A fairly new platform, Rare Bits, is hoping to be the site of choice for people seeking to purchase digital currency. The startup just raised $6 million dollars, and has investors that include First Round Capital and Spark Capital.
Billing itself as the eBay of the blockchain world, Rare Bits provides a platform that assists in connecting buyers and sellers. The company profits off of a percentage of a developer’s revenue, if that person establishes a viable market for his or her assets. Rare Bits processed over $100,000 in transactions during its first month, back in February.
However, unlike digital currency wallets or exchanges, Rare Bits focuses on crypto-based products, but doesn’t actually sell cryptocurrencies. Customers can look through a catalog of over half a million digital items that the company offers, and find ones they want to purchase.
Amitt Mahajan, the Rare Bits Co-founder, who is also the co-creator of Farmville, designed the company with two Zynga alumni.
The company caters more to consumers who are familiar with cryptocurrencies, and feel confident using them. Despite the crypto market becoming more mainstream, Mahajan explains it can still be scary for newcomers.
“The issue with this today is, if I have nothing to do with Ethereum, I don’t know anything about it and I’ve never thought about it, why would I ever go out of my way to buy Ethereum and get involved in this ecosystem?” shares Mahajan.
He goes on to say, “In the final version of our product, we may not even mention the fact that we’re using Ethereum or using the blockchain,” he shares. “In an ideal world, you come to the site, you buy something you want, you exchange it, trade it [or] use it, but you don’t care or even need to know that the underlying technology is crypto-based.”
Rare Bits may even expand its platform in the future, to additional services like real estate, music licensing or software, Mahajan says. The company is currently working on verticals like Fan Bits, which would assist content producers and social media influencers in selling memorabilia to fans.
Mahajan explains,”Our goal is to bring people in who have never used crypto before and, without them even knowing it, help onboard them and get them to a place where they’re buying and owning stuff on the blockchain.”