Reddit partners with crypto exchange FTX to help users manage community points

Reddit now lets users buy Ethereum cryptocurrency on the platform through an integration with FTX, the crypto exchange owned by billionaire Sam Bankman-Fried. In a press release, FTX announced that Reddit users can now use the firm’s payment system, FTX Pay, while managing their blockchain-based community points.

Reddit first rolled out Community Points in 2020 as a way to reward users for interacting with the community. These points exist on the Ethereum blockchain and are stored in a user’s blockchain-based wallet “Vault,” which also contains the collectible NFT (fungible token) avatar that Reddit introduced last month.

Reddit displays a user’s community points next to their username as a measure of their reputation, but also offers various ways to use them, such as gaining community-specific memberships, voting on decisions, Rewarding creators, as well as sending suggestions. Users on only two subreddits, r/Cryptocurrency and r/ForniteBR, can access Community Points right now, but Reddit plans to expand it to other communities in the future.

But because Community Points reside on the Ethereum blockchain, users will incur gas fees, or the costs associated with transacting on the Ethereum blockchain, when using it. as indicated by Good luck, this means paying a fee in Ethereum, which some users may not have, or may not know how to go about receiving. Reddit’s partnership with FTX will let users convert fiat currency (a country’s national currency, such as USD) into Ethereum to cover those costs, which should make Community Points more accessible to those who don’t know about crypto. I don’t know much.

“Users require eth to transact with their points on-chain, and FTX Pay allows them to do so,” said Amy Wu, head of FTX Ventures. said in a tweet, “Reddit is a pioneer in harnessing the power of blockchain to empower online communities to own and control their communities. We are excited to support them and their users on this journey!”

In addition to making it easier to buy Ethereum on the platform, FTX’s Reddit integration could also represent a Bankman-Fried bet on the longevity of the meme stock event generated on Reddit. Last year, activity on subreddits, such as r/WallStreetBets, helped propel GameStop stock to unprecedented highs.

In May, Banksman-Fried disclosed a 7.6 percent stake in Robinhood, the free trading platform popular among young investors, and rumor has it that he is considering acquiring the company. FTX also brought traditional stock trading to all users in the US last month.

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