Video-focused social media platform Chingari’s crypto token $GARI has raised $40 million within 24 hours of its live sale on Republic platform, the company said in a statement.
Chingari will be using the funds to further strengthen its technology and mull engaging pieces to tap a wider creator base with unique offerings, the company said.
The latest raise follows a $19 million (around Rs 140 crore) fund raise by Tech4Billion Media, which operates short video-sharing platform Chingari from 30 venture funds and individual investors. The funds were raised using a token round. A token round is where investors invest in a startup by buying tokens of the project directly, which in this case is $GARI.
The company reportedly had scheduled its first token sale for November 2. Chingari had unveiled $GARI at a public event earlier this month at the hands of film star and the brand ambassador of the tech start-up, Salman Khan and had claimed to be the first social network in India to have issued crypto tokens.
The $GARI token is built on the Solana blockchain network, an up-and-coming cryptocurrency that is often seen as a competitor to Ethereum.
The company already has a system called Chingari Coins on the app, which allows users and creators to earn money for performing specific activities, like uploading original audio. These Chingari Coins can be redeemed for cash. It’s unclear whether $GARI will replace these coins or make the Chinagri Coins fungible with the new blockchain-based token.
The idea of having a virtual currency built into social apps isn’t particularly new. Chinese platforms like Bigo Live and TikTok also had systems similar to the Chingari Coin, although neither of those platforms used a real cryptocurrency. However, while coins like Chingari Coin exist within a platform and usually have no trading value, coins like $GARI are often traded on crypto exchanges. Such coins are also issued by sports teams and clubs.
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.