Reddit Backs Away From Cryptocurrency

Bitcoin began the week steadily trading above $225 after last week’s steep decline.

The cryptocurrency’s gains following last week’s Coinbase exchange opening were offset by worries about stability and security after mining firm CoinTerra filed for bankruptcy.

Reddit Lays Off Cryptocurrency Engineer

This week, bitcoin enthusiasts were dealt another blow after Reddit’s cryptocurrency engineer Ryan X. Charles was let go. The social media news site’s decision was received by the public as an indication of the company’s waning interest in digital currencies.

Many also believed that the elimination of Charles’ position suggested that the company was backing away from plans to offer its own ‘redditcoin.' 

On Twitter, Charles announced his departure saying that cryptocurrency development was not “a part of Reddit’s near-term plans.”

Reddit Notes In Question

Charles’ departure has raised questions about whether or not the company will follow through with its latest funding initiative “Reddit Notes."

In mid-December, the site announced that it would distribute around 10 percent of its equity to users via a random lottery.

The giveaway was planned for Fall 2015, but there are questions as to whether or not Reddit will continue developing the notes.

Related Link: Bitcoin Was Used To Fund ISIS, Report Says

Ohanian Says Notes On Pause

Charles told Fortune that legal difficulties would likely keep the company from issuing the notes, but Reddit executive chairman Alexis Ohanian responded by saying that Reddit notes are still in the works.

Ohanian said the site is planning to move forward with the notes once cryptocurrency laws and technology have advanced to ensure that Reddit users are able to receive the full value of the equity being issued.