Discord is planning an IPO this year, and big changes could be on the horizon

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The product has evolved into something akin to Slack, but for personal use. It’s used by artist communities, game developers, open source projects, influencers, and more to manage communities and coordinate work. In some cases, people simply use it as an extremely robust group messaging tool for groups of friends without any games or projects involved.

Limited ads to tackle limited revenue

For years, Discord proudly touted a “no ads” policy, but that dam has broken in some small ways in recent months. Discord began offering game publishers opportunities to create special “quests” that appear in the Discord interface, wherein players can earn in-game rewards for doing specific tasks, like streaming a game to friends. A new format, called video quests, is planned for this summer, too.

The new ad products are meant to drum up Discord’s revenue potential in the lead-up to an IPO; the platform already offered premium subscriptions for access to more advanced features and a marketplace for cosmetics to jazz up profiles.

So far, the ad products are, by and large, much less intrusive than ads in many other social networks and seem to be oriented around providing some user value. However, an IPO could lead to shareholders demanding more from the company in pursuit of revenue.

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