TipJar – the micropayment service that focuses on cryptocurrencies, has announced its plans to cease operations in the first quarter of 2020.
The company arrived at the decision after its cryptocurrency tipping service failed to catch on. According to a Reddit post on October 6, a developer (u/doppio) pointed out that other users should withdraw their remaining funds still held in their accounts. The developer advised that the Reddit bot for TipJar, which handles automated payments, would stop functioning immediately, and the website would follow “in six months.”
The developer said:
“I had a great time creating this service, and it was fantastic seeing all the engagement when it was being used actively, but lately there has been very little activity on the bot.”
Micropayments on the Ethereum Blockchain
TipJar was designed on the Ethereum blockchain to provide micropayments on social media in various digital currencies. Established in 2017, the service led to a continuous decline in altcoin markets.
“I have been paying the monthly server fees for several years, and although they are pretty minimal, at this point it doesn’t make much sense for me to continue putting money into the service when it’s going unused.”
The developer further suggested the introduction of an open-source code once the shutdown is complete. If that happens, it will be a prayer answered for many users.
“I have been asked a lot about making the code open-source, which I have been hesitant to do before doing a more rigorous analysis of the system’s security, but I would be happy to make the code open-source when the service is no longer running,” the post concluded.
TipJar Experienced Tough Market Challenges
When the concept was first launched, crypto tipping acquired considerable attention. However, the experience of TipJar is not new. A fellow tipping service ChangeTip witnessed a similar occurrence in 2016, when it also disappeared, even after raising $3.5 million in a seed funding round.
TipJar’s closure happens at a time when the crypto market is hard-hit, with many investment preferences shifting from blockchain to Bitcoin-allied businesses.
Feature Image: The Second Spirit