Cryptocurrency wallet Rainbow made headlines by launching an innovative rewards plan called “Rainbow Points.” The system involves allocating points to Ethereum users based on their on-chain activity, including wallet balances and usage of decentralized apps and services.
The rewards program provides incentives for Ethereum users to participate in Rainbow. Users can import a MetaMask wallet, hold Rainbow NFTs, utilize Rainbow for swaps and transfers, and earn points by referring friends. These points could potentially lead to future token airdrops, similar to similar initiatives such as Blur’s rewards system.
Rainbow’s move is seen as a strategic shift that positions it as a competitor to MetaMask. Rainbow aims to challenge MetaMask’s dominant position as the leading gateway to decentralized apps by offering MetaMask users bonus points for fetching wallets and leveraging certain features.
“Bring your Metamask wallet to Rainbow to get up to 150,000 extra points as long as you used MetaMask’s swap feature in the last year.”
Rainbow’s approach has been likened to a “vampire attack” on MetaMask, cleverly referred to as a “fox hunt”. The platform’s cheeky criticism of MetaMask’s lack of features and rewards program hints at Rainbow’s confidence in providing a great user experience.
Image source: X.com @rainbowdotme
There is a lot of speculation about the possibility of converting Rainbow Points into a native token, mirroring the success of similar ventures in the cryptocurrency space. The initiative received significant attention, attracting over 400,000 wallets to the platform in one day, indicating a successful user acquisition strategy.
The enthusiasm surrounding Rainbow’s rewards program is clear, but experts caution users to exercise caution. Delegating your private keys or seed phrases to new services, including Rainbow, requires careful consideration due to security concerns.
Rainbow’s introduction of “Rainbow Points” has generated considerable interest, especially in its attempt to challenge MetaMask’s dominance. The platform’s tactics and reward system sparked discussion and attracted users. However, users must exercise caution while exploring the new platform, prioritizing security over rewards.