitted documentation.

Cryptocurrencies, having no physical form, depend on blockchain technology for their creation, existence and transactional validation, recalls Reddit, which alleges that this dependence “introduces unique risks related to cybersecurity, malicious attacks and technological obsolescence.” .

Reddit has taken steps to protect its digital assets, but admits that human error or technological failures could result in the loss or destruction of private keys necessary to access your cryptocurrencies.

“We believe we have taken reasonable steps to protect our cryptocurrencies, but these risks, in addition to human error and computer malfunctions, may result in the loss or destruction of the private keys necessary to access the cryptocurrencies we own and the technology that we control,” the statement says.

Reddit, while recognizing the significant potential of cryptocurrencies and their technology, It also highlights the uncertainty over its future adoption.

“The popularity and prevalence of cryptocurrencies is a relatively recent trend, and it is uncertain whether cryptocurrencies and blockchain technology will continue to be adopted by consumers and businesses in the long term,” the company says.

This statement from Reddit is contrasted with the growing institutional investment in bitcoin, through exchange-traded funds and the integration of large banking institutions in this ecosystem, as reported by CriptoNoticias.

However, Reddit insists on its narrative and also mentions the issue of illegalities that, like fiat, are committed with cryptocurrencies. The company notes:

“There has been an increased focus on the use of cryptocurrencies for inappropriate, illegal or fraudulent activities associated with various cryptocurrency projects, and the environmental risks posed by cryptocurrencies. “Many coins are distributed without a centralized issuer or identifiable governing body, and their legal and regulatory status in various jurisdictions is unclear and may change in the future.”

Reddit.

Finally, Reddit mentioned that the developments They can also negatively affect the value of cryptocurrencies “and our ability to buy, sell, accept and use cryptocurrencies in the future.”

This article was created using artificial intelligence and edited by a human Editor.