Due to an interface with FTX, the cryptocurrency exchange run by billionaire Sam Bankman-Fried, members of Reddit may now buy Ethereum on the website. FTX stated that Reddit users may now manage their blockchain-based community points using the company’s payment system, FTX Pay, in a news release.
In 2020, Reddit introduced community points as a means to thank members for engaging with a community. These points are stored in the “Vault,” a user’s blockchain-based wallet that also houses the collectible NFT (non-fungible token) avatars that Reddit introduced last month. These points are based on the Ethereum blockchain.
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 those who may not be familiar with cryptocurrencies.
“Users need Eth for gas fees to transact with their Points on-chain, and FTX Pay allows them to do that,” Amy Wu, the 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’re excited to support them and their users on this journey!”
In order to assist users in registering for Community Points in the EU, Australia, and other international markets, the agreement involves the integration of FTX Pay as a white-label payment and exchange solution. CEO of FTX Sam Bankman-Fried stated in a statement released on Tuesday, August 9 “We’re thrilled to work with Reddit to support their efforts to enable online communities to leverage blockchain technology. Reddit Community Points are integrated into FTX Pay’s payment and exchange system, enhancing the user experience.”
In accordance with FTX, “Communities can use Points to reward content creators, encourage greater interaction, and launch their own custom Points token. Points allow users to advertise their influence within the subreddit and promote their reputation within or outside of Reddit. Additionally, they can purchase benefits like exclusive memberships and awards using it.”
Reddit co-founder Alexis Ohanian has a long history of investing substantially in cryptocurrencies. He started a $100 million Web3 investment fund last year. The social media goliath’s most recent action indicates its goal to lead Web 3.0 innovation. In July 2022, Reddit introduced a brand-new marketplace for non-fungible token (NFT) avatars. Twitter (TWTR), a competitor of Reddit, adopted a blockchain rewards system by adding a Bitcoin tipping tool early this year.