Reddit has partnered with FTX exchange to embrace cryptocurrency payments. Sam Bankman-Fried’s crypto exchange FTX and Reddit announced in a joint statement on Tuesday that the platform intends to integrate Reddit’s Community Points in the United States, the European Union, Australia, and other markets.
It has been reported that the partnership features the integration of FTX Pay as a payment and crypto exchange solution to unlock new crypto-enabled perks for Reddit Community Points. Introduced in May 2020, Reddit Community Points are a measure of reputation in communities or subreddits, allowing users to own a piece of their favorite communities.
“As a unit of ownership, points capture some of the value of their community. They can be spent on premium features and are used as a measure of reputation in the community.”
However, Reddit Community Points are based on Arbitrum, one of the most Ethereum scaling solutions. With the new integration, users will be able to purchase Ether (ETH) from supported Reddit apps via FTX’s payment and exchange infrastructure platform FTX Pay.
The report said that the cryptocurrency can be used to pay blockchain gas fees, or network fees for their Community Points transactions on-chain.
Niraj Sheth, the staff software engineer of Reddit, said:
“We're always working to empower communities and introduce new ways to use Reddit, and decentralized, self-sustaining blockchain technology allows us to do that. By working with FTX, we're able to do this at scale.”
Likewise, Bankman-Fried noted that the partnership with Reddit marks FTX s commitment 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 news comes amid Arbitrum developer Offchain Labs launching the Arbitrum Nova chain on Tuesday. Arbitrum Nova, the second chain launched in the Arbitrum ecosystem, is designed to serve as the premier solution for Web3 gaming and social applications.
Apart from Reddit and FTX, other firms like Google Cloud, Consensys, P2P, and QuickNode participated in the launch by becoming inaugural members of Nova's “Data Availability Committee.” One of the most popular websites in the United States, Reddit has been largely involved in the crypto and blockchain industry for many years. The discussion platform is known for once allowing users to pay for their premium membership in Bitcoin but removing the opportunity in 2018.
Thus, Alexis Ohanian, the co-founder of Reddit, has been widely involved in crypto, launching a $100 million Web3 investment fund last year. Ohanian subsequently launched another $200 million Web3 and social media fund in collaboration with the Ethereum scaling solution Polygon.