ChangeTip the popular social media tipping platform announced today that it has raised a $3 5 million Seed Round Bitcoin investment firm Pantera Capital is leading the round with participation from Bold Start Ventures DCG CryptoCurrency Partners 500 Startups and others This latest round of funding will be allocated towards product enhancement platform engineering development and user acquisition
ChangeTip is a Bitcoin-enabled social media tipping platform by which users can send any amount of money over 35 different social media platforms or content showcase channels including Twitter YouTube Reddit and GitHub Users can reward content creators with small amounts of money by way of a simple online comment or reply similar to how one would tip a street musician for an impressive performance or a waiter for quality service
Typical tipping events include people tipping one another for comment appreciation or as a gift people tipping to reward insightful publications or worthy content marketing material tipping favorite musicians actors writers or other public figures tipping songs or drawings tipping in place of the Like or Upvote buttons to give the action practical meaning tipping as a way to repay small debts and tipping as a way to make small donations to charities and other non-profit entities
The social media phenomenon of tipping or expressing one’s appreciation over the Internet with small monetary or other digital gifts is building momentum said Nick Sullivan ChangeTip founder and CEO With ChangeTip a million users can tip $0 01 and the content creator can collect his 10,000 – an impossibility in a legacy payments world ‘
Chief Executive Officer Nick Sullivan is a four time VP of Engineering producing million dollar projects for Yahoo Wikia and Krux Chief Operating Officer John Q Smith is a Silicon Valley veteran with two successful exits wielding over 20 years of software engineering and team building expertise Each member of the company’s four-person core has worked together on previous projects indicating strong team cohesion and all bring at least ten years experience in application development
Pantera Capital CEO Dan Morehead elaborated Tipping is likely to be Bitcoin’s first killer app – seamlessly integrated into social media enabling people to send money in a free fun instantaneous way without borders or minimums This could have a huge impact on Bitcoin adoption Years ago I received my first bitcoins free from Gavin Andresen’s Bitcoin Faucet When we look back in a year’s time there is a good chance that the majority will have received their first bitcoins free via ChangeTip ‘
ChangeTip connects over 50,000 social media or content showcase accounts The service facilitates transaction sizes ranging from $0 00001 up to , and since inception the company’s user base has grown % month-over-month High demand plus ease of use have ignited its recent viral adoption and use on Reddit and Twitter
Bitcoin’s advantages include global reach security due to decentralization speed negligible fees and no minimum transaction size Credit cards SWIFT ACH SEPA and other legacy payments rails maintain hard fee floors and minimum transaction speeds limiting the ability to transfer value optimally to others At certain price points sending money through these rails is too expensive too slow or too inconvenient
Because of these constraints tipping over YouTube requires a $0 21 % fee yet it’s becoming increasingly apparent that users are willing to tip less than minimum fees If a million viewers wish to tip $0 01 but not more than $0 22 for a viral video this revenue is lost for the content creator
About ChangeTip
ChangeTip is owned by San Francisco-based ChangeCoin Inc , a Delaware corporation ChangeTip allows people to express appreciation or pay other individuals or organizations via monetary tips ‘ Tips are sent natively within the chosen social media platform and allow users to transact seamlessly in the normal course of their Twitter Reddit YouTube and other social media interactions In this way ChangeTip represents not only the next level of financial payment infrastructure but also the next iteration of the Internet of Value
Utilizing Bitcoin blockchain technology the company’s platform allows instant transactions between two parties The company’s product suite includes the Tip Me widget which allows any content producer artist writer musician publication etc ) to accept tips via the ChangeTip platform
In keeping with American law and financial industry standards the ChangeTip service is not available in FATF non-cooperative and other blacklisted countries such as Liberia and Myanmar
About Pantera Capital
Pantera Capital is an investment firm focused exclusively on Bitcoin and the companies in the space Dan Morehead founded the firm in , where it initially focused on global macro hedge fund investment Benchmark Fortress Investment Group and Ribbit Capital are shareholders of Pantera Bitcoin Partners LLC a subsidiary of Pantera Capital For more information visit a href=”http://www panteracapital com target=”_blank”>www panteracapital com
