FTX brings crypto exchanges to Reddit

  • Users can move Community Points from Reddit to Ethereum wallets built by Arbitrum and pay gas fees with FTX Pay
  • R/cryptocurrency forum members earned up to $340 in Community Points tokens for posting to the subreddit last month

In the latest example of FTX going on a massive buying spree in the bear market, the crypto exchange struck a deal with Reddit.

Crypto-fiat exchange platform FTX Pay integrates with Reddit and Arbitrum to allow users to pay gas fees on Reddit’s “Community Points” tokens using fiat. Community Points, rolling out in 2020, are blockchain-based Reddit tokens that allow users to distribute rewards and interact with the social platform

Reddit is a platform of choice for retail crypto investors – crypto was the platform’s most viewed topic in 2021. In July 2021, deployment solution Arbitrum won a competition to create an Ethereum rollup for Community Points, and now earning is launched on the Ethereum mainnet, the company announced on Tuesday.

Community Points allow subreddits to reward active members or make governance decisions.

Like all Layer 2 rollups, Community Points transactions are settled on Ethereum, and Reddit has enlisted the expansion-focused FTX to allow users to pay Ethereum transaction fees using fiat.

“Users need Eth for gas fees to transact with their on-chain community points, and FTX Pay lets them do that,” Amy Wu, head of FTX Ventures, said in an email. mail.

Community Points are, for now, only live in the r/cryptocurrency and r/fortnite subreddits, although Reddit does have a waiting list. Reddit airdrops point to active users – similar to how users receive “Karma” for upvoted posts.

Top r/cryptocurrency contributors earned 3,774 “Moons” tokens last month, or about $340 at current secondary market prices. A Reddit spokesperson said Community Points are only for community governance and “reputation points” on Reddit, adding that selling the tokens is against the site’s terms of service.

Steven Goldfeder, CEO of Offchain Labs, the developer behind Arbitrum, told Blockworks that he hopes to see new use cases emerge around Reddit’s crypto tokens.

“We’ve built the whole mechanism for deployment and security, but we’re also allowing others to grow into this ecosystem,” Goldfeder said. “It’s not just Reddit that launches Community Points. Others can tap into it. For example, a game developer can go ahead and say, ‘I’m launching a game and my in-game currency is these Reddit community points.”

Reddit’s crypto integration marks the latest example of a Web2 company buying into Web3 technology, following Instagram’s expansion of its NFT integration last week.

“Reddit has a massive community,” Goldfeder said, “How do you get a billion users on the blockchain? It’s by tapping into those existing communities and bringing them to the blockchain.


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  • Jack Kubinec

    blockages

    Editorial intern

    Jack Kubinec is an intern on the editorial team at Blockworks. He is a rising senior at Cornell University where he writes for the Daily Sun and is editor of Cornell Claritas. Contact Jack at [email protected]

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