ChangeTip Raises $3.5M for Global Social Media P2P and P2B Micropayment Platform Development

ChangeTip Raises $3.5M for Global Social Media P2P and P2B Micropayment Platform Development

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.

“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 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 $100, and since 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.

Because of these constraints, tipping over YouTube requires a $0.21 +5% 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 2003, 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 http://www.panteracapital.com/


Related News

ChangeTip Introduces A One Time Tip Link

ChangeTip, a bitcoin micropayment startup, announced the release of a new feature: the One Time Tip Link. This new feature allows users to send bitcoins over email, chat messages, Skype, SMS/text. Users can log into their ChangeTip account, navigate to "One Time Tip" and there they can choose the amount of money they want to tip. A link will be created, and the first person to click on the link gets the tip. Currently, ChangeTip exists on the social media networks people use every day, such as Twitter, Reddit, Google+, Youtube, Tumblr and others. It is a fast and simple way to show....

ChangeTip Brings Bitcoin Tipping to SoundCloud Amid Privacy Concerns

Social media has been around since the infancy of the internet, beginning with BBS and CompuServe in the '80s and '90s which allowed members to share files and access news and events. Now, Facebook and Twitter are arguably the kings of social media, but ChangeTip wants to lead a new era of social media where you can share more than cat pictures. ChangeTip aims to transform social networking forever by introducing "the money layer of social media." Recent integration with the social sound platform, SoundCloud, is evidence of ChangeTip's commitment to becoming the biggest platform dedicated....

ChangeTip Raises $3.5 Million in Seed Funding

ChangeTip, the viral social media tipping platform, raised $3.5 million in a Series A funding round led by Bitcoin investment firm Pantera Capital, with participation from DCG, CryptoCurrency Partners, Bold Star Ventures, and others. As mentioned in Pantera Capital's press release, the latest round of funding will be allocated towards bettering the platform's infrastructure by focusing on "product enhancement, platform engineering development, and user acquisition." Already a craze on leading social media channels, ChangeTip claims to have brought over 50,000 users to the Bitcoin....

ChangeTip To Offer ChangeTip Wallet, a Decentralized Platform to Send and Receive Bitcoin

ChangeTip, a social media tipping service, has launched ChangeTip Wallet. a blockchain-powered, decentralized platform that provides a way to send and receive bitcoin online. ChangeTip Wallet combines the ease and convenience of ChangeTip with the ownership of private keys. ChangeTip, the flagship product of Silicon Valley, Calif.-based ChangeCoin, allows users to express appreciation and pay people via monetary tips. The tips are sent within the context of each social platform, allowing users to transact in the normal course of their Reddit, YouTube, Facebook, Twitter, Slack and other....

Is ChangeTip the Viral Bitcoin Killer App?

Today's Reddit frontpage has several threads about a recent surge of popularity of Change Tip. One is titled "Changetip is causing bitcoin to go viral right now," and another was started by the ChangeTip team to say that they are working hard to keep up with the growing volume of tipping via their platform. ChangeTip wants to be "a Love button for the Internet," a fast and simple way to show appreciation with a micropayment in Bitcoin via the main social networks. You can send a tip to a Twitter user with a tweet that includes @changetip, the twitter-id of the user preceded by @, and the....