Bitcoin Tipping Platform ChangeTip Shuts Down After Two Years in Business & $3.5 Million in VC Funding

San Francisco-based bitcoin tipping platform, ChangeTip, announced today it will be ceasing operations by the end of this month.

Nick Sullivan, CEO and Founder, explained in his Reddit post how the firm has been struggling to find a viable business model, after the ChangeTip's development team was acquired by Airbnb:
“In the spring of 2016, ChangeTip’s employees were acqui-hired by Airbnb, where most of us work today. Since then, we’ve been searching for the best outcome for ChangeTip, and unfortunately the only remaining option is to shut it down.”
According to Sullivan's post, tipping on ChangeTip will be turned off at the end of November, and existing users will only be allowed to withdraw funds. Alternatively, users can opt to donate their BTC balances to several charities.

While the innovative startup kicked off with a $750,000 capital infusion via a partnership between Blockchain Capital & Flight.vc, in May of 2014, and a $3.5 million seed funding round in December of 2014, which saw participation from prominent VC firms like Pantera Capital and 500 Startups, management has been unable to find a way to monetize the practice of BTC tipping.

Since launching, ChangeTip has acquired more than 100,000 active users. Mr. Sullivan mentioned in his closing letter that more than 350,000 tips have been sent by its users over the last two years.

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4 comments :

  1. What a loss, if you are thinking at statistics 3.5millions $ and 350.000 tips means at least 10$ a tip. 2 good years for this company. Thank you for these years

    34ZnTiyNpiTb3RKQhRzSGzq3H99vW6VCzv

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  2. As bitcoin becomes even more popular, It's so sad to see an authoritative Bitcoin tipping platform like ChangeTip go. ChangeTip was pretty much successful while it lasted.


    besides the shutting down, Changetip still remains a valuable startup for having contributed to the growth Bitcoin community.

    As the company shuts down, I wish the CEO and the entire company goodluck in future campaigns and projects.

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  3. Tippercoin is a good alternative if you are promoting through twitter. Xapo also has a functional tipping feature.

    13XWgUqTWCLyNiQD7EGGhB7KwT7SYcqpta

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  4. ChangeTip's demise is somewhat synonymous with the inherent difficulties tipping platforms will have until a successful formula can be found to make them economically viable.


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