Web3 Communication Protocol XMTP Raises $20M in Series A Round
Coinspeaker
Web3 Communication Protocol XMTP Raises $20M in Series A Round
Extensible Message Transport Protocol (XMTP), a new communication protocol designated for Web3 has raised $20 million in a Series A funding round which was led by a16z Crypto Investments. According to a message to the community by Co-Founder and CEO, Shane Mac, other participating investors includes Austin Rief from the Morning Brew, Ryan Selkis from Messari, Diogo Monica from Anchorage, Meltem Demirors from CoinShares, and Nikil Viswanathan from Alchemy.
As a project looking to make a difference in the decentralized ecosystem, the group of investors landed will notably play a more crucial role in bringing in their expertise in email, chat, messaging, security, DeFi, DAOs, NFTs, blockchains, wallets, decentralization, governance, and other specializations that makes the new web ecosystem a well functioning one.
The capital injection according to Shane will be used in expanding the startup’s staff network.
“With this new capital, we have an open road to building the base layer communication protocol for the next web. We’re excited for this to unlock an opportunity to find more people who want to join us in that mission,” Shane said, adding that “the primary factor in raising this capital is supporting our recruiting efforts. We wanted to share some additional insight into our future, our motivations, and the scale of our ambitions.”
The XMTP Web3 Protocol and the Need to Connect Crypto Entities
With the advances in today’s cryptocurrency and decentralized ecosystem, XMTP has highlighted the need for prompt communications amongst crypto wallets. The project seeks to offer an alternative to the centrally managed social media platforms around today. The focus is to re-empower users with total control over their data.
“XMTP is a fundamental new building block of the next iteration of the web—a permissionless, crypto-native communication protocol that connects communities, creators, protocols, applications, and users. Today’s messaging platforms are walled off and centrally controlled, email is rampant with spam, and chat apps are rife with ever-accumulating scams. We’re here to build a better way for the world to communicate, established on a decentralized network that’s owned by its users, and that aligns incentives among participants in that network,” Shane added.
Amongst the outlined use cases for the protocol include Enabling authenticated messaging from verified wallet/contract owners for verified support & outreach purposes. Additionally, the solution being flaunted by XMTP will allow the direct messaging of digital wallets should there be a specific issue within a platform that affects just the user. The XMTP protocol will not only prevent spam messages all geared toward unsolicited ads or scams, it is bound to encourage the building of a unified, decentralized inbox that all Dapps can make use of.
There has been an increasing clamor for social media solutions targeting the decentralized web. Twitter Inc (NYSE: TWTR) is currently sponsoring an initiative to build a decentralized protocol dubbed Bluesky to govern social use in today’s advanced digital economy. The Bluesky project welcomed a new head, Jay Graber back in August.
Web3 Communication Protocol XMTP Raises $20M in Series A Round