GetGems, the social messaging app with a built-in Bitcoin wallet, have announced that it has raised $400,000 from venture capitalist Magma Venture Partners. With the latest fund Gems, a new social messenger service that includes Bitcoin wallet and rewards its users for the use of the messaging service, thanks to its own altcoin named GEMZ, will further expand its reach.
The company says that users can transfer the GEMZ to other messaging users or withdraw them. On the other hand, Magma VC is trying to invest in the widely anticipated crypto 2.0 projects, which seeks to incentivize social messaging users through the use of GEMZ, a native token issued on Counterparty that allows users to profit from the platform’s growth.
Nonetheless, the investment has come at a time when GetGems’ is trying to do crowdsale to attract funds for its operations and research. The company has been quite successful in its pursuance and since its 1st December launch; it has raised $600,000 through the sale, bringing its total funding to roughly $1m.
Magma has thus entered into Bitcoin ecosystem with big huge investment and GetGems is the first company that has received the funds. General partner Ran Achituv says that the investment is just another example of how his firm is able to identify disruptive trends early. He admits that the company is looking for disruption, differentiation, distribution and a great winning team.
The Funds Will Help GetGems Scale Faster in Competitive Market
According to him his organization felt Gems has very good characteristics in all four parameters. Also as chat and value transfer is a growing trend; the company will further gain traction in the segment. He believes that GetGems was attractive as it is not wholly dependent on the price of Bitcoin, but rather leverages its technological benefits to provide value for consumers.
He says that the company is looking for investments that control their destiny on their own and create new solutions and value. Also, according to him his organization is seeing now is not directly on Bitcoin, it’s more trying to leverage the benefits of the technology for new use cases and capabilities.
Similar views were shared by GetGems CEO Daniel Peled who expressed his belief that Magma VC would in turn increase its chances of success in the long term. He said that the additional funding will help his company scale faster which is necessary since the mainstream instant messaging market is very competitive.
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