Lyra Martin Tech 08.14.2022 21:Aug PM EDT

Reddit, FTX Partnership Allows Redditors to Buy Crypto on the Platform

Users may now purchase Ethereum on Reddit. Using FTX's payment platform, they may manage their blockchain-based community points.

FTX Announced Reddit Users May Control Blockchain-Based Community Points

Through a connection with FTX, the cryptocurrency exchange run by billionaire Sam Bankman-Fried, Reddit now allows users to buy Ethereum on the site. In a news release, FTX revealed that Reddit users may now manage their blockchain-based community points via the company's payment system, FTX Pay.

Reddit launched community points in 2020 to reward community participation. These points are stored in a user's blockchain-based "Vault," which holds collectible NFT (non-fungible token) avatars. These are Ethereum blockchain-based points.

Reddit's community points may be used to earn memberships, vote on problems, recognize creators, and provide tips. A user's community points indicate their site's reputation. Reddit aims to expand community points beyond r/Cryptocurrency and r/ForniteBR.

As community points are kept on the Ethereum blockchain, using them will cost gas or the cost of a blockchain transaction. Some people may not have or know how to obtain Ethereum, as Fortune noted. Reddit's partnership with FTX will allow users to convert fiat money (such as USD) to Ethereum to pay for community points, making them more accessible to people unfamiliar with cryptocurrencies.

Amy Wu, CEO of FTX Ventures, says, "Users require Eth for gas costs to trade with their Points on-chain, and FTX Pay lets them accomplish so." Reddit is a leader in using blockchain technology to give online communities authority and ownership over their communities. We're thrilled to accompany them and their customers on this adventure!

The FTX Reddit integration may be considered Bankman-wager Fried's on the sustainability of Reddit's meme stock phenomenon. It makes it easier to acquire Ethereum on the site. Reddit subreddits like r/WallStreetBets boosted GameStop stock last year.

In May, Bankman-Fried said that Robinhood had a 7.6% stake. Speculations say that he might buy the business. Last month, FTX started offering regular trading in US stocks.

After Its Bankruptcy, Celsius' Reddit Users Battled for Their Money

In Celsius Network LLC's 47,000-member Reddit forum, members discussed how much money they made by lending coins over the network. After the company entered bankruptcy, members used the site to fight for their money.

Reddit, Telegram, and Twitter users that fueled the meme-stock mania are now advocating for cryptocurrency bankruptcy cases, including Celsius and Voyager Digital Ltd. They're using both platforms' massive social media followings to encourage people to write the court hearing Celsius's case, raise money for legal defense, and exchange news and tips.

The 'Celsius Custody Accts' Telegram group has more than 950 members since being posted on Reddit. According to Telegram and group leader David Little, several dozen people have paid $1,500 or more to join the Togut, Segal & Segal LLP-represented committee. Others have contributed a few dollars.

Bringing the group together was simple because Celsius had previously worked hard to build its community. The CEO, Alex Mashinsky, often hosted YouTube ask-me-anything sessions and Twitter Spaces.

There's also a Telegram channel for Voyager users who spend $5,000+. Reddit is recruiting 175 followers. The goal is to share information and "explore prospective legal action," as one Reddit user put it.

Thomas Braziel, the managing partner of 507 Capital, which has acquired creditors' rights in prior crypto bankruptcy, participates in five Telegram channels formed by Celsius creditors alone. He stated he's experienced in more than 10 Twitter Spaces on recent crypto bankruptcy to support tiny claim holders.

Braziel says Celsius creditors are forming more ad hoc investment groupings. Most use Telegram and Reddit.