Rainbow, a mobile cryptocurrency wallet with support for non-fungible tokens (NFTs), has raised $18 million in a Series A funding round led by Alexis Ohanian's venture firm Seven Seven Six, TechCrunch has learned.
Although it's unclear how the company plans to use the proceeds, Rainbow Co-Founder Mike Demarais told TechCrunch that the wallet is focusing "heavily on the mobile experience where MetaMask holds less of a presence."
None of us would be here without MetaMask… we love MetaMask for moving the space forward, but fundamentally the name of the game is being the app on people's home screens.
The investment comes after Alexis Ohanian revealed that his second venture capital firm 776 Management LLC raised $510 million with a focus on crypto startups.
The move correlated with analysts' projections that mergers and acquisitions of crypto wallets are set to explode in 2022. In an interview with Blockworks, Ryan McCulloch, an investment banking associate at M&A advisory firm Architect Partners, said that traditional financial companies are going to put a lot of money in digital wallets:
The acquisition of digital payment wallets and secure payment wallets is going to be huge, and there’s a continued need for that from the larger institutions.
Last May, Mike Novogratz's firm Galaxy Digital announced plans to acquire BitGo for $1.2 billion. However, the deal is yet subject to regulatory approval.