Popular cryptocurrency exchange FTX has partnered with social media giant Reddit to allow the latter’s users to buy Ethereum ($ETH) directly on its platform through the use of FTX Pay, the exchange’s product allowing merchants to accept payments in crypto and fiat.
According to an announcement, Reddit’s Community Points will be integrated on FTX in various markets, including the United States and the European Union, and FTX Pay will be used as a “white-label payment and exchange solution to support users onboarding Community Points.”
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The announcement details that Reddit Community Points are a “measure of reputation in users’ communities. In subreddits, they are displayed next to usernames.” The more community points a user has, the more they stand out from the crowd, it adds.
While the development may seem incremental, it’s part of a broader push for Reddit to integrate blockchain technology, cryptocurrencies, and non-fungible tokens (NFTs) after the company launched its Community Points system back in 2020.
Per the announcement, the Community Points exist on the Arbitrum Nova blockchain, an Ethereum scaling solution, which means that users can “take their reputation anywhere they’re recognized on the internet.” This means that other applications can in the future use Community Points as well.
FTX Pay’s Ethereum purchasing option allows users to buy ETH directly from the Reddit app, so they can later on pay for transaction fees to move their Community Points to other platforms. The integration will allow non-crypto-savvy Reddit users to buy cryptocurrency and move their Community Points with ease.
Reddit is estimated to have over 400 million monthly active users, which means FTX Pay could soon be used by millions of additional users. FTX’s CEO Sam Bankman-Fried said:
We’re excited to partner with Reddit to continue their work to empower online communities to harness the power of blockchain. FTX Pay’s payment and exchange infrastructure integrates with Reddit Community Points, making the customer experience a more seamless process.
The Arbitrum Nova network, it’s worth noting, is designed to serve as the premier solution for Web3 gaming and social applications. Firms including Google Cloud, MetaMask creator ConsenSys, and QuickNode participated in its launch as inaugural members of Nova’s “Data Availability Committee.”
Featured image via Unsplash
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