- Polychain Capital led a $3.5 million seed investment round for the Web3 social app Tomo.
- The website also revealed plans to update its point rewards program and include a new TomoID wallet feature.
The $3.5 million seed investment round for the socialFi app Tomo has completed, lead by Polychain Capital. Symbolic Capital, Consensys, OKX Ventures, Nomad Capital, Story Protocol, dao5, KuCoin Ventures, and HTX Ventures are among the investors that participated.
Ryan Fang, the founder of Tomo, said in a statement, “We are thrilled by the support from our investors, enabling us to innovate in the SocialFi landscape.”
The goal of Tomo is to create a multichain Web3 Social Wallet that opens up special prospects made possible by blockchain technology. Our goal goes beyond creating a platform where each direct, financial, and valued relationship is made.
At Polychain, we support entrepreneurs and initiatives that facilitate novel behaviors. Olaf Carlson-Wee, the founder and CEO of Polychain Capital, continued, “We acknowledge Tomo’s role in introducing an immense new user base to the web3 space.”
“By adding monetary incentives to the feedback loops already present in social media applications, Tomo maximizes the value distribution produced by the meeting point of fans and creators.”
Tomo did not reveal the round’s structure or valuation.
Who is Tomo?
Like early adopter FriendTech and other SocialFi apps, Tomo allows users to purchase access to producers’ material and direct messaging. material is moderated in accordance with community norms. Important transactions are conducted in ether but are shown in USD. Tomo and the content producer split the 10% royalty fee evenly.
Using their Gmail, Apple ID, X, or Instagram usernames as connections, the iOS and Android software seeks to make it easier for social media users to become familiar with blockchain technology. Through third-party partners, Tomo incorporates fiat on-ramping solutions.
It runs on the more affordable, scalable Ethereum Layer 2 networks, Linea and Base, which were developed by Consensys and Coinbase, respectively, and automatically creates non-custodial wallets utilizing ERC-4337 technology.
In March 2023, Ethereum’s core developers released a significant version called ERC-4337, which allowed account abstraction for the first time. Wallets may function as smart contracts and run a variety of advanced features, such as wallet social recovery and multi-factor authentication, thanks to account abstraction.
Based on DeFiLlama data, Tomo is presently ranked fourth with around $1 million in assets locked in SocialFi apps. A $40 million TVL on Base puts FriendTech at the top of the cryptocurrency sector. Second and third place go to the Arena on Avalanche and Alpha on NOS.
TomoID, emojis, and updated point incentives
The platform also debuted TomoID, a social wallet for businesses and content creators that includes an affiliate program for cryptocurrency commissions and a link-in-bio tool. According to the developers, TomoID was just released in beta.
In the upcoming weeks, Tomo plans to update its point system to better reward early donors and users for using the app. Tomo has not yet stated if it will introduce a coin for the network. The team told The Block that the points might be a crucial indicator for rewarding users in the past, if and when that happens.
In addition, users of the SocialFi app can generate and exchange “Tomojis,” which are ERC-404 tokens that give fractional ownership in contrast to conventional NFTs. According to Tomo, tomojis are useful emoticons on the app that can also be exchanged on marketplaces and operate as collected digital assets.
In February, a group of four people merged NFTs with Ethereum’s ERC-20 token standard to produce the new ERC-404 standard for semi-fungible tokens.
“Tomo’s SocialFi approach goes beyond another ‘bonded curve’ divergence. Consensys Growth Lead Marco Monaco stated, “The team prioritizes the social aspect with a clear vision and creative Web3-native ideas.”
“This investment is not just about the team; it’s also about a tech stack that includes a mobile app, account abstraction, transparent bridging, self-custody, fiat onramp, and collaboration with the Linea ecosystem. It serves as a reference implementation for dApps that aim to bring millions of people into Web3.”
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
