24/7 Cryptocurrency News

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

Reddit IPO will draw increased regulatory scrutiny as analysts steer the social platform to content moderation.
Published by
Analysts Tip Community Moderation Amid Reddit’s 48% Share Growth

Highlights

  • Market commentators pitch Reddit to increase community regulation.
  • Experts warn of more scrutiny after IPO.
  • Reddit IPO soars on first trading day.

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. 

Advertisement

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.” 

Advertisement

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.

Read Also: Here’s Why Bitcoin, ETH, Crypto Prices Are Falling Today

Advertisement

Share
David Pokima

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025
  • 24/7 Cryptocurrency News

Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million…

October 2, 2025
  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025