Rainbow, a cryptocurrency wallet accessible via mobile and browser, has launched a points-based program designed to reward current users and attract new users.
On December 11, Rainbow captured a snapshot of user activity on Ethereum, forming the basis for initial eligibility for the program. We have allocated a minimum of 100 points to every Ethereum user as an incentive to explore the platform. In addition, Rainbow is targeting users of the popular web3 wallet MetaMask by providing point bonuses based on transaction volume to users who have used the MetaMask swap service in the past year.
Rainbow’s points program is similar to a strategy commonly known as a “vampire attack.” This approach is usually used in projects to attract users from competitors by offering greater incentives. But Rainbow says this tactic “is not a vampire attack. The phrase “It’s fox hunting” is a reference to Metamask’s logo, which resembles a fox.
Rainbow has also reserved a certain number of points for current users and those who hold Rainbow NFTs, according to the announcement. Rainbow added that these points can be redeemed using version 1.9.11 of its mobile wallet application.
Although not explicitly stated, there is ongoing speculation that these Rainbow Points could be exchanged for native tokens issued by Rainbow in the future, or could enable users to receive airdrops.
In 2022, Rainbow raised an $18 million Series A led by Seven Seven Six, a VC fund founded by Reddit co-founder Alexis Ohanian.
What are points?
Typically in the cryptocurrency space, points are awarded as incentives for activities such as participating in networks or interacting with digital platforms. These accumulated points could potentially serve as a basis for distributing cryptocurrency tokens through airdrops, a strategy that has been adopted by several projects recently.
For example, Jito, a liquid staking protocol on the Solana blockchain, rewarded users with points for SOL staking. Similarly, NFT platform Blur distributed tokens to users based on the number of points they accumulated through their activities. Other projects that utilize a points system but have not yet announced token giveaways include FriendTech, MarginFi, and Orbiter.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.