Reddit is looking to accept cryptocurrency payments thanks to a new agreement with the FTX exchange, customers will be able to utilize FTX Pay to buy Ether (ETH) through compatible Reddit apps.
In a joint statement on Tuesday, Sam Bankman-Fried’s cryptocurrency exchange FTX and Reddit stated that the platform would incorporate Reddit’s Community Points in the US, the EU, Australia, and other markets.
As part of the agreement, FTX Pay will be integrated as a payment and cryptocurrency exchange service, enabling new benefits for Reddit Community Points.
Reddit Community Points, which were introduced in May 2020, are a gauge of reputation in subreddits or communities, enabling users to own a piece of their preferred communities.
“Points serve as a unit of ownership that partially encapsulates community value. When the Community Points were introduced two years ago, Reddit stated that they could be used to purchase premium services and were also used as a gauge of reputation in the community. Arbitrum, one of the most popular scaling solutions for Ethereum, is the foundation of Reddit Community Points.
With the new connection, customers will be able to utilize FTX Pay, the company’s payment and exchange infrastructure platform, to buy Ether (ETH) through compatible Reddit apps.
The coin can be used to pay network costs for Community Points transactions on-chain as well as blockchain gas expenses.
Decentralized, self-sustaining blockchain technology enables us to continue our ongoing efforts to strengthen communities and offer fresh ways to utilize Reddit. We are able to achieve this at scale by collaborating with FTX, according to Niraj Sheth, a software engineer on staff at Reddit.
Bankman-Fried stated that FTX’s commitment to enabling online communities to utilize the power of blockchain is demonstrated by their cooperation with Reddit.
He continued, “FTX Pay’s payment and exchange infrastructure interact with Reddit Community Points, creating a more seamless consumer experience.”
In addition to Reddit and FTX, companies like Google Cloud, Consensys, P2P, and QuickNode also took part in the launch by joining Nova’s “Data Availability Committee” as its first members.
Reddit, one of the most well-known websites in the US, has long been heavily active in the cryptocurrency and blockchain industries.
The discussion site was originally recognized for letting users use Bitcoin to pay for their premium memberships, however, in 2018 they no longer allowed this option.
Alexis Ohanian, a co-founder of Reddit, has a long history in the cryptocurrency industry, and last year he established a $100 million Web3 investment fund. Later, Ohanian unveiled a second $200 million Web3 and social media fund in association with Polygon, an Ethereum scaling solution.
