On Reddit, users may now buy Ethereum. They can manage their blockchain-based community points using FTX’s payment platform.
FTX, the cryptocurrency exchange controlled by billionaire Sam Bankman-Fried, was integrated. In a news release, FTX revealed that Reddit users may now manage their blockchain-based community points using the company’s payment system, FTX Pay.
In 2020, Reddit introduced community points as a means to thank members for engaging with a community. These points are stored in the “Vault,” a user’s blockchain-based wallet that also houses the collectible NFT (non-fungible token) avatars that Reddit unveiled last month. These points are based on the Ethereum blockchain.
Reddit offers a variety of options to use the community points, including to earn community-specific memberships, vote on issues, recognize creators on the site, and send tips. Community points are shown next to a user’s username as a measure of their reputation on the site. Community points can currently only be used by members of the two subreddits r/Cryptocurrency and r/ForniteBR, but Reddit wants to eventually open it up to more communities.
However, as community points are stored on the Ethereum blockchain, utilizing them will result in gas fees, or the price of making a transaction on the Ethereum blockchain. Due to Reddit’s agreement with FTX, users will be able to pay for community points with fiat currency (like USD) instead of cryptocurrency by converting fiat to Ethereum. This entails paying a charge in Ethereum, which some users might not have or may not know how to obtain, as Fortune pointed out.
Due to Reddit’s cooperation with FTX, users will be able to convert fiat currency (a nation’s official currency, such as USD) to Ethereum to pay for those expenses, making community points more approachable for those who may not be familiar with cryptocurrencies.
“Users need Eth for gas fees to transact with their Points on-chain, and FTX Pay allows them to do that. 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!”
amy Wu – the head of FTX Ventures
The FTX Reddit integration could be seen as Bankman-wager Fried’s on the durability of the meme stock phenomena, which started on Reddit and makes it simpler to buy Ethereum on the platform. Activity on Reddit subreddits like r/WallStreetBets helped the GameStop stock reach record highs last year.
Young investors’ favorite free trading platform, Robinhood, was revealed to have a 7.6 percent interest by Bankman-Fried in May. There are rumors that he may be considering buying the business. Last month, FTX made regular stock trading available to all users in the US.
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