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FTX to Integrate Reddit’s Community Points With New Partnership

By:
Mohadesa Najumi

Reddit has formed a partnership with FTX to enable users to pay gas fees on transactions using Community Points.

Reddit logo on a phone

Key Insights:

  • Reddit will integrate with FTX Pay in order to unlock new crypto-enabled perks for Community Points.
  • Users will be able to purchase ETH from supported Reddit apps via FTX Pay.
  • Community Points were introduced in May 2020 as a measure of reputation in communities or subreddits. 

Reddit users will be able to purchase Ethereum (ETH) directly through the FTX Pay app thanks to a new partnership with the FTX cryptocurrency exchange.

After a decision to stop accepting Bitcoin (BTC) payments on its platform in 2018, online forum Reddit now seems to be inching closer to adopting cryptocurrency payments.

Blockchain-powered Community Points System

In a joint statement with Sam Bankman-Fried’s FTX, Reddit has confirmed an integration with FTX Pay as a payment and crypto exchange solution to unlock new crypto-enabled perks for Reddit Community Points.

Community Points, which were introduced in May 2020 as a measure of reputation in communities or subreddits, will be integrated throughout different markets in the United States, European Union and Australia.

This means that users will be able to purchase ETH from supported Reddit apps via FTX’s payment and exchange infrastructure platform FTX Pay. The cryptocurrency can also be used to pay for network fees related to Community Points transactions on-chain.

Community Points will be based on the Ethereum scaling solution Arbitrum and as a unit of ownership, they can be spent on premium features. The points appear next to a username so the score is visible to everyone, allowing for customisation and improved content.

Reddit’s new move mirrors social media platform Twitter’s decision to integrate a blockchain rewards system with the introduction of a Bitcoin tipping feature earlier this year. The tool allows users to receive tips via third-party payment channels including Bitcoin wallets and Lightning Network services. Users can also add their Ethereum wallets to Twitter and send ETH as well.

Company Strides

Last month, Reddit launched a new non-fungible token (NFT) avatar marketplace that allows users to purchase blockchain-based profile pictures for a fixed rate. In the early-access phase, 90 different designs were released and in order to mint these avatars on-chain, Reddit partnered with Ethereum-compatible blockchain Polygon.

The NFTs can be stored and managed using Reddit’s own blockchain wallet Vault which is available on the company’s native app.

The company emphasised that owners of its limited-edition NFTs will have licensing rights to use them on and off Reddit as an avatar. An avatar builder also enables users to mix and match different looks or add glow-like effects.

Despite Reddit removing the option that allowed users to pay for their premium membership in Bitcoin many years ago, the company boasts a crypto-positive co-founder who has been widely involved in the sector. Alexis Ohanian launched a $100 million Web3 investment fund last year, followed by another $200 million Web3 and social media fund in collaboration with Polygon.

About the Author

Mohadesa Najumi is a British writer who has worked within crypto, forex, financial technology, and the stock market industry. Mohadesa received her MSc in Political Science and International Relations at the University of Amsterdam.

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