Cryptocurrency wallet Rainbow made waves this week with the launch of its new rewards initiative called “Rainbow Points.” On December 12th, Rainbow announced that they had taken a snapshot of all Ethereum blockchain activity and allocated points to Ethereum users based on factors like their wallet balances and usage of decentralized apps and services.
Keypoints
- Rainbow wallet launched a rewards program called “Rainbow Points” for Ethereum users based on their on-chain activity
- Users can earn more points by importing MetaMask wallets into Rainbow, holding Rainbow NFTs, using Rainbow for swaps/transfers, and referring friends
- This is seen as a “vampire attack” on MetaMask to lure users away, with Rainbow calling it a “fox hunt” against MetaMask
- Speculation that Rainbow points may lead to a future token airdrop, similar to Blur and other platforms
- Over 400,000 wallets are now showing on Rainbow’s leaderboard after the points announcement
While all active Ethereum wallets received a baseline level of 100 points, Rainbow offered additional incentives targeted specifically at MetaMask users. MetaMask is currently the most widely used wallet and gateway to decentralized apps, but Rainbow is positioning itself as a challenger by trying to attract MetaMask’s loyal user base.
Importing MetaMask wallets into Rainbow earns users up to 150,000 bonus points. Even more points go to those who have actively used MetaMask’s built-in token swapping feature over the past year, with the amount correlated to their swap volume.
Rainbow Points resemble similar rewards programs from other crypto startups looking to gain market share from rivals. When NFT marketplace Blur introduced points that later converted into the platform’s native BLUR token, it helped drive tremendous user growth and siphon activity away from OpenSea. Rainbow appears to be taking notes from this strategy.
Welcome to Rainbow Points — the first step towards including our community in the future success of Rainbow
Every Ethereum user has been dropped points today ????
Claim your points and start earning more by doing the things you already do onchain pic.twitter.com/UsUOOGxC0b
— Rainbow (@rainbowdotme) December 12, 2023
While comparisons to a “vampire attack” were made on crypto Twitter, Rainbow cheekily framed it as a “fox hunt,” calling out MetaMask’s popular fox logo. Rainbow even taunted MetaMask by stating, “Are you a MetaMask user looking to enjoy, not suffer through, Ethereum?”
The insinuation is that features like an easy onboarding experience, multi-chain accessibility, integrated swapping, and NFT support make Rainbow a preferable choice over the incumbent MetaMask. Rainbow also appealed to users frustrated over MetaMask’s lack of a native token or loyalty rewards to date.
Some speculate that Rainbow Points may ultimately convert into a forthcoming token reward. This would follow the lead of other crypto startups like Blur which dropped a valuable native asset on early supporters.
While Rainbow has not confirmed any potential token plans yet, it did state that the points program “is the first step towards including our community in the future success of Rainbow.”
The points initiative and anti-MetaMask messaging clearly struck a chord. Within 24 hours, over 400,000 wallets were appearing on Rainbow’s public leaderboard of top point holders. Crypto users on Twitter shared stories of downloading Rainbow only to discover crypto tokens or NFTs they never realized they owned.
The frenzied response suggests Rainbow successfully incentivized new users to try its wallet app. But experts warn users should still exercise caution with any new service that requires entering a private key or seed phrase. As more Web3 users try out Rainbow for the points potential, MetaMask may need to consider countermeasures like finally launching its long-rumored token.
#Rainbow #Points #Frenzy #Positions #Wallet #MetaMask #Killer
