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Within 24 hours of going live, Chingari's crypto token raised $40 million.

Chingari, a video-focused social media platform, stated in a statement that its crypto token $GARI raised $40 million in the first 24 hours of its live sale on Republic's platform.

Chingari aims to use the funds to improve its technology and develop compelling pieces in order to reach a broader creator base with unique products, according to the company.

Tech4Billion Media, which operates the short video-sharing platform Chingari, had raised $19 million (about Rs 140 crore) from 30 venture funds and other investors.

A token round was used to raise the funds. In a token round, investors invest in a firm by purchasing the project's tokens, which in this case are $GARI.

According to reports, the company has scheduled November 2 as the date for its first token sale. Salman Khan, the film star and the internet start-brand up's ambassador, introduced $GARI at a public event earlier this month, claiming to be the first social network in India to issue cryptocurrency tokens.

The $GARI token is based on the Solana blockchain network, which is a new cryptocurrency that is commonly compared to Ethereum.

On the app, the company already has a system called Chingari Coins that allows users and producers to earn money for completing specified tasks, such as uploading unique audio. Cash can be exchanged for these Chingari Coins. It's unclear whether $GARI will be used to replace these coins or if the new blockchain-based currency would make Chinagri Coins fungible.

The concept of incorporating a virtual money into social media platforms isn't particularly novel. Bigo Live and TikTok, both Chinese platforms, had systems comparable to the Chingari Coin, however neither of them employed an actual cryptocurrency. Coins like Chingari Coin, on the other hand, exist within a platform and typically have no trading value, whereas coins like $GARI are frequently exchanged on crypto exchanges. Sports teams and clubs may also issue such coins.

Chingari, which was founded in November 2018 by Sumit Ghosh, Deepak Salvi, Aditya Kothari, and Biswatma Nayak, allows users to download and publish short movies as well as purchase for products within the app.