X competitor Bluesky is again grabbing headlines for all the right reasons

Bluesky is back in the spotlight, but not for taking swipes at Elon Musk’s X or trolling other platforms like Threads. This time, the decentralized social network is making waves for something that might make even its critics take a pause: securing a $15 million Series A funding round, led by Blockchain Capital, to drive growth across its burgeoning network of 13 million users.

Yes, Bluesky’s trajectory has often been painted with playful jabs at its competitors. After all, who could forget its viral digs at Elon Musk, the most recent one coming after Musk rolled out new API costs, throttling third-party developers? Bluesky was quick to jump in, with a post on X, of all places, extending a friendly invite to developers: “Developers, check out Bluesky’s firehose…which you can subscribe to for a grand total of $0.00!” It’s not every day that a competitor throws a lifeline on a rival’s platform, but Bluesky’s message was clear: it sees an open ecosystem as a fundamental right.

This new funding brings Bluesky closer to realizing that vision. Blockchain Capital, along with other key backers like Alumni Ventures and True Ventures, is lending not just financial support but also guidance. Kinjal Shah, from Blockchain Capital, will be joining the board to help Bluesky amplify its mission to create a user-first social media ecosystem.

And they’re keeping things fresh. Since its last fundraise, Bluesky has transformed from an invite-only app to a bustling community of over 13 million users, rolling out features that users love — like direct messages, GIFs, video, and even a public web interface.

Part of the latest funding will go toward creating a subscription model, not to limit access but to offer users options, like high-res video uploads and customizable profiles. Bluesky, however, promises not to turn into a “pay-to-win” social network. Its primary commitment remains the same: free access to an open conversation space that doesn’t rely on algorithmic favoritism or paid boosts. This comes after Bluesky’s algorithm was criticized for pushing furry and anime pictures on Discover page.

Bluesky’s ethos has resonated with users and developers alike, especially as frustrations mount with X’s new policies under Musk’s leadership. In fact, the timing couldn’t be better for Bluesky. When Musk’s X started blocking people in Brazil and making headlines for everything but its user experience, Bluesky became the go-to for millions in just days.

The funding also comes at a pivotal moment for Bluesky, which has seen an unprecedented surge in users, partly thanks to Musk’s controversial changes on X. In just two days, Bluesky gained over 1.2 million new users, riding a wave of discontent following X’s decision to allow AI to scrape user data and changes to the blocking feature.

12 Million Bluesky Users!

Wait a second I feel like we were just here with 11M like, a day ago?

Welcome everyone, glad you're here!

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— Jaz (@jaz.bsky.social) October 18, 2024 at 8:45 PM

This funding round sets the stage for Bluesky’s next chapter. With the support of Blockchain Capital and a growing community of users and developers, Bluesky isn’t just creating another social network. It’s building an open social ecosystem where users have real choices and control. So, while Bluesky may still throw the occasional jab at Musk and other social media giants, this time, they’re grabbing headlines for all the right reasons.