From a niche Solana wallet to a multi-chain platform with millions of users, Phantom’s rise reflects crypto’s shift toward usability and scale. This article explores its origins, rapid growth, funding, security controversies, and how it became one of the most widely used wallets today.
Phantom Wallet is a non-custodial cryptocurrency wallet that allows users to store, send, stake, and interact with digital assets directly from a browser extension or mobile app. It was originally built for the Solana blockchain, where it quickly became the default wallet for some users participating in NFTs, DeFi, and token transfers. Over time, Phantom expanded to support Ethereum and Polygon, positioning itself as a broader multi-chain wallet. At its core, Phantom is designed to simplify crypto—making complex blockchain interactions feel closer to using a modern web app.
Phantom Wallet was launched in 2021, during a period when the Solana ecosystem was growing rapidly but lacked user-friendly tools [source]. In 2020–2021, Solana’s wallet infrastructure was still in an early stage. Tools like Sollet and early versions of Solflare enabled core functionality but were largely developer-oriented, often requiring manual setup and offering minimal UX guidance [source]. For non-technical users, this made interacting with Solana significantly more difficult than on more mature ecosystems like Ethereum.
Phantom entered the market with a clear thesis: crypto wallets should prioritize user experience first, not just technical capability. This positioning turned out to be well-timed. As new users flooded into Solana—especially through NFTs—Phantom became their default entry point.
Phantom was founded by Brandon Millman, Chris Kalani, and Francesco Agosti. The founding team brought experience from both crypto infrastructure and product design, including work at companies like 0x [source]. Their focus was not just on building a functional wallet, but on building one that felt intuitive. This emphasis on design and usability became one of Phantom’s strongest competitive advantages.
Phantom’s growth closely tracked the rise of Solana in 2021–2022. Several factors drove rapid adoption:
The result: Phantom became the dominant wallet in the Solana ecosystem within a relatively short period. [source]
Initially, Phantom focused on core wallet functionality like storing, sending, and receiving assets. But it quickly expanded into a broader product:
This evolution turned Phantom from a basic wallet into a hub for interacting with the blockchain.
One of the most important moments in Phantom’s history was its move beyond Solana. Phantom added support for Ethereum and Polygon [source]. This marked a shift from being a Solana-specific wallet to a multi-chain platform. Strategically, this reduced reliance on a single ecosystem—a move that became pivotal for the company's survival and growth following the network instability and ecosystem shocks of late 2022 [source]. However, it also introduced complexity—supporting multiple chains while maintaining a clean user experience is a difficult balance.
Phantom’s growth was supported by significant venture funding.
Key highlights include:
July 2021: $9 million seed round led by by Andreesen Horowitz (A16Z). [source]
Jan 2022: $109 million Series B round led by Paradigm [source], with participation from prominent crypto-focused investors. This funding allowed Phantom to scale its team, expand to new blockchains, and invest in security and infrastructure.
Jan 2025: $150 million Series C round co-led by Sequoia and Paradigm. [source]
As a non-custodial wallet, Phantom places responsibility for asset security largely in the hands of users. Key areas of focus include transaction simulation and warnings, clearer permission prompts, and phishing protection improvements.
But, not even self-custody wallets avoid all controversy when it comes to wallet security. Here are two serious controversies related to Phantom:
In 2025, Phantom was sued after a ~$500,000 theft, with plaintiffs alleging the wallet stored private keys in browser memory, allowing malware to extract them and drain funds without bypassing security controls.
Phantom denied the claims and argued that, as a non-custodial wallet, users remain responsible for securing their devices and keys. [source]
A security researcher publicly accused Phantom of failing to respond promptly to a reported vulnerability, claiming delays of weeks and warning that user funds could be at risk.
Phantom acknowledged the report but said the issue did not endanger funds. The company offered limited technical detail, which drew further criticism from the researcher and community. [source]
Today, Phantom is one of the most widely used crypto wallets globally, consistently ranking in the top five hot wallets by active users. [source]
The company has reported Monthly Active Users (MAU) numbers for the following years:
Phantom Wallet started as a niche tool for Solana users but evolved into a major player in the broader crypto wallet landscape. Its trajectory reflects a larger trend in crypto: early tools prioritize functionality, but the long-term leaders are those that prioritize usability and expand across ecosystems.
