Blum Raises $5 Million for AI Trading and Web3 Advancements

Blum, a gamified Telegram-based decentralized exchange (DEX), raised $5 million. The investment round was led by gumi Cryptos Capital, which also included participation from prominent venture funds like Spartan, No Limit Holdings, YZi Labs, OKX Ventures, and more

Blum plans to allocate the funds toward developing its Telegram-based trading platform.

Blum’s $5 Million Funding to Propel Blockchain and AI Trading

Blum’s rapid growth trajectory has garnered attention across the Web3 space. With its Telegram community surpassing 32 million members, it is now considered one of the largest communities in the crypto sector.

Since its official launch in July 2024, Blum has recorded notable achievements, including the highest on-chain activity with 2.2 million unique wallets. This fast adoption, coupled with the project’s transition from a tap-to-earn model to a trade-to-earn model, positions it as a major player in decentralized trading.

With $5 million funding secured, Blum intends to implement new features, including multichain support and the expansion of its trading bot. The latter has already attracted more than 1 million users and has become the largest trading bot in Telegram.

Additionally, the team plans to further develop its Blum Memepad platform, which is used to create meme coins within the same interface. This meme coin project leads The Open Network (TON) and ranks second globally, with over $200 million in trading volume, 200,000 tokens created, and 380 coins listed on DEXs.

The investors highlighted several key aspects of Blum that attracted their attention:

• High user activity
• Transition from the “tap-to-earn” model to the “trade-to-earn” model
• Potential to become the leading platform within the TON ecosystem, which currently lacks large DEX

“This funding marks a significant milestone for Blum as it will fuel the development of our trading features. We are profoundly grateful to our partners and early supporters for their confidence in our vision. From day one, Blum has captured the attention of both investors and users. Our funding approach was not merely about securing capital; it was about carefully selecting partners whose expertise and resources can amplify the user experience”, said Gleb Kostarev, CEO and Co-Founder of Blum.

Blum also received funding from The Open Platform (TOP) and Binance’s venture arm, Binance Labs.

Tap-to-Earn Decline and Blum’s Strategy to Retain User Interest

Telegram-based tap-to-earn crypto games, such as Hamster Kombat, Notcoin, and Catizen, are experiencing a swift decline in users. According to data from Google Trends, interest in “tap-to-earn” dropped by 80% from June to December 2024.

This trend in tap-to-earn projects illustrates the challenges platforms face relying solely on initial user incentives like airdrops. Blum has adapted its model. The project has already shifted away from the tap-to-earn strategy. Instead, it focuses on maintaining engagement through AI-powered trading and features that keep users invested in the platform long-term.

“Our mission is to create the ultimate trading app, designed with traders and the community at its core. We’re taking a deliberate approach, rolling out features step by step to ensure they’re done right. From a powerful multichain trading bot to a AI-driven Memepad and futures trading, we’re building a platform that offers everything a trader needs and beyond. With strong backing from leading investors and players, we’re confident that this process will accelerate significantly”, said Vlad Smerkis, CMO & Co-Founder of Blum.