Towns Protocol, a communication and collaboration platform designed for the Web3 era, has raised an additional $3.3 million in funding to further its mission of transforming digital community engagement.
The funding round, which closed in April 2025, was led by Coinbase Ventures via its Base Ecosystem investment division, Echo, with contributions from several strategic angel investors.
Announced through Towns’ official social media, the news quickly generated traction across the decentralized tech space.
The capital infusion signals rising investor confidence in Web3-native social infrastructure and reinforces Towns’ role as a pioneer in the sector.
Series B Funding Totals $13.3 Million With Backing From Major Investors
The new $3.3M investment extends Towns Protocol’s Series B round, which initially raised $10M with participation from major venture capital firms including a16z crypto, Benchmark, and Coinbase Ventures.
The development brings the total Series B financing to $13.3 million, a clear indication of the project’s momentum and credibility.
Coinbase Ventures’ participation in both the initial and follow-up funding rounds shows a strong, sustained belief in the platform’s potential.
The financial backing is expected to fuel the expansion of Towns’ infrastructure, attract new users, and accelerate the development of a decentralized social alternative that challenges traditional Web2 platforms.
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Building the Digital Town Square on Base Layer 2 Blockchain
Towns Protocol is being built on Base, Coinbase’s Layer 2 blockchain, and is designed to function as a decentralized alternative to traditional social media platforms.
Described as a “digital town square,” the platform allows communities to set their own governance structures, manage access permissions, and create bespoke communication environments.
Unlike centralized platforms that retain control over content and data, Towns puts power directly into the hands of users.
The model offers a transparent, user-governed space that encourages ownership and long-term community sustainability, positioning the platform as a foundational layer for Web3-native social interaction.
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Coinbase’s Echo Initiative Marks Towns as a Strategic Ecosystem Investment
The use of Echo, Coinbase Ventures’ new investment vehicle for the Base ecosystem, to lead this funding round signals a strategic shift in how Coinbase is approaching ecosystem development.
Towns Protocol is the first public investment under Echo, highlighting its priority status within Coinbase’s broader Web3 strategy.
The move reflects Coinbase’s belief that decentralized, community-owned platforms like Towns will be critical to the future of digital interaction.
Echo’s involvement provides more than just capital, it establishes an institutional partnership that can guide and scale the platform within the larger Base ecosystem, reinforcing its long-term viability and influence in the decentralized internet landscape.
Funding Momentum Continues Across the Crypto Landscape
Towns Protocol’s funding success joins a wave of high-profile capital movements within the crypto sector.
Sui-based Momentum DEX recently closed a funding round at a $100 million valuation, backed by OKX Ventures and Coinbase Ventures, after achieving over $3 billion in swap volume.
Meanwhile, Classover Holdings announced a $500 million raise to support a large-scale Solana acquisition strategy, marking a bold treasury allocation into non-Bitcoin crypto by a public firm.
Additionally, stablecoin startup Atticus, supported by Haun Ventures and Palmer Luckey, is aiming for a $2 billion valuation.
Together, these developments highlight a bullish sentiment in decentralized infrastructure, social protocols, and digital asset management strategies.