Analysts Tip Community Moderation Amid Reddit’s 48% Share Growth

Analysts have opined that social platform Reddit will need to invest more in content regulation in the coming months following its Initial Public Offering (IPO). 

Market watchers say this is likely due to the increasing scrutiny the platform would face as a public company. Its present reliance on individual volunteers to check community guidelines may not be sufficient going forward, Reuters reported. 

The firm recently pulled an impressive IPO that has financial experts talking about the company’s prospects as a public entity including its internal content management. 

More Investment in Regulation

Josh White a former economist at the United States Securities and Exchange Commission (SEC) notes that Reddit’s reliance on free moderation is a huge risk for the platform. Going further, he added that the firm needs to spend on curbing misinformation pointing to the upcoming US Presidential elections. 

Julian Klymochko the CEO of Accelerate Financial Technologies stated that relying on volunteers wouldn’t be accurate citing the increased regulatory requirements of the firm. He added that the company will need to make more investment in trust and safety measures describing the present scenario as relying on unpaid labor. In contrast, the company has nearly billions in revenue.

Meanwhile, a Reddit spokesperson said the company uses internal safety teams that use human review and Artificial Intelligence (AI) to track data alongside the moderators.

These teams help stamp out harassment and hateful content while aiding moderators with key tools.

“We believe our approach is the most sustainable and scalable moderation model online today. We are continually investing in and iterating on new tools and policies to improve our internal capabilities.” 

Reddit IPO Bags 48% Gain

The Reddit IPO secured a 48% rise on the first trading day on the New York Stock Exchange. Although the company has not posted positive results since its launch, investors poured in on certain factors like the adoption of Artificial Intelligence content.

The high-flying IPO sparked a buzz in the cryptocurrency market based on the platform’s cryptocurrency investment. According to IPO filings, Reddit revealed investment in Bitcoin and Ethereum with crypto enthusiasts speculating an integration of blockchain technology in the future. 

Crypto traders also suggest that certain Reddit-themed memecoin could outperform the platform’s IPO as conversations grew around the event on social media spaces.

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