(Ekta Mourya – FXStreet)
– Reddit enlisted FTX and Arbitrum to launch its tokens on the Ethereum mainnet.
– Users can move their Reddit Community Points to Arbitrum-built Ethereum wallets and pay gas fees with FTX Pay.
– FTX Pay will allow Reddit users to buy ETH with fiat to pay for gas fees in Community Points transactions.
Reddit’s partnership with FTX Pay could be game changing for the user community. The exchange will allow users to buy Ethereum with fiat to pay for gas associated with Community Points transactions.
Reddit announces partnership with FTX Pay
Reddit, popular as the front page of the internet, has collaborated with one of the largest cryptocurrency exchanges FTX. Reddit has integrated FTX pay, a leading payment solution with Community Points.
In 2020, Reddit launched Community Points, giving users the ability to earn blockchain rewards for submitting quality posts and comments. Community Points determine a user’s reputation and appears next to username on profiles. This token is built on the Arbitrum Nova blockchain.
While FTX is on its shopping spree in the bear market, the exchange entered a partnership with Reddit. FTX’s crypto-to-fiat exchange now powers the purchase of Reddit’s points using fiat. The FTX Pay integration will allow users to buy Ethereum from crypto applications supported on Reddit and ETH can be used to pay for Community Point’s gas fees using the altcoin. Points allow customization, to encourage better content, and unlock special features, therefore they are popular among users.
Community Points live in r/cryptocurrency and r/fortnite subreddits, it is likely that it will also go live on more subreddits in the future.
FTX’s take on Reddit partnership
Community Points transactions are settled on the Ethereum blockchain. Amy Wu, head of FTX Ventures told Blockworks in an email:
Users need ETH for gas fees to transact with their Community Points on-chain, and FTX Pay allows them to do that.
Reddit has not commented on the plan to expand Community Points usage and introduce it to other subreddits on its platform. However, the FTX partnership shows that Reddit is serious about the adoption and utility of Community Points. FTX and Reddit are prepared to onboard non-crypto natives, in a move beneficial to both parties.