Reddit just announced groundbreaking news for its platform. The well-known forum website recently made public its partnership with FTX in order to monetize Reddit’s community points.
Community points is a system implemented by Reddit in which users reward other users for good content. Now with the addition of the FTX crypto payment system named “FTX Pay”, Reddit users will be able to exchange community points via Ethereum-based transactions.
These community points were created in 2020, and are stored in the “Vault”, which is an Ethereum wallet that also stores Reddit’s NFT collections.
FTX comes to solve the issue that most Reddit users wouldn’t have the Ethereum necessary for these blockchain transactions. With FTX Pay, users can now exchange any Fiat currency for Ethereum.
Amy Wu, the head of FTX Ventures celebrated the news on Twitter.
“We believe that the best web3 products have thoughtful utility. Reddit Community Points represent reputation in the community.” Said Wu in a Tweet. “Users can take their reputation anywhere they want on the Internet.”
How will this news affect the Ethereum Market?
Reddit is the 20th most accessed website in the world. It counts with over 430 million users that interact across 130 thousand subreddits. Its users spread across the entire world and the website is becoming more famous with each day.
The news of hundreds of millions of users being able to use Ethereum for Reddit transactions has warmed up the crypto marketing.
Traders are getting ready to use their many strategies like the Wyckoff Strategy in order to capitalize in a market that is likely to be bullish after this news.
This partnership could very well be the push needed for the long-awaited “Flippening”, where Ethereum will replace Bitcoin’s place as the world’s leading cryptocurrency.
Not Reddit’s First Rodeo in the Crypto world
This is not the first time that Reddit has ventured into the crypto world.
A few years ago Reddit announced that they would start taking Bitcoin payments for the purchase of their exclusive membership “Reddit Gold”.
However, things didn’t go as planned. As the crypto market grew more volatile, Reddit announced in 2018 that they were gonna stop accepting Bitcoin as payment.
Also, Reddit’s co-founder Alexis Ohanian is an active Crypto investor. Ohanian launched a blockchain investment fund worth $100 million dollars in 2021, shortly thereafter he launched another fund worth $200 million.
What Does This Means for FTX?
One growing theory in the mouth of Crypto enthusiasts is that FTX’s SEO, Sam Bankman-Fried is looking to invest in the rise of the “meme stocks”.
“Meme stocks” were created in 2020 when the investment subreddit r/WallStreetBets banded together in order to save the gaming company GameStop from having its stock plundering.
This collaboration of Redditors proved to be so powerful that not only did they save the stock, but they also skyrocketed its price to unimaginable levels.
Earlier this year, Bankman-Fried acquired 7.6% Robinhood.
Robinhood is Redditor’s “go-to” trading platform due to the absence of commission in that platform’s trades. The acquisition of 56 thousand Robinhood stocks cost FTX nearly $648.3 million dollars.
Now, with FTX announcing a partnership with Reddit, the place where the meme stock trend was created, many are beginning to wonder if Bankman-Fried is looking into meme stocks as a way to capitalize.