- Rainbow is a fun, simple, and secure Ethereum wallet that helps users manage their assets. The platform was founded by Christian Baroni, Mike Demarais, and Jin Chung in 2019 to make Ethereum technologies more accessible to non-savvy consumers.
- Rainbow onboards casual users into Web3 in much the same way that Robinhood onboards casual investors into traditional equities. Users can pay for ETH using Apple Pay infrastructure and can connect to other wallets such as MetaMask. Unlike some cryptocurrency exchanges, Rainbow does not hold assets on the behalf of its users.
- Rainbow revenue generation is undisclosed, though it is likely the platform earns a commission from third-party cryptocurrency exchanges or other infrastructure providers. With a core focus on NFTs, the company may also take a percentage of NFT minting fees as a commission.
Rainbow is a fun, simple, and secure Ethereum wallet that helps users manage their assets. The platform was founded by Christian Baroni, Mike Demarais, and Jin Chung in 2019.
The trio came together with a mission to make navigating Ethereum technologies simpler for the average consumer. Baroni used to contract design for Microsoft while he was at high school and then took a job at Stripe at the age of 17.
Demarais immersed himself in computer design and website creation from a young age, dropping out of college to work as an engineer at several user-focused start-ups.
Chung, on the other hand, was a relative newcomer to the industry.
She majored in computer science engineering and would later write trading tools for equity derivatives and algorithms for eBay’s recommendation systems.
What resulted from this experience was Rainbow, which would become the world’s most well-known Ethereum mobile interfaces.
The company founders leveraged their unique backgrounds to create narrowly-tailored UI/UX to both on-ramp non-crypto users and facilitate new Web3 behaviors.
Rainbow is also the wallet of choice for NFT collectors, with the company envisioning a future world where friends can follow each other across the Metaverse.
More specifically, users will be able to showcase their on-chain history, on-chain collectibles, and on-chain access to others.
How does Rainbow work?
Rainbow onboards casual users into Web3 in much the same way that Robinhood onboards casual investors into traditional equities.
Users can purchase ETH or other ERC-20 tokens using Apple Pay infrastructure, with the process of on-ramping casual users into the Ethereum ecosystem taking no more than thirty seconds.
Unlike crypto exchanges such as Coinbase, Rainbow does not hold assets on behalf of its users.
Rainbow also enables users to:
- Send, receive, and trade assets from their wallet without going through a financial institution.
- Trade on the leading decentralized exchange Uniswap.
- Connect to dApps and websites such as Yearn, Aave, and Compound.
- Purchase and display crypto art from sites such as Foundation, Zora, and OpenSea.
- Showcase their favorite digital art on social media by sharing a Rainbow profile.
Importantly, users can also use an existing Ethereum wallet such as MetaMask with Rainbow.
How does Rainbow make money?
Like many cryptocurrency wallets, Rainbow charges transaction fees whenever a user performs actions like swapping currencies, sending assets, and minting NFTs.
Though exact revenue generation methods are undisclosed, many similar wallets earn commissions from a range of third-party services incorporated into the platform.
These may include cryptocurrency exchanges such as Changelly and fiat infrastructure providers such as Simplex.
The company may also charge a swap fee for users of Uniswap.
Rainbow also charges gas fees whenever a change is made to the Ethereum blockchain.
However, it should be remembered that the company is simply passing these fees to the user and does not profit from them.
The company has plans to introduce additional features to reduce gas fees by making the Ethereum ecosystem more efficient.
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