Reddit Stock Falls 29% as Google AI Squeezes Clicks; Platform Joins OKX Tokenization Pushback
Reddit stock recently crashed 29% amid Google AI traffic impacts, while the company also joined dozens of firms opposing an OKX tokenization plan.
Reddit Stock Falls 29% as Google AI Squeezes Clicks; Platform Joins OKX Tokenization Pushback
Reddit stock recently crashed 29% amid Google AI traffic impacts, while the company also joined dozens of firms opposing an OKX tokenization plan.
Reddit Stock Falls Following AI Traffic Squeeze
According to BeInCrypto, Reddit stock fell 29% in what marked its worst day ever. The sharp decline arrived as Google's AI answers cut into web clicks, creating a broader squeeze that has affected other equities as well.
While technology platforms grapple with shifting traffic dynamics driven by artificial intelligence tools, companies are also navigating other major market pressures and structural shifts across the financial landscape.
Opposition Grows Against Tokenized Share Plans
Amid these market developments, Reddit has also joined a growing group of companies pushing back against tokenized share initiatives. As reported by U.Today, a total of 50 companies have officially raised objections to the trading of tokenized shares on a new platform backed by crypto exchange OKX and the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE).
The joint venture, known as OKXICE, aims to enable tokenized versions of traditional U.S. stocks to trade on the blockchain 24 hours a day, seven days a week. The platform is planned around a temporary regulatory exemption issued by the U.S. Securities and Exchange Commission on September 17, which gives companies the option to object to unauthorized third-party tokenization.
Corporate Pushback Expands Across Industries
The roster of objecting companies has expanded rapidly, growing from 38 firms on October 28 to 50 companies by October 30. Alongside Reddit, prominent names including Nvidia, Nike, Costco, Micron Technology, and major financial institutions like JPMorgan Chase, Goldman Sachs, and Wells Fargo have registered their opposition.
Under the SEC exemption framework, if a company submits a formal objection within the specified timeframe, its third-party tokenized shares cannot be offered on the platform.
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