Nikolas Sargeant
Reddit has partnered with crypto exchange FTX, allowing users to buy crypto on the platform and help users manage community points. Reddit users can now use FTX Pay to pay off Ethereum gas fees.
In a press release, FTX announced the launch of an integration with the Reddit platform, allowing customers to purchase Ethereum (ETH). FTX’s CEO Sam Bankman-Fried has continued his company’s global expansion in the crypto space, pushing the firm’s payment system, FTX Pay, and aiding Reddit users in managing their blockchain-based community points.
Making Life Easier For Reddit Users
Reddit released community points back in 2020 to create a reward system for users who are loyal and active in the community. Reddit points indicate a user's reputation on the platform; they provide functions such as acting as community-specific memberships, voting on decisions, rewarding fellow creators, and sending tips.
These points are linked to the Ethereum blockchain and are held in the “Vault”, Reddit’s blockchain-based wallet, where users can also store the recently introduced NFT (non-fungible token) avatars.
For now, only the users on the r/Cryptocurrency and r/FortniteBR can use community points, but Reddit has announced plans to expand the system into other communities down the line.
How Will FTX Pay Help Users?
Since community points are registered on the Ethereum blockchain, users will incur gas fees for every transaction. Users must have Ethereum to pay these fees, which they may not have.
FTX Pay will provide a means to convert fiat currency to Ethereum to pay gas fees costs, making community points accessible to all users. This was highlighted by Amy Wu, the head of FTX Ventures, in a recent Tweet: “Users need Eth for gas fees to transact with their Points on-chain, and FTX Pay allows them to do that,” she went on to state her excitement about the new deal “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!”
Bankman-Fried has been very active with investment and the firm’s expansion in 2022. This is the latest in a long list of moves, likely seeing FTX’s $32 billion February (2022) evaluation continue to rise.
