Short-video app Chingari raises $19 million in crypto funding
The funds consist of stablecoins, USDC and Tether, the company said. A stablecoin is a less volatile cryptocurrency, USDC and Tether are backed by the US dollar.
Founded in November 2018 by Sumit Ghosh, Deepak Salvi, Aditya Kothari and Biswatma Nayak, Chingari lets users download and upload short videos and shop for merchandise within the app, among other things. The Bengaluru-based rival of Instagram Reels, MX Takatak, Josh and Moj claims to have 30 million monthly active users and 78 million downloads so far.
The fresh capital will be used for product development as well as to launch a token called $GARI, which will be powered by Solana’s blockchain. The company will also use the funds to launch and grow creator monetisation avenues within the app through Web 3.0 tools.
“The token is a critical piece of the platform, enabling creators to set up their ecommerce space that includes physical merchandise, their NFT creations, and the ability for fans to fund their favourite artists,” according to a statement released on Friday.
“The future of a platform lies in its creators. On one side, we have an immense talent pool that needs to be explored, and rewarded with an ethical amount of monetization,” Chingari CEO Sumit Ghosh said in the statement. “On the other, while crypto experiences a rapid expansion in India, $GARI is poised to make it mainstream.”
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“We are infusing the two, through robust strategies and incorporation of the most promising industry advances. The result of this infusion is Social Tokens as the future of community platforms for creator monetisation. It is reaching new milestones as we speak,” he added.
According to Raj Gokal, chief operating officer of Solana Labs, collective ownership of social platforms like Chingari has the potential to upend the creator-platform relationship and unlock new monetisation avenues for creators.
“The Solana blockchain’s high throughput, low transaction fees, and fast finality make it a great foundation for platforms targeting global adoption,” he said.