Bitcoin Tipping Platform Zapchain Shuts Down On August 31

Zapchain was once touted as a future mainstream Bitcoin use cases. The company had a very simple business model: everyone could submit content and ask questions. Users could then tip valuable answers of posts with Bitcoin payments. Unfortunately, the company announced they would shut down after seeing a significant decline in user activity.

Zapchain Comes At The End of The Line

Monetizing social activity with Bitcoin is a great concept on paper, but it is rather difficult to achieve. Zapchain found that out the hard way, ever since launching back in 2014.  As of August 31st, which is tomorrow, the company will shut down all of its services. A rather surprising turn of events, but not entirely surprising either.

Zapchain would let users ask questions allowing them to reward the most helpful answers. Bitcoin microtipping is an interesting solution for this type of purpose, albeit it was rather easy to abuse as well. Moreover, the incentive for people to reward others isn’t necessarily there, as there is no obligation to reward helpful answers either.

Despite these drawbacks, Zapchain received US$350,000 in funding in 2015. That is quite a significant amount for such a startup

Read more ... source: TheBitcoinNews