Dorsey-incubated Bluesky opposes token launch following $15m Series A funding round

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As a seasoned analyst with extensive experience in the tech and finance sectors, I find Bluesky’s decision to eschew financialization through tokens and NFTs intriguing. Having witnessed the meteoric rise of decentralized platforms fueled by tokenomics, it’s refreshing to see a platform prioritize user-centric design over monetization strategies.

The decentralized social media platform, Bluesky, has managed to secure millions through a Series A investment round headed by Blockchain Capital. This new funding will enable Bluesky to accelerate the growth of its services.

Bluesky, the user-focused social network co-founded by Jack Dorsey, has reiterated its commitment to a non-financialized social interaction model by declaring they will not introduce a token for monetizing users’ experiences.

As an analyst, I’m excited to share that our latest funding round, totaling $15 million, is spearheaded by Blockchain Capital, a venture firm known for its investments in Anchorage, BitGo, Coinbase, and more notable industry players. This round also received backing from Alumni Ventures, True Ventures, SevenX, and additional investors, as we announced in our blog post on October 24.

Without revealing its current valuation, Bluesky announced that the fresh funds would propel its growth momentum, as its user base has exceeded 13 million since it switched to an open platform this year. Although supported by a company focused on web3 technologies, Bluesky confirmed its stance to postpone the launch of a token.

[…] The Bluesky app and the AT Protocol are not based on blockchain technology or cryptocurrencies. We aim to keep the social experience free from excessive financialization, so you won’t find features like tokens, crypto trading, or Non-Fungible Tokens (NFTs) here.

Bluesky

In my role as a researcher, I am excited to share that under the terms of our partnership agreement, Kinjal Shah, a key figure at Blockchain Capital, will be joining Bluesky’s board. Kinjal, who aligns with our vision for a social media ecosystem that puts users first, brings a wealth of knowledge and expertise in decentralized technologies. We are thrilled to have her on board as we embark on this journey, investing in the widespread adoption of decentralized social platforms.

Furthermore, Bluesky plans to create a subscription service for advanced features such as enhanced video uploads and personalized profile options like color schemes and avatar borders. Bluesky assures users that the platform will always remain free, as they strongly believe that communication and information sharing should be readily available, not restricted.

“We won’t uprank accounts simply because they’re subscribing to a paid tier.”

Bluesky

Beyond just financing, Bluesky intends to establish a subscription service offering advanced features like superior video upload options and personalized profile adjustments. However, it’s important to note that the platform will continue to be accessible without charge for every user.

“We won’t uprank accounts simply because they’re subscribing to a paid tier.”

Bluesky

Although Dorsey was initially enthusiastic about Bluesky, he expressed discontent with its adherence to traditional social media norms, specifically in terms of moderation policies. This divergence in approach has led him to step away from the project, a move that has sparked apprehension among some observers who worry that the network may be straying from its original aim of promoting decentralization, much like the difficulties Twitter faced under his leadership.

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2024-10-25 13:24