Bitcoin Rewards App Fold Raises $13 Million in Funding
It looks as though the app Fold is the latest FinTech to cash in on the current crypto craze. Today, the company announced that it had raised an impressive $13 million. The Series A was led by Craft Ventures while M13, Slow Ventures, Bessemer Venture Partners also participated. With the funds, Fold intends to continue building out its rewards platform and also plans to enable other card issuers to offer Bitcoin rewards to their debit and credit card customers.
Fold is an app that allows users to earn Bitcoin rewards when they purchase gift cards for select brands. More recently, the startup has been rolling out a debit card that offers a gamified experience while also rewarding customers in Bitcoin. Specifically, after a customer makes a purchase using their debit card, they’re invited to spin a prize wheel, earning them a percentage of their purchase back in Sats, the chance to win 1 full Bitcoin, or other rewards.
According to Fold, between the 20,000 cardholders that helped test their debit card product as part of the early access program, customers transacted nearly $100 million since November of last year. Following that success, the company now says it will open access to all U.S. residents — including the more than 250,000 that were on the waitlist. Currently, cardholders can choose between the Spin and Spin+ plans. While the former has no annual fee, it does charge a $21 one-time activation fee. Meanwhile, the Spin+ option comes at a cost of $150 per year but waives the activation fee and includes enhanced rewards potential. Plus, on their plan comparison page, Fold alludes to the future debut of a credit card product as well.
Speaking to the popularity of the app and why it has attracted investors, Fold CEO Will Reeves explained, “We’ve pioneered Bitcoin rewards to make Bitcoin accessible to everyone. Between the appreciation of Bitcoin and our generous rewards, people have earned more money in their Fold rewards account over the last few months than they have in the savings accounts they’ve been building for years.”
Elsewhere, Meltem Demirors of CoinShares noted, “Since their launch, Fold has given out bitcoin rewards to over 100,000 unique users,” adding, “Consumers from all walks of life can easily earn bitcoin when they spend cash, which is driving a revolution in consumer finance by converting fiat spenders into Bitcoin savers.”
Despite the recent turbulence in the cryptocurrency market, Fold’s eight-figure Series A shows that there’s still tremendous interest in the space. Additionally, armed with these new funds, it seems as through Fold could move well beyond being a “Bitcoin rewards on gift cards” platform and help make crypto earning more common among the mainstream audience. With those lofty goals, it will be interesting to see how Fold’s upcoming products are received and whether even larger funding rounds are in their near future.