Reddit partners with crypto exchange FTX to help users manage community points

1 month ago 29

Reddit present lets users acquisition Ethereum cryptocurrency connected the level done an integration with FTX, the crypto speech owned by billionaire Sam Bankman-Fried. In a property release, FTX announced that Reddit users tin present usage the firm’s outgo system, FTX Pay, erstwhile managing their blockchain-based assemblage points.

Reddit archetypal rolled retired assemblage points successful 2020 arsenic a mode to reward users for interacting with a community. These points beryllium connected the Ethereum blockchain and are stored successful the “Vault,” a user’s blockchain-based wallet that besides holds the collectible NFT (non-fungible token) avatars that Reddit introduced past month.

Reddit displays a user’s assemblage points adjacent to their username arsenic a measurement of their reputation, but besides offers assorted ways to usage them, specified arsenic to get community-specific memberships, ballot connected decisions, reward creators connected the platform, arsenic good arsenic nonstop tips. Only the users connected 2 subreddits, r/Cryptocurrency and r/ForniteBR tin utilize assemblage points close now, but Reddit plans connected expanding it to different communities successful the future.

But due to the fact that assemblage points unrecorded connected the Ethereum blockchain, users volition incur state fees, oregon the outgo associated with performing a transaction connected the Ethereum blockchain, erstwhile utilizing the points. As pointed retired by Fortune, this means paying a interest successful Ethereum, which immoderate users whitethorn not have, oregon whitethorn not cognize however to spell astir obtaining. Reddit’s concern with FTX volition fto users person fiat currency (a country’s nationalist currency, similar USD) to Ethereum to screen those costs, which should marque assemblage points much accessible to radical who mightiness not cognize overmuch astir crypto.

“Users request Eth for state fees to transact with their Points on-chain, and FTX Pay allows them to bash that,” Amy Wu, the caput of FTX Ventures, said successful a tweet. “Reddit is simply a pioneer successful harnessing the powerfulness of blockchain to empower online communities to ain and power their communities. We’re excited to enactment them and their users connected this journey!”

Besides making it easier to acquisition Ethereum connected the platform, FTX’s Reddit integration could besides correspond Bankman-Fried’s stake connected the longevity of the meme banal improvement that originated connected Reddit. Last year, enactment connected subreddits, similar r/WallStreetBets, helped propel the GameStop banal to unprecedented heights.

In May, Bankman-Fried disclosed a 7.6 percent stake successful Robinhood, the free trading level fashionable among young investors, and rumor has it that helium whitethorn beryllium looking into acquiring the company. FTX besides brought accepted banal trading to all users successful the US past month.

Read Entire Article