Reddit partners with FTX on Community Points scheme
Partnership means Reddit users can buy Ethereum from supported apps
Cryptocurrency derivatives exchange FTX has announced a global partnership with US social news, rating and discussion website, Reddit.
The deal lets Reddit users buy Ethereum (ETH) from supported Reddit apps through FTX Pay, which has been integrated as a white-label payment and exchange solution supporting Reddit’s Community Points blockchain token scheme.
Community Points are a “measure of reputation” among the Reddit community, which in subsidiary threads or categories, known as subreddits, are displayed next to usernames so “the biggest community contributors stand out from the crowd”, said FTX.
As Community Points live on the Arbitrum Nova blockchain, “users can take their reputation anywhere they’re recognised on the internet”. The crypto ETH “can be used to pay blockchain network fees for Community Points transactions on-chain”.
‘Harnessing the power of blockchain’
Sam Bankman-Fried, CEO of FTX said: “We’re excited to partner with Reddit to continue its work 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.”
Niraj Sheth, staff software engineer at Reddit, said: “We’re always working to empower communities and introduce new ways to use Reddit, and decentralised, self-sustaining blockchain technology allows us to do that. By working with FTX, we’re able to do this at scale.”
Reddit co-founder: 90% of games will pay users
In January 2022, Reddit’s co-founder Alexis Ohanian predicted that 90% of the gaming industry will adopt a play-to-earn (P2E) model within the next five years.
On an episode of the Where It Happens podcast, Ohanian discussed the lucrative reasons behind the increase of P2E games and the transformative use cases of blockchain technology within the sector.
Ohianian said that 90% of people “will not play a video game unless they are being properly valued for that time. In five years, you will value your time properly, and instead of being harvested for advertisements, or being fleeced for dollars to buy stupid hammers you don’t actually own, you will be playing some on-chain equivalent game that will be just as fun, but you’ll actually earn value, and you will be the harvester.”