Bitcoin tipping service ChangeTip has raised $3.5 million in a seed funding round led by Pantera Capital with the participation of Bold Start Ventures, CryptoCurrency Partners and 500 Startups.

The funding will be used to build out ChangeTip’s infrastructure as well as redouble its efforts in expanding its userbase.

“Tipping is likely to be bitcoin’s first killer app – seamlessly integrated into social media, enabling people to send money in a free, fun, instantaneous way without borders or minimums,” Pantera Capital CEO Dan Morehead said in a statement. “This could have a huge impact on bitcoin adoption.”

ChangeTip recently announced it has exceeded 10,000 user-generated Bitcoin tips in one day, and claims a userbase of over 34,000 people. ChangeTip not only makes it easy  for people to send Bitcoins to other people, it also makes it fun as you can set tip amounts to symbols (or words) such as “@changetip 1 beer” if “beer” were set to 50 mBTC or something similar would then tip that amount.

These milestones may have what triggered investors to take notice of the service. Investors believe ChangeTip is on the right path to make Bitcoin mainstream as it makes it easier to give Bitcoins. Moorehead echoed this belief, stating that ChangeTip could one day serve as a mechanism for people to receive their introduction to the industry as well as their first Bitcoins.

ChangeTip is clearly changing how people show their appreciation. Now, liking and favoriting a post or tweet is given real value, value that can actually be used to pay for things.

“The social media phenomenon of ‘tipping’, or expressing one’s appreciation over the Internet with small monetary or other digital gifts, is building momentum,” said ChangeTip CEO Nick Sullivan. “With ChangeTip, a million users can tip $0.01 and the content creator can collect his $10,000 – an impossibility in a legacy payments world.”

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