Ohanian Joins Bid to Acquire and Decentralize TikTok US

Tech entrepreneur and Reddit co-founder Alexis Ohanian has confirmed his participation in an effort to purchase TikTok’s U.S. operations. He recently announced that he has joined Project Liberty’s bid to acquire the widely popular social media platform, with intentions to shift its infrastructure onto blockchain technology. The initiative comes at a time when the U.S. government continues to pressure TikTok’s Chinese parent company, ByteDance, to divest its U.S. assets or face a potential ban in the country.

Project Liberty, an organization founded by American businessman Frank McCourt, has been leading the initiative. Reports indicate that the group aims to restructure the platform in a way that grants users greater control over their digital identities and personal data. McCourt has referred to this acquisition attempt as “The People’s Bid,” a name that aligns with the group’s mission to prioritize user data ownership and enhance creator autonomy.

Ohanian has been vocal about the necessity of shifting ownership structures in social media. He has emphasized the importance of users having control over their own data and ensuring that content creators have full ownership of their audiences. The proposed acquisition would facilitate this vision through the integration of a blockchain-based system known as “Frequency.” This decentralized social network, built on Polkadot’s infrastructure, is designed to provide users with direct ownership of their personal data while enhancing transparency and accountability.

According to reports, the implementation of Frequency would introduce a new approach to data management, making the platform more equitable. The initiative seeks to redefine the role of users and content creators within digital communities by placing control in their hands rather than in centralized corporate entities.

Political and Industry Developments Influence the Bid

The bid for TikTok’s U.S. operations comes amid ongoing political scrutiny of the platform. In the past, TikTok faced regulatory challenges in the U.S., including a temporary shutdown before being reinstated under former President Donald Trump’s administration. Recent developments have reignited discussions about its future in the country, contributing to the urgency of the acquisition effort.

Ohanian is not the only prominent figure involved in the initiative. Reports confirm that investor and cryptocurrency advocate Kevin O’Leary, known for his role in the television show Shark Tank, has also joined Project Liberty’s efforts to acquire TikTok’s U.S. operations. This participation from high-profile individuals signals a strong push towards decentralization and blockchain integration within major social media platforms.

Ohanian’s Continued Involvement in Blockchain Initiatives

Ohanian’s interest in blockchain technology is well established. During his tenure at Reddit, the platform allocated a portion of its cash reserves into cryptocurrencies such as Bitcoin, Ethereum, and Polygon. However, reports indicate that most of these holdings were liquidated in the third quarter of 2024.

Reddit also launched various blockchain-based initiatives under Ohanian’s leadership, including “Reddit Collectible Avatars,” a collection of non-fungible tokens (NFTs) on the Polygon blockchain. Additionally, the platform experimented with an Ethereum-based reward system called “Community Points,” designed to incentivize user contributions to specific subreddits. However, this system was eventually discontinued in late 2023.

Beyond Reddit, Ohanian has a personal history of cryptocurrency investments. Reports suggest that he acquired 50,000 ETH at a price of approximately $0.30 per token in 2014 and has utilized cryptocurrency for various personal transactions. In 2021, he explored the possibility of building a decentralized social media network on the Solana blockchain. This project was reportedly connected to Sam Bankman-Fried, the now-incarcerated founder of the FTX cryptocurrency exchange.

Future of a Decentralized TikTok

The Frequency blockchain, which is intended to support the revamped TikTok platform, incorporates unique features designed for social media applications. Project Liberty describes its structure as having a distinctive pricing model that enables seamless integration between various applications built on the platform. This approach aims to facilitate high-volume social interactions while maintaining efficiency.

Supporters of the acquisition effort believe this initiative could set a new precedent for the development of digital communities. They argue that transforming TikTok into a decentralized platform would represent a significant shift in the social media landscape, prioritizing fairness, transparency, and user empowerment. The outcome of this bid remains uncertain, but if successful, it could redefine how social media platforms operate in the future.