Uncover the latest on Reddit's IPO move, Wormhole's tech upgrade with AMD, Do Kwon's legal battle, and Ethereum's ETF concentration concerns.
Reddit's IPO Filing Reveals Bitcoin and Ether Holdings

Reddit's IPO Filing Reveals Bitcoin and Ether Holdings

Uncover the latest on Reddit's IPO move, Wormhole's tech upgrade with AMD, Do Kwon's legal battle, and Ethereum's ETF concentration concerns.

Last update:
Feb 23, 2024
| Issue

Welcome to the latest edition of Datawallet Daily. As usual, we’ve combed through various news sources to deliver the most significant headlines from the past day:

Reddit's IPO Filing Reveals Bitcoin and Ether Holdings

Reddit has officially submitted its S-1 registration with the SEC, marking a critical step towards its anticipated Initial Public Offering (IPO). This filing reveals Reddit's strategic investment in digital assets, specifically Bitcoin and Ether, aimed solely at treasury purposes. The social media platform limits its cryptocurrency investments to those recognized by regulatory bodies like the SEC and CFTC as unlikely to be securities.

In its filing, Reddit also acknowledged accepting Ether and MATIC (Polygon's native token) for certain virtual goods transactions, though it noted these activities had a minimal financial impact for the years ending December 31, 2022, and 2023. The company emphasized the overall insignificance of its cryptocurrency holdings and related activities, indicating a cautious foray into the digital asset space.

Looking forward to its stock market debut, Reddit plans to list on the New York Stock Exchange under the ticker "RDDT". This follows an initial IPO filing in late 2021, with the company reportedly eyeing a March launch for its public offering. This move could make Reddit the first social media platform to go public since Pinterest in 2019.

Wormhole Will Use AMD Chips to Scale ‘Light Client’ Proofs

Wormhole is integrating AMD’s FPGA hardware accelerators to enhance its interoperability platform, focusing on secure cross-chain messaging through zero-knowledge proofs (ZKPs).  This collaboration is set to boost Wormhole’s capacity for secure, decentralized transfers across over 30 blockchains, addressing the computational demands of ZKP technology. 

AMD’s contribution extends beyond hardware, offering expertise to optimize Wormhole’s ZK engineering efforts. The initiative follows a significant security breach in 2022, highlighting the importance of robust security measures in blockchain interoperability.

Do Kwon Facing Extradition to U.S., Reports Local Media

Do Kwon, Terraform Labs co-founder, is set to be extradited to the U.S. following a decision by the High Court in Montenegro, prioritizing U.S. requests over South Korea’s. Kwon faces fraud charges in the U.S. related to significant losses incurred by investors due to an algorithmic stablecoin. His extradition comes after a Montenegrin court’s initial approval and Kwon’s arrest in March 2023 for using a fake passport. 

Despite agreeing to extradition to South Korea, Montenegro has decided to send him to the U.S. Kwon, who also faced a four-month prison sentence in Montenegro for document forgery, is embroiled in a legal battle with charges from the SEC for unregistered crypto asset securities transactions.

S&P Global: Ether ETFs May Raise Ethereum Concentration Risk

S&P Global analysts caution that the approval of proposed spot ether ETFs, especially those incorporating staking, could heighten Ethereum’s concentration risk. This concern arises from the potential for these ETFs to significantly influence validator distributions within the Ethereum network. 

The analysts suggest that diversification of stakes through new crypto custodians could mitigate this risk. They anticipate the SEC might approve these ETFs as early as May. This development follows JPMorgan analysts’ warnings about Ethereum’s concentration risk, emphasizing the potential for centralization to compromise network security.

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