Reddit Partners with FTX to Ease Access to Community Points
- Reddit users can use their purchased Ethereum to pay for network fees and blockchain gas fees.
Reddit users no longer have to leave the social media platform to purchase Ethereum, all thanks to a new partnership with the crypto exchange, FTX. The crypto exchange announced the collaboration on Tuesday, noting that Reddit users can buy Ethereum directly from the app and enjoy easy access to their Community Point.
Reddit users will leverage a new service called “FTX Pay,” which enables merchants to accept crypto and fiat. The move is part of a larger effort to integrate Reddit with blockchain technology, bringing it closer to cryptocurrency and NFTs, which the company has progressively embraced.
Reddit announced the launch of its “community points” in 2020, which allows users in two subreddits to earn rewards on the blockchain-based on their contributions in groups. The points are essential to the social media platform and appear next to a user’s username. These points grant each user the power to influence decisions in the group and also enable them to purchase special memberships.
Both FTX and Reddit announced plans to incorporate Reddit’s community points in Australia, the United States, and other markets. Following the partnership with FTX, Reddit users can utilize their purchased Ethereum to pay for blockchain gas fees or network fees.
Reacting to the partnership, Reddit staff software engineer Niraj Sheth said,
We’re always working to empower communities and introduce new ways to use Reddit, and decentralized, self-sustaining blockchain technology allows us to do that. By working with FTX, we’re able to do this at scale.
FTX’s CEO, Sam Bankman-Fried, commented on the partnership,
We’re excited to partner with Reddit to continue their work to empower online communities to harness the power of blockchain. FTX Pay’s payment and exchange infrastructure integrates with Reddit Community Points, making the customer experience a more seamless process.
Reddit has one of the largest social media user bases in the United States and has been heavily involved in the crypto industry over the last few years. The platform’s co-founder, Alexis Ohanian, has a long history in the cryptocurrency industry, and last year established a $100 million Web3 investment fund. Reddit joins other social media platforms such as Facebook and Twitter in embracing the crypto space.