Benzinga | Jan 28, 2021 01:53AM EST

Reddit Ties Up With Ethereum Foundation To Hasten Bringing Community Points On Blockchain

Reddit said Wednesday it was partnering on scaling and technology development with Ethereum Foundation, the non-profit that supports the Ethereum (ETH) cryptocurrency.

What Happened: The partnership is centered on bringing ETH to Reddit-scale production.

"Our intention is to help accelerate the progress being made on scaling and develop the technology needed to launch large-scale applications like Community Points on Ethereum," a Reddit admin said in a statement.

The scaling technology developed through the partnership would be open-sourced and publicly available for anyone to use.

The blockchain efforts will be led by Reddit's crypto team.

Why It Matters: Ethereum is the second-largest cryptocurrency by market capitalization behind Bitcoin.

Reddit introduced Community Points last year purportedly to give ownership and control back to its users through the use of decentralized technology.

The Community Points -- still in beta and built on Ethereum -- reward users for individual contributions within a community.

Reddit has been in focus recently as the r/WallStreetBets subreddit has emerged as a major mover of shorted stocks like GameStop Corporation (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC).

Price Action: Ethereum traded 2.11% higher at $1,316.29 at press time. Grayscale Ethereum Trust (OTC:ETHE) closed 6.56% lower at $14.25 on Wednesday.

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