ChangeTip, a service for sending bitcoin tips, launched on Facebook this week. The platform now lets the social network's billions of members transfer bitcoins to each other in tiny amounts, a capabil
ChangeTip, a service for sending bitcoin tips, launched on Facebook this week. The platform now lets the social network's billions of members transfer bitcoins to each other in tiny amounts, a capability the company unveiled at the North American Bitcoin Conference in Miami.
Nick Sullivan, ChangeTip's chief executive, pitched the feature as a milestone for cryptocurrency adoption. "This frictionless, instantaneous movement of money allows us to connect with each other in new and meaningful ways," Sullivan said. "Businesses are discovering that they, too, can harness micropayments to build and improve their businesses."
To tip on Facebook, users type a friend's name in a field beneath the main post header. The tip shows up as a wall post on the recipient's profile, which they can then claim. Senders can add a note to go with the bitcoin. ChangeTip also operates through a standalone Facebook app.
One limitation irritated enthusiasts. On other platforms where ChangeTip operates, users can tip in comment sections, a core feature for many. Facebook's restrictions prevent that. Dan Held, vice president of product management at ChangeTip, acknowledged the gap: "Due to the limitations placed on us by Facebook we can only tip by a wall post. We're looking at creative ways to enable tipping other ways."
Users responded positively to the rollout. On Reddit, people sent their first tips across Facebook. "Its WORKING..Just sent out 10 tips to Facebook friends…This will go viral fast!!," wrote Wvspecialkvw.
ChangeTip calls itself the "love button of the internet." The company built a following among Bitcoin enthusiasts who use it to reward posts they find valuable. Many backers think tipping opens bitcoin to people who've never used it, creating a path toward broader adoption and a new revenue stream for online creators.
The platform hit a milestone in December during the BitPay-sponsored Bitcoin Bowl, the college football game where mainstream personalities and crypto experts participated in a tipping surge.
ChangeTip started in December 2013 with access to a handful of platforms. Over the course of 2014, it expanded to more than 35 social media sites, including Google+, YouTube, Tumblr, and Github. Reddit and Twitter became its strongest channels. By now, ChangeTip had processed $80,904.18 in tips and claimed 60,575 active users.
On December 2, the company raised $3.5 million in Series A funding. Pantera Capital, a venture firm focused on bitcoin startups, led the round. "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," Pantera wrote in announcing its investment. Other backers in the round included 500 Startups, Boldstart Ventures, and CryptoCurrency Partners.
