Reddit teams up with FTX exchange to manage blockchain-based community points - Robotics Online
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Reddit teams up with FTX exchange to manage blockchain-based community points

30 Aug 2022

Reddit is set to allow users to buy Ether on the social platform following a partnership with the FTX cryptocurrency exchange. FTX announced that Reddit users would access the firm’s payment system known as FTX Pay when managing blockchain-based community points.

Reddit partners with FTX

FTX issued a press release saying that Reddit users now have access to the firm’s payment system when managing blockchain-based community points. Reddit unveiled its community points in 2020 to reward users for interacting with the community.

The points are available on the Ethereum network and stored in a vault, a user’s blockchain-based wallet that is also used to hold the collectible non-fungible token (NFT) avatars launched by Reddit in July.

The community points owned by Reddit users appear next to their usernames to measure their reputation. These points can be used in many ways, such as getting a membership, voting rights, rewards, and tipping creators.

Currently, the community points are only available on two subreddits, the r/Cryptocurrency, and r/FortniteBR. Reddit is also planning to expand the community points program to other subreddits in the future.

The partnership between Reddit and FTX will allow users to convert fiat currency into Ethereum to pay for the gas fees. This partnership will make the community points more accessible to people that know little about cryptocurrencies.

Users will also need Ether to settle the gas fees needed to support on-chain transactions, and FTX will allow them to do this following this partnership. The head of FTX Ventures, Amy Wu, tweeted that Reddit was a leader in tapping the power of blockchain to support online communities, and FTX was glad to support the social platform in that perspective.

FTX’s interest in the stock market

FTX is one of the largest cryptocurrency exchanges but has also shown interest in the stocks sector. The partnership between FTX and Reddit could depict the bet placed by the exchange’s CEO, Sam Bankman-Fried, on the meme stock hype.

In 2021, the r/WallStreeBets subreddit was behind the meme stock frenzy that helped propel the gains of several stocks, including GameStop and AMC. In May last year, Bankman-Fried revealed a 7.6% stake in Robinhood.

Robinhood is a popular platform mainly used by retail investors. Robinhood supports crypto and stock trading, and past rumors said that FTX was looking into acquiring Robinhood. Last month, FTX integrated traditional stock trading for all users on the platform.
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