Bitcoin tip/micropayment service ChangeTip received $3.5 million investments from BTC supporting foundations and entrepreneurs as part of the first financing round.
Pantera Capital, Bold Start Ventures, Crypto Currency Partners and 500 Startups are among the biggest investors of the Internet micropayment project launched in December 2013. ChangeTip intends to use the funds raised to expand the existing infrastructure and customer base: currently, more than 30,000 people are claimed to use the micropayment service on Twitter, YouTube and Reddit.
In ChangeTip CEO Nick Sullivan’s opinion, the integration of Bitcoin by online platforms has significantly simplified the creation of the concept of “social money”. Micropayment phenomenon in social networks is, basically, the expression of gratitude supported by a small amount of digital currency, and the driving force having great potential, explains Sullivan. If there were a million of ChangeTip users to leave a 1 cent tip each to a blogger or Internet community they would like to express their gratitude to, it would result in a total reward amounting to as much as $10,000.
Bitcoin tip system is a great illustrative example of the benefits of using Bitcoin protocol for making micropayments. You just can’t do it using the existing traditional payment systems, as paying commissions to intermediaries handling tips/micropayments would make such concept rather unprofitable.
According to Panter Capital CEO Dan Morehead, solutions like ChangeTip are a great reason for those still “being afraid” of Bitcoin-related “technical difficulties” to eventually start using it.