Reddit announced on Wednesday that it has partnered with the Ethereum Foundation, the nonprofit that supports the cryptocurrency Ethereum (ETH), in scaling and technology development.
What happened: The partnership is focused on getting ETH into Reddit production.
“Our intent is to accelerate advances in scaling and developing the technology needed to launch large-scale applications like Community Points on Ethereum,” a Reddit administrator said in a statement.
The scaling technology developed as part of the partnership would be open source and publicly available to everyone.
The blockchain effort is led by the Reddit crypto team.
Why it matters: Ethereum is the second largest cryptocurrency by market capitalization after Bitcoin.
Reddit introduced Community Points last year to give back ownership and control to its users through the use of decentralized technology.
The Community Points – still in the beta phase and built on Ethereum – reward users for individual contributions within a community.
Reddit has been in focus lately as the r / WallStreetBets subreddit has become a major engine for short positions like stocks GameStop Corporation (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC).
Price action: Ethereum was trading 2.11% higher at $ 1,316.29 at press time. Grayscale Ethereum Trust (OTC: ETHE) closed 6.56% at $ 14.25 on Wednesday.
Related link: Dogecoin up 62% as SatoshiStreetBets seeks to mimic WallStreetBets’ success with GameStop
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