Monday, October 3, 2022
HomeTechnologyReddit partners with crypto exchange FTX to help users manage community points

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

Through a connection with FTX, the cryptocurrency exchange run by billionaire Sam Bankman-Fried, Reddit now allows users to buy Ethereum on the site. In a news release, FTX revealed that Reddit users may now manage their blockchain-based community points via the company’s payment system, FTX Pay.

In 2020, Reddit introduced community points as a means to thank members for engaging with a community. These points are held in the “Vault,” a user’s blockchain-based wallet that also houses the collectible NFT (non-fungible token) avatars that Reddit unveiled last month. These points are based on the Ethereum blockchain.

Reddit offers a variety of options to utilize community points, including to earn community-specific memberships, vote on issues, recognize creators on the site, and submit tips. Community points are shown next to a user’s username as a measure of their reputation on the site. Community points may now only be used by members of the two subreddits r/Cryptocurrency and r/ForniteBR, but Reddit wants to eventually open it up to more communities.

However, as community points are stored on the Ethereum blockchain, utilizing them will result in gas costs, or the price of making a transaction on the Ethereum blockchain. This entails paying a charge in Ethereum, which some users might not have or may not know how to get, as Fortune pointed out. Due to Reddit’s cooperation with FTX, users will be able to convert fiat currency (a nation’s official currency, such as USD) to Ethereum to pay for those expenses, making community points more approachable for individuals who may not be familiar with cryptocurrencies.

According to Amy Wu, CEO of FTX Ventures, “Users require Eth for gas costs to trade with their Points on-chain, and FTX Pay lets them to accomplish so.” Reddit is a leader in leveraging blockchain technology to give online communities authority and ownership over their communities. We’re thrilled to accompany them and their customers on this adventure!

The FTX Reddit integration might be seen as Bankman-wager Fried’s on the durability of the meme stock phenomena, which started on Reddit and makes it simpler to buy Ethereum on the platform. Activity on Reddit subreddits like r/WallStreetBets helped the GameStop stock reach record highs last year.

Young investors’ favorite free trading platform, Robinhood, was revealed to have a 7.6 percent interest by Bankman-Fried in May. There are rumors that he may be considering buying the business. Last month, FTX made regular stock trading available to all customers in the US.

Joe Wallace
Joe Wallace
Joe Wallace is a reporter with over two decades of experience, writing about the latest and greatest technology news. With the most experience on TheOptic team, Joe strives to help highlight the most exciting developments in the technology world, as well as bring you the latest updates on new and developing technologies from around the world.
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