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The Co-founder Of Reddit Is Planning To Invest $100 Million In Social Media On The Solana Blockchain

Alexis Ohanian, Reddit co-founder, announced today that he plans to invest millions of dollars in developing a sort of decentralised social media using the Solana blockchain.

Alexis Ohanian revealed during a fireside discussion with Solana co-founder Raj Gokal, as first reported by The Block, that “one of the reasons 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 media, built on Solana.”

During the discussion, the Reddit co-founder mentioned that the fund will be increased to $100 million because the initial $50 million allocation was insufficient for the investment.

This comes only a day after FTX CEO Sam Bankman-Fried claimed that developing social media on the blockchain might be massive.

During the conversation, Bankman-Fried asserted that decentralised social media could alleviate a variety of problems. He cited pre-existing social media sites with large user populations, claiming that integrations with these sites might help scale decentralised finance (DeFi) to millions of additional users.

In another move, Reddit, the renowned online forum, plans to begin converting users’ karma points into ERC-20 tokens, with the goal of reaching 500 million crypto users globally.

Rahul, a Reddit programmer, highlighted the platform’s efforts to boost user involvement through various crypto initiatives in a series of tweets on November 3rd:

“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).”

Previously, Reddit employed the Arbitrum method to expand the community token system, but now the site intends to convert karma points into tokens. The webpage states that:

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