<\/p>\n
The launch was plagued by reports of delayed token distribution to early investors and technical issues. <\/p>\n
Self-custodial Ethereum<\/a> wallet Rainbow debuted its native token RNBW yesterday, Feb. 5. But the project\u2019s token generation event (TGE) on Base<\/a>, and the token\u2019s debut for trading across exchanges, were met with reports of delayed distribution to ICO participants, which contributed to the token\u2019s poor day-one performance. <\/p>\n According to Coinbase data<\/a>, RNBW hit a high of $0.05 on its first day of trading, but fell quickly and closed the daily session around $0.034, down more than 30%, putting its fully diluted valuation around $34 million. <\/p>\n That left most bettors on Polymarket scrambling<\/a>, having expected the FDV to hit roughly $100 million just a day after the TGE.<\/p>\n Today, RNBW fell further, trading around $0.032 by press time, making its FDV around $32.17 million. <\/p>\n The price is far below what early buyers paid. Rainbow conducted its initial coin offering<\/a> (ICO) in mid-December 2025 via CoinList, where investors were offered RNBW at $0.1 per token. The sale saw 30 million RNBW tokens, or 3% of total supply, sold at an FDV of $100 million, meaning participants in that sale are now down more than 65% on their investments.<\/p>\n For U.S. investors, the situation could be even worse as their full token unlock won\u2019t happen until December of this year, according to CoinList\u2019s terms and conditions.<\/p>\n Back in 2022, Rainbow raised $18 million<\/a> in a Series A funding round led by Seven Seven Six, the VC firm from Reddit co-founder Alexis Ohanian, bringing total funding to $21 million. The multi-chain wallet is known for its rewards program<\/a> and gamification, where users can earn points for their on-chain activity. <\/p>\n The firm explicitly connected RNBW with its points system when it first announced<\/a> the token in September. <\/p>\n The token\u2019s drop came amid a broader market bloodbath<\/a> that wiped out $2.6 billion in liquidations in a single day. Total crypto market capitalization fell to $2.3 trillion as Bitcoin slid toward $60,000, reaching roughly 50% below its all-time high of $126,080, set in October.<\/p>\n Soon after its TGE, Rainbow\u2019s cofounder Mike Demarais indicated in an X post<\/a> that some users had not received their claimed tokens, explaining \u201cit\u2019s because our backend token indexer has been getting slammed.\u201d<\/p>\n As frustration over the messy launch mounted, Rainbow CEO Alex LaPrade took to X<\/a> on Thursday evening eastern time to say he still believes \u201cthere was no better day for TGE than today,\u201d noting that the project had planned to launch its token on Feb. 5 back in December. LaPrade added:<\/p>\n \u201cTGE isn\u2019t the finish line. Having a token live in market brings more scrutiny \u2014 both positive and negative.\u201d<\/p><\/blockquote>\n But the CEO\u2019s public statement didn\u2019t succeed in calming all investors. Some quickly fired back at the CEO, accusing the project of late token distribution<\/a> to ICO participants, calling<\/a> it a scam and demanding refunds.<\/p>\n Last year, MetaMask confirmed<\/a> that it has plans to launch its own token, after years of hinting and speculation<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" The launch was plagued by reports of delayed token distribution to early investors and technical issues. Self-custodial Ethereum wallet Rainbow debuted its native token RNBW yesterday, Feb. 5. But the project\u2019s token generation event (TGE) on Base, and the token\u2019s debut for trading across exchanges, were met with reports of delayed distribution to ICO participants, […]<\/p>\n","protected":false},"author":2,"featured_media":418944,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-418943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/418943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=418943"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/418943\/revisions"}],"predecessor-version":[{"id":418945,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/418943\/revisions\/418945"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/418944"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=418943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=418943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=418943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}ICO Investors in the Red <\/h2>\n
\u2018No Better Day for TGE\u2019<\/h2>\n