Ethereum Wallet App Rainbow Raises $18 Million to Make Web3 More Accessible


Ethereum Wallet App Rainbow Raises $18 Million to Make Web3 More Accessible

Key highlights:

  • Rainbow has raised a $18 million Series A led by Alexis Ohanian’s Seven Seven Six
  • Rainbow is a mobile wallet for Ethereum that emphasizes user-friendliness
  • The funding will help the wallet integrate new features like a token swap aggregator and the Ethereum Name Service

Ethereum wallet app Rainbow raises $18 million Series A

Mobile Ethereum wallet Rainbow has raised a $18 million Series A round led by Seven Seven Six, a venture capital firm started by Reddit co-founder Alexis Ohanian. The Series A round is a follow-up to a $1.5 million seed round raised by the company. The company’s valuation wasn’t disclosed publicly. 

The Rainbow app allows users to store and manage ETH and other tokens on the Ethereum network, including NFTs. The app can also connect to decentralized applications like DeFi protocols and NFT marketplaces. Rainbow also serves as an on-ramp into crypto, as it supports ETH purchases via Apple Pay. 

Currently, the Ethereum wallet sector is dominated by MetaMask, which had 21 million monthly active users as of November 2021. While MetaMask is almost ubiquitous among desktop users, it’s not quite as entrenched on mobile devices, where Rainbow is aiming to gain a significant chunk of the market share. 

Rainbow has gained a dedicated community of users thanks in large part to its colorful and user-friendly design, which is meant to simplify some of the more complex aspects of using cryptocurrency and blockchain technology. Rainbow CEO Christian Baroni commented on the “unnecesary complexity” that users currently have to deal with when trying to interact with web3:  

“There’s still a lot of unnecessary complexity in the web3 user experience. Rainbow’s been focused on chipping away at that, simplifying where it’s possible to and educating where it’s not. There’s a lot of work to do, but Rainbow is headed far beyond where wallets are now.”

Alexis Ohanian also highlighted the app’s design as a reason why Rainbow is suitable for onboarding new users to web3:

“Many crypto users, myself included, regard Rainbow as the best designed wallet. Rainbow’s design choices are the reason they’ve already built a cult following and continue to educate and onboard scores of new users to Web3.”

The fresh capital from the Series A round will help Rainbow launch new features like a token swap aggregator that will help users find the most efficient route for their token swaps. The wallet also plans to integrate the Ethereum Name Service, which associates human-readable names with Ethereum addresses. 

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