SocialFi app Tomo has raised $3.5 million in seed funding and plans to improve its points.
SocialFi app Tomo closed a $3.5 million seed funding round led by Polychain Capital, with participation from Consensys, Symbolic Capital, OKX Ventures, Nomad Capital, Story Protocol, dao5, KuCoin Ventures, and HTX Ventures.
“We are thrilled with the support of our investors to help us innovate in the SocialFi environment,” Tomo founder Ryan Fang said in a statement. “Tomo’s mission is to pioneer a multichain Web3 social wallet that unlocks unique blockchain-based opportunities. Our vision extends to building a platform where every connection is direct and financially valuable.”
“At Polychain, we support founders and projects that enable new behaviors. We recognize Tomo’s role in introducing a huge new user base to the web3 space,” added Olaf Carlson-Wee, founder and CEO of Polychain Capital. “Tomo optimizes the distribution of value created at the intersection of creators and fans by adding financial incentives to the feedback loop already built into social media apps.”
Tomo did not disclose the valuation or round structure.
What is Tomo?
Like other SocialFi apps, such as leader FriendTech, Tomo uses a “key” system that allows users to purchase access to content and direct messaging from creators while moderating content according to community guidelines. Main transactions are denominated in USD but take place in Ether, with a 10% royalty fee shared equally between Tomo and the content creator.
The iOS and Android apps aim to simplify blockchain technology for social media users connected via Gmail, Apple ID, X or Instagram handles. Tomo integrates fiat onramping solutions through third-party partners to automatically set up non-custodial wallets using ERC-4337 technology and supports the affordable, scalable Ethereum Layer 2 networks Linea and Base incubated by Consensys and Coinbase, respectively. It is operated by .
ERC-4337, a major update introduced by core developers in March 2023, enabled account abstraction on Ethereum for the first time. Account abstraction allows wallets to act as smart contracts and operate sophisticated features such as multi-factor authentication and wallet social recovery.
Tomo currently ranks fourth in terms of total value locked in SocialFi apps, with nearly $1 million in assets, according to DeFiLlama data. FriendTech is leading the cryptocurrency niche with a base TVL of $40 million. Avalanche’s Arena and NOS’s Alpha take second and third places.
TomoID, Tomojis and improved points rewards
Along with the funding announcement, the platform also unveiled TomoID, a social wallet for content creators and enterprises. The platform features a link-in-bio tool and an affiliate program for cryptocurrency commissions and is said to have been launched in beta.
Tomo will also revamp its points system in the coming weeks to encourage early contributors and participants to engage with the app. Tomo has yet to confirm whether it will launch a token for the platform. But if so, points could become an important metric for retroactively rewarding users, the team told The Block.
The SocialFi app also allows users to create and trade ERC-404 tokens called “Tomojis.” This provides fractional ownership compared to traditional NFTs. Tomojis serve as collectible digital assets and functional emojis in the app and can also be traded on exchanges, Tomo said.
The four-person team combined Ethereum’s ERC-20 token standard with NFTs last February to create a new ERC-404 standard for semi-fungible tokens.
“Tomo’s SocialFi strategy is not another ‘bonding curve’ fork. The team is focused on the social aspect with a clear vision and innovative Web3-based ideas,” said Marco Monaco, Head of Growth at Consensys. “This investment is a testament to not only the team, but also the technology stack that serves as a reference implementation for dApps that aim to bring millions of dollars to Web3 (mobile apps, account abstraction, transparent connectivity, self-custodial, fiat entry and the Linea ecosystem).”
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