The success of the recent airdrop frenzy on Solana seems to be having an effect on other projects. The cryptocurrency wallet Rainbow has now introduced a point system, promising users points for migrating from Metamask to Rainbow. These points may eventually lead to an airdrop of the project’s token.
Under this new scheme, almost any user of an Ethereum wallet qualifies for Rainbow points. Extra points are awarded for prior interactions with Metamask swaps or owning a Rainbow NFT.
Even those who have not used Ethereum or Metamask can earn points by registering an account and swapping crypto on Rainbow, or sharing a referral link. Essentially, the more users one brings to the wallet, the more points one can accumulate.
Recent data suggests that this strategy is working. Two days ago, the app had about 400,000 registered users on the leaderboard. Now it boasts over 6.3 million, with the number still rising.
Not all of these accounts are necessarily unique individuals; there might be multiple accounts created by airdrop hunters. However, a significant number are likely to be real users.
Dune Analytics data also indicates a sharp increase in the number of swaps on the Rainbow platform, nearly sevenfold since November. With swaps generating points, it is no surprise that users are actively using the swap feature.
This tactic, known as a ‘vampire attack’, has been employed by many projects. A notable example is the NFT marketplace Blur, which enticed traders away from market leader Opensea with its points/airdrop, and has since dominated NFT volume.
Interestingly, Rainbow has playfully referred to their strategy not as a vampire attack but a ‘fox hunt’, an apparent nod to Metamask’s fox logo.
Rainbow Wallet has been a part of the crypto space for some time. According to Crunchbase, the project started in 2019, raised a $1.5 million seed round in 2020, and completed an $18 million Series A round in 2021.
However, this is the first time the project has garnered such significant attention from the crypto community. It will be interesting to see if they can capitalize on this recent hype and maintain user interest and engagement over the long term.