Rainbow Unveils ‘Points’ for Ethereum Users, Eyes MetaMask Community with Bonus

Rainbow, a cryptocurrency wallet service accessible via mobile and browser interfaces, has recently launched a novel points-based program. This initiative is aimed at rewarding existing users and drawing new ones into its fold, particularly from the Ethereum community.

The program kicked off on December 11, when Rainbow took a snapshot of user activity on the Ethereum blockchain. This snapshot serves as the cornerstone for determining initial eligibility for the rewards program. In a bid to encourage engagement, Rainbow has guaranteed a baseline allotment of 100 points to every Ethereum user, a move designed to incentivize participation on their platform. In a strategic push to tap into the MetaMask user base, Rainbow is offering an additional points bonus to those who have availed of MetaMask’s swap service over the past year. This bonus is calculated on the basis of their transaction volume, thereby rewarding higher levels of activity.

Rainbow’s strategy takes a page from what is known in the industry as a “vampire attack,” wherein projects entice users away from rival platforms by offering more attractive incentives. However, in a playful twist of terminology and direct reference to the well-known MetaMask logo, Rainbow characterizes its initiative not as a vampire attack but rather as a “fox hunt.”

Moreover, Rainbow has set aside a specific reserve of points for its dedicated user base and holders of Rainbow NFTs. Following the release of version 1.9.11 of its wallet application, these points will become redeemable, the company has stated.

The community is abuzz with speculation that these points might be converted into a future native cryptocurrency issued by Rainbow or might qualify users for an airdrop, a tactic that has gained traction in the crypto ecosystem as a way to reward and incentivize user participation.

In the broader context of the crypto space, such points systems are not unprecedented. Points are typically conferred as rewards for network participation or platform engagement, often acting as a precursor to the distribution of crypto tokens, as seen in airdrops. Numerous projects have embraced this approach; for example, Jito on the Solana blockchain rewarded its users with points for staking SOL, which later made them eligible for an airdrop. Similarly, the NFT platform Blur allocated tokens to users proportional to the points they had earned through platform engagement. Even though other projects like FriendTech, MarginFi, and Orbiter utilize points systems, they have yet to announce any specific token giveaways.

Rainbow’s foray into this points-based incentivization landscape follows its $18 million Series A funding round in 2022, which was led by Seven Seven Six, the venture capital fund founded by Reddit co-founder Alexis Ohanian. With this new initiative, Rainbow aims to fortify its position in the competitive market of crypto wallets by not just rewarding its current loyal user base but also by strategically reaching out to and capturing a segment of MetaMask’s community.