Hive or Steemit as it was once known, started off as a Reddit clone. Reddit recently IPO'ed and in the quarter ending 2024, has powered to a profit. They have also provided guidance that they expect revenues to continue to increase int he coming quarters. Are there any lessons for Hive here?
More Users
The number of daily active users on Reddit has increased by 47% in a year to nearly 100 million. But what's the secret sauce of Reddit? A light touch to moderation. Lots of communities and lots of reposts of popular material.
People might be interested to know, that in the early days, there were lots of bots on reddit doing the posting to make it seem more popular than it was. So, lots of interesting content (not necessarily original), not much censorship, rinse and repeat.
Google is also directing lots of traffic to Reddit to have user questions answered. I've been noticing the change in the search results myself.
Advertising
With lots of daily active users, start including more ads, in between the threads. Previously, Reddit was relying on their own advertising network and that wasn't much of a success. But with more eyeballs, they're up to about 300 million in ad revenue.
AI Training Data
The last big revenue earner is through data licensing with Google and OpenAI in order to sell their content for the purpose of AI model training. This brings in another $33 million.
Could Hive Do Something Similar?
Hive has the potential to do something similar and the funds could be used to purchase Hive on the market to improve the price of Hive. Which let's be honest, has been in the dumps for a while now. What's stopping us, though?
