Rainbow, a self-custodial Ethereum pockets, debuted its native token RNBW yesterday, February Fifth. Nevertheless, the mission’s Token Era Occasion (TGE) on Base and the token’s buying and selling debut amongst exchanges adopted stories of delays in distribution to ICO individuals, which contributed to the token’s poor first-day efficiency.
RNBW/USD 15-minute chart, February Fifth-Sixth. Supply: Coinbase
In keeping with Coinbase knowledge, RNBW hit a excessive of $0.05 on its first day of buying and selling, however shortly fell, dropping greater than 30% to shut at round $0.034, giving it a completely diluted valuation of roughly $34 million.
In consequence, most bettors on Polymarket have been panicking, anticipating FDV to succeed in round $100 million simply sooner or later after the TGE.
At present, RNBW has fallen additional and is buying and selling at round $0.032 on the time of writing, giving it an FDV of round $32.17 million.
Buyers shedding cash in ICO
Costs are nicely beneath what preliminary patrons paid. Rainbow performed an preliminary coin providing (ICO) through CoinList in mid-December 2025, providing RNBW to traders at $0.1 per token. The sale noticed 30 million RNBW tokens, representing 3% of the full provide, offered at an FDV of $100 million, which means individuals within the sale have now misplaced greater than 65% of their funding.
The scenario might get even worse for US traders, as full token unlocking won’t happen till December of this yr, in accordance with CoinList’s phrases of service.
Again in 2022, Rainbow raised $18 million in a Collection A funding spherical led by Reddit co-founder Alexis Ohanian’s enterprise capital agency Seven Seven Six, bringing its complete funding to $21 million. Multichain wallets are recognized for his or her rewards packages and gamification that enable customers to earn factors for on-chain actions.
When the corporate first introduced the token in September, it explicitly linked RNBW to its factors system.
“There couldn’t be a greater day for TGE.”
The token’s fall got here amid a broader market disaster that worn out $2.6 billion in liquidations in a single day. The cryptocurrency’s market capitalization fell to $2.3 trillion as Bitcoin fell in direction of $60,000, about 50% beneath its all-time excessive of $126,080 set in October.
Shortly after the TGE, Rainbow co-founder Mike Demarais famous in a put up on
Amid rising frustration over the chaotic launch, Rainbow CEO Alex Laprade informed X on Thursday evening ET that he nonetheless believes “there has by no means been a greater day for TGE than at the moment,” noting that the mission had deliberate to launch its token on February 5 in December. Laprado added:
“TGE shouldn’t be the objective. With the token circulating out there, there will probably be extra scrutiny, each optimistic and unfavorable.”
Nevertheless, the CEO’s public statements didn’t achieve calming all traders. Some have been fast to hit again on the CEO, criticizing the mission for the delay in distributing tokens to ICO individuals and demanding refunds, calling it a rip-off.
Final yr, MetaMask confirmed that it had plans to launch its personal token after years of hints and hypothesis.
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