Reddit Unveils Another Method of Accepting Crypto Community Points

August 19, 2022 10:20:00

Redditors will be able to purchase Ethereum directly on the Reddit app using Community Points after the online forum partnered with crypto exchange giant FTX. The partnership will provide Reddit users with a new way to accept crypto payments and unlock cryptocurrency-enabled perks for the platform’s community points.

Only Reddit users on the subreddits r/FortniteBR and r/Cryptocurrency, which cumulatively have more than 7 million members, will be able to purchase community points using Ethereum Cryptocurrency. Speaking at a press release, FTX announced that Redditors would be able to use FTX Pay, the crypto exchange’s payment system, to manage their blockchain-based community points.

Reddit staff software engineer Nira Sheth says that blockchain’s decentralized and self-sustaining nature has allowed the online forum to find new ways to empower communities and create new ways to use Reddit. Reddit first unveiled community points in 2020 as a perk for Redditors who interacted with a community. Stored in blockchain-based wallets called vaults, these community points essentially act as a measure of how much users interact on the platform and their reputation within their communities.

Community points can also be used to gain certain community-specific memberships, send tips, reward content creators and vote on community decisions. And since community points exist on the Arbitrum Nova blockchain, they have cross-posting capabilities and can be displayed on other platforms. The partnership will be particularly beneficial to Redditors who are new to crypto. Users usually have to cover gas fees, which refers to the additional costs incurred when they transact on the Ethereum blockchain.

This fee is usually paid in Ethereum, locking out Redditors who don’t have Ethereum or have no idea how to get the crypto. Thanks to Reddit’s partnership with FTX, Redditors will be able to convert their national currencies into Ethereum to cover gas fees, allowing crypto newbies to easily purchase community points. FTX Ventures head Amy Wu said in a tweet that users transacting with their points on the blockchain need Ethereum for gas fees and that FTX Pay would allow them to acquire Ethereum with ease.

The payment system accepts both cryptocurrency and fiat payments, has no upfront costs or minimums, and charges a 1% transaction fee. By incorporating crypto payments into its structure, Reddit will make it possible for users to buy Ethereum cryptocurrency from Reddit-supported apps via FTX Pay. Wu praised Reddit for being a pioneer in leveraging blockchain’s power to empower its online communities and said that FTX was excited to partner with the company and its users.

Companies such as FTX Ventures and LQwD FinTech Corp. (TSX.V: LQWD) (OTCQB: LQWDF) are helping to bring blockchain technology to the ordinary person on the street, and this may soon result in this technology becoming embedded in communities just as the internet is now entrenched.

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