December 8, 2014
ChangeTip is a popular social media tipping platform. The company recently announced that it has raised a $3.5 million Seed Round. Bitcoin investment firm Pantera Capital led the round. Other investors included Bold Start Ventures, DCG, CryptoCurrency Partners, 500 Startups. This latest round of funding will be used for 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.
Typical tipping events include:
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, in an official press release. 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.
ChangeTip connects over 50,000 social media or content showcase accounts. The service facilitates transaction sizes ranging from $0.00001 up to $100. Since its inception, the company’s user base has grown 30% 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.