Bluesky, Incubated by Dorsey, Rejects Token Launch After $15 Million Series A Funding

Bluesky, the decentralized social network co-founded by Jack Dorsey, has successfully raised $15 million in a Series A funding round led by Blockchain Capital, focusing on expanding its user-centric services.

In a blog announcement on October 24, Bluesky emphasized its commitment to a non-financialized user experience, stating that it “will not hyperfinancialize the social experience” by launching a token. This statement comes despite its backing from a venture firm with a web3 focus.

The funding round also received support from other notable investors, including Alumni Ventures, True Ventures, and SevenX. While Bluesky did not disclose its valuation, the new capital is expected to bolster its growth, which has seen its user base exceed 13 million since transitioning to an open platform earlier this year.

As part of the investment agreement, Kinjal Shah, a general partner at Blockchain Capital, will join Bluesky’s board. Shah expressed enthusiasm for the platform’s vision of empowering users within a decentralized social media ecosystem.

In addition to the funding, Bluesky plans to introduce a subscription model that will offer enhanced features such as higher-quality video uploads and profile customizations. The company has reaffirmed its commitment to remaining free to use, highlighting its belief that “information and conversation should be easily accessible, not locked down.”

Despite these ambitious plans, Dorsey has distanced himself from Bluesky, voicing concerns over the platform’s alignment with traditional social media practices, particularly in moderation. His departure from the board has raised questions about the platform’s adherence to its decentralization goals, reminiscent of challenges faced during his time at Twitter.