According to a Wall Street Journal report, social media company Reddit plans on selling a sizeable portion of its IPO shares to the users of its platform. The report also claims that the company is reserving an unknown number of shares for up to 75,000 of its most prolific users. EquityZen Head of Market Insight Brianne Lynch joins Yahoo Finance to discuss Reddit's IPO plans and how the company may fare after implementing this IPO strategy. Lynch warns of potential risks with the strategy:"This definitely doesn't come with[out] risks, and there are few examples of this. You know, Airbnb (ABNB) is a success story. We saw they allowed marketplace users to buy into the IPO. That IPO traded up 113% the first day. It was a great win for them. Uber (UBER) did the same and that traded down. Robinhood (HOOD) did the same and that traded down. It's now down 60% since that IPO. I think there's additional risk just given the social nature of their platform. Are these power users going to be mad if the stock trades down and what is that going to do for overall stock performance?" For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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