FTX Partners with Reddit to Put Community Points on Mainnet
Crypto derivatives exchange FTX has partnered up with Reddit to integrate the social media network’s “Community Points” across the US, EU, Australia, and other major global markets. The integration will allow users to pay gas fees via FTX Pay and move the Community Points to Arbitrum-powered Ethereum wallets.
Users Can Pay Gas Fees For Community Points Transactions Via FTX Pay
Bahamian cryptocurrency and derivatives exchange FTX has closed a major deal with Reddit that will enable users to pay gas fees on Reddit’s Community Points with fiat through FTX Pay. The integration is set to launch in all major global markets including the U.S, EU, and Australia, among others.
“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,”FTX CEO Sam Bankman-Fried.
Community Points, a popular feature Reddit introduced in 2020, represent blockchain-based tokens that allow users on the platform to give rewards and serve as a reputation measure in Reddit’s communities. In each of these communities, also known as subreddits, the Community Points are shown next to users’ usernames, with the most popular community contributors carrying the most points.
Due to the fact that this feature is powered by the Arbitrum Nova blockchain, the reputation of these users can be seen anywhere they’re recognized on the internet. With the integration of FTX Pay, Reddit users will be able to buy Ether (ETH) from supported Reddit apps, which they can then use to pay gas fees for their Community Points transactions on-chain.
“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,”Niraj Sheth, Staff Software Engineer at Reddit.
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Reddit to Expand Community Points to More Subreddits
Even though Reddit introduced the feature two years ago, the Community Points feature is available only in the r/cryptocurrency and r/fortnite subreddits at the moment, but the social media company has a waitlist. However, the company occasionally airdrops Community Points to its biggest contributors, similar to how they receive Karma points for popular posts.
Reddit, which filed to go public via an initial public offering (IPO) last year, is one of the most popular social media networks in the world. The company reported 430 million active users in 2020 and has over 1.2 million subreddits.
Reddit has also been one of the key communities fueling the meme-stock frenzy in January 2021, when stocks like the video game retailer GameStop and AMC saw unprecedented gains. Last week, a research report by the World Economic Forum (WEF) showed that over 65% of retail investors in emerging countries use social media to make investment decisions.
What do you think about the new deal between Reddit and FTX? Let us know in the comments below.