The team behind the Ethereum wallet Rainbow announced the project has raised $18 million in a Series A funding round led by Alexis Ohanian’s venture capital firm Seven Seven Six. The new financing that follows the startup’s $1.5 million seed round will allow Rainbow to focus on “onboarding the next 100 million users to Web3.”
Ethereum-Based Rainbow Wallet Raised $18 Million
Rainbow, a non-custodial Ethereum (ETH) wallet that’s available for iOS and Android devices has announced the team has raised $18 million in a Series A investment round. The announcement notes that the financing was led by Alexis Ohanian’s venture capital firm Seven Seven Six. Ohanian’s Seven Seven Six has been giving a lot of attention to blockchain and Web3 startups during the last year.
Seven Seven Six, Polygon and Polygon launched a fund of $200 million to help Web3 social networking. Alexis Ohanian (tech entrepreneur) is known for his co-founding of Reddit, the news portal and social media platform. He also worked with Aaron Swartz and Steve Huffman. Ohanian, who invested in Heir Inc., an NFT project that seeks to link loyal fans with famous athletes, made the investment at Seven Seven Six’s social media fund.
The investment into the Ethereum-based wallet Rainbow follows the wallet project’s $1.5 million seed round, which brings Rainbow’s total fundraising to $19.5 million. Rainbow claims that 20 people have been hired by the startup and they are focusing on Web3 adoption. Rainbow wallet lets users display NFTs or Ethereum-based tokens. Users can also connect to decentralized applications (dapps) with the Rainbow wallet.
“Many crypto users, myself included, regard Rainbow as the best-designed wallet,” Alexis Ohanian, the founder of the venture capital firm Seven Seven Six said in a statement sent to Bitcoin.com News. “The talent of their team, their approach to design, and the advocacy of their users position them as leaders in the crypto wallet space. User experience matters so much — Rainbow design choices are the reason they’ve already built a cult following and continue to educate and onboard scores of new users to Web3.”
In 2022 there will be a host of competitors in Web3 Wallet. Rainbow Wallet Team plans to launch Swap Aggregator and Desktop Browser Extension.
Rainbow’s fundraise comes at a time when there is loads of competition in the Web3 wallet space, and Metamask currently leads the pack. Metamask’s August 2021 record of 10,000,000 monthly active users was broken. Metamask is expected to partner with Mycrypto in the future. Rainbow will be competing against wallets like Trust Wallet. Argent. Coinbase Wallet. Coinomi. Guarda Wallet. and Crypto.com Wallet.
In 2022, Rainbow plans to introduce new features which include a “Swap Aggregator” application. Furthermore, Rainbow users will be able to leverage “Ethereum Profiles” by utilizing the Ethereum Name Service (ENS). Rainbow’s team also noted that it plans to launch a tool kit in the future and the team is in the midst of crafting a desktop browser extension.
”There’s still a lot of unnecessary complexity in the Web3 user experience,” Christian Baroni, Rainbow’s CEO and co-founder remarked during the announcement. “Rainbow’s been focused on chipping away at that, simplifying where it’s possible to and educating where it’s not,” the co-founder added.
What do you think about the Ethereum-based wallet Rainbow raising $18 million from Alexis Ohanian’s venture capital firm Seven Seven Six? Please comment below to let us know your thoughts on this topic.
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