Widely-known image hosting site Imgur announced it has secured $20 million in venture equity from Coil, a micropayments tool for content creators.
According to a TechCrunch report, Imgur has approved to link Coil into its platform, which gets 300 million users monthly, to offer micropayments to users who view content.
The collaboration will also be marked by upcoming premium Imgur membership with exclusive content and features for subscribers of Coil. With a $5 monthly Coil subscription, creators gains per second the subscriber views their content at a rate of 36 cents per hour.
“Imgur began in 2009 as a gift to the internet. Over the last 10 years we’ve built one of the largest, most positive online communities, based on our core value to ‘give more than we take’” Imgur founder and CEO Alan Schaaf said in a press statement. “Coil’s technology will open up new opportunities for users to give to one another and support the community in new ways.”
The former chief technology officer of Ripple Labs, Stefan Thomas, founded Coil last year. Established to provide a means to pay creators for their labor, Coil’s subscription service is now available in beta, providing extensions for both Firefox and Chrome.
Similar to Spotify, Coil’s Web Monetization API automatically compensates creators in XRP depending on usage, while the user has a fixed subscription fee.
Thomas will be part of Imgur’s board. The company earlier secured $40 million Series A from Reddit and Andreessen Horowitz.