Thanks to a partnership with FTX, Reddit users will now be able to buy Ethereum directly in the social media platform’s app, the giant crypto exchange announced Tuesday.
Reddit users can now buy tokens through the platforms app.
The new collaboration involves a product called FTX Pay, which allows merchants to accept both crypto and fiat—and, in the case of Reddit, means users won’t have to leave the app to buy Ethereum.
The advancement may appear minor, but it is part of a larger effort to combine Reddit and blockchain technology such as crypto and NFTs, which the company has increasingly adopted. The company launched “community points” in 2020, allowing users in two subreddits to earn blockchain rewards for submitting “quality posts and comments.”
The points, which appear next to a user’s username, determine their reputation. They can be used within subreddits to give users with more points more influence in polls about how the group should be run, as well as to purchase special memberships and rewards.
The key point is that the community points exist on the blockchain and are fully owned by the users, allowing them to be used in other yet-to-be-developed applications, giving the points greater utility.
Bringing non-native crypto users to the game.
The collaboration with FTX indicates that Reddit wants to make community points more accessible to non-crypto natives. Using community points entails performing a transaction on the blockchain, necessitating users spending crypto, in this case, Ethereum, to pay network fees to validate the transactions. This process may be confusing to the average Reddit user. However, thanks to the FTX partnership, non-crypto savvy customers can buy the cryptocurrency they need to use their “community points” directly through the Reddit app with dollars.