Reddit users can now purchase Ethereum (ETH) through integration with FTX, the cryptocurrency exchange owned and controlled by Sam Bankman-Fried. A press release by FTX stated that Reddit users now have the ability to use FTX Pay, the company’s payment system, to manage their blockchain-based community point.
Reddit introduced community points as a reward for users who interact with the community in 2020. These points are available on Ethereum and stored in the “Vault,” a user’s blockchain-based wallet. It also contains the collectible non-fungible token (NFT) avatars, which Reddit introduced last Month.
Reddit shows a user’s community point next to their username to show their reputation. However, it also provides many ways to use them, such as voting on decisions, rewarding creators, sending tips and getting community-specific memberships. Reddit currently allows community points to be used by subreddits and /ForniteBR. However, Reddit plans to expand it to other communities.
However, because community points are stored on the Ethereum blockchain, users will be charged gas fees for performing transactions on the Ethereum Blockchain. Fortune highlighted that this means users will need to pay a fee in Ethereum.
Some users may not have the necessary knowledge or not be able to afford it. Reddit’s partnership in FTX will allow users to convert fiat into Ethereum to pay those costs. This should make community points more easily accessible for people who don’t know much about crypto.
In a tweet, Amy Wu, head of FTX Ventures, stated that users need ETH to pay gas fees and transact with their Points. Reddit is an innovator in harnessing blockchain’s power to empower online communities to control and own their communities. We are excited to help them and their users in this endeavor!
FTX’s integration with Reddit could be Bankman-Fried’s wager on the viability of the meme stock phenomenon that began on Reddit. Activity on subreddits like r/WallStreetBets contributed to the GameStop stock reaching new heights last year.