Reddit, an online forum, seems to be moving closer to accepting cryptocurrency payments through a partnership with the FTX exchange after years of abandoning Bitcoin (BTC).
Reddit and Sam Bankman-Fried’s crypto platform FTX announced Tuesday in a joint statement that they intend to integrate Reddit Community Points in the United States and the European Union.
Reddit Community Points will be able to access new crypto-enabled perks through the integration of FTXPay as a payment and cryptocurrency exchange solution. Reddit Community Points were introduced in May 2020. They are a measure in reputation in communities and subreddits that allow users to own a portion of their favorite communities.
Points are a form of ownership that captures some of the community’s value. Reddit stated that they can be used to purchase premium features and as a measure for community reputation when it launched the Community Points in 2012. Reddit Community Points, which are based upon Arbitrum, the most Ethereum scaling solution, are created.
The new integration will allow users to buy Ether (ETH), from Reddit apps that are supported by FTX’s payment infrastructure platform FTXPay. You can use the cryptocurrency to pay network fees or blockchain gas fees for Community Points transactions.
“We are always trying to empower communities and bring new ways to use Reddit. The decentralized, self-sustaining blockchain technology allows for us to do this. We can do this at scale by working with FTX,” Niraj Sheth, Reddit software engineer said.
Bankman-Fried pointed out that the Reddit partnership signifies FTX’s commitment to empower online communities to use the power of Blockchain. He said that FTX Pay’s exchange and payment infrastructure is integrated with Reddit Community Points to make the customer experience more seamless.
This news comes as Arbitrum developer Offchain Labs launches the Arbitrum Nova Chain on Tuesday. Arbitrum Nova is the second chain to be launched in the Arbitrum ecosystem. It’s designed to be the best solution for Web3 games and social apps. Reddit, FTX and other companies participated in the launch, becoming inaugural members to Nova’s Data Availability Committee.
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Reddit is one of the most well-known websites in America. It has been involved in the blockchain and crypto industry for many years. Reddit is well-known for once allowing users the ability to pay for their premium memberships in Bitcoin, but this was removed in 2018.
Alexis Ohanian, Reddit’s co-founder, has been heavily involved in crypto since launching a $100 Million Web3 investment fund last January. In collaboration with Polygon, Ohanian launched a $200 million Web3 fund and a social media fund.