diff --git a/src/ui/component/channelThumbnail/gerbil.png b/src/ui/component/channelThumbnail/gerbil.png
new file mode 100644
index 000000000..c19e658d2
Binary files /dev/null and b/src/ui/component/channelThumbnail/gerbil.png differ
diff --git a/src/ui/component/channelThumbnail/view.jsx b/src/ui/component/channelThumbnail/view.jsx
index 054f1021e..a22c24613 100644
--- a/src/ui/component/channelThumbnail/view.jsx
+++ b/src/ui/component/channelThumbnail/view.jsx
@@ -1,15 +1,44 @@
 // @flow
 import React from 'react';
+import { parseURI } from 'lbry-redux';
+import classnames from 'classnames';
+import Gerbil from './gerbil.png';
 
 type Props = {
   thumbnail: ?string,
+  uri: string,
 };
 
 function ChannelThumbnail(props: Props) {
-  const { thumbnail } = props;
+  const { thumbnail, uri } = props;
+
+  function getColorClass() {
+    // Generate a random color class based on the first letter of the channel name
+    const { channelName } = parseURI(uri);
+    const initializer = channelName.charCodeAt(0) - 65; // will be between 0 and 57
+
+    let thumbnailColorClass = `channel-thumbnail__default--`;
+
+    switch (true) {
+      case initializer < 15:
+        return (thumbnailColorClass += '1');
+      case initializer < 30:
+        return (thumbnailColorClass += '2');
+      case initializer < 45:
+        return (thumbnailColorClass += '3');
+      default:
+        return (thumbnailColorClass += '4');
+    }
+  }
+
   return (
-    <div className="channel__thumbnail">
-      {thumbnail && <img className="channel__thumbnail--custom" src={thumbnail} />}
+    <div
+      className={classnames('channel-thumbnail', {
+        [getColorClass()]: !thumbnail,
+      })}
+    >
+      {!thumbnail && <img className="channel-thumbnail__default" src={Gerbil} />}
+      {thumbnail && <img className="channel-thumbnail__custom" src={thumbnail} />}
     </div>
   );
 }
diff --git a/src/ui/scss/component/_channel.scss b/src/ui/scss/component/_channel.scss
index 3552b21c1..20b57902a 100644
--- a/src/ui/scss/component/_channel.scss
+++ b/src/ui/scss/component/_channel.scss
@@ -14,7 +14,7 @@ $metadata-z-index: 1;
   align-self: flex-start;
   position: absolute;
   object-fit: cover;
-  filter: brightness(40%);
+  filter: brightness(60%);
 }
 
 .channel__cover,
@@ -23,27 +23,48 @@ $metadata-z-index: 1;
   width: 100%;
 }
 
-.channel__thumbnail {
+.channel-thumbnail {
   position: absolute;
+  display: flex;
   left: var(--spacing-main-padding);
   height: var(--channel-thumbnail-size);
   width: var(--channel-thumbnail-size);
-  background-color: $lbry-gray-3;
-  background-image: linear-gradient(to right, $lbry-white, $lbry-gray-3 80%);
   background-size: cover;
   box-shadow: 0px 8px 40px -3px $lbry-black;
 }
 
-.channel__thumbnail--custom {
+.channel-thumbnail__custom {
   width: 100%;
   object-fit: cover;
 }
 
-.channel__thumbnail,
-.channel__thumbnail--custom {
+.channel-thumbnail__default {
+  width: 80%;
+  height: 80%;
+  margin-left: auto;
+  margin-right: auto;
+  align-self: flex-end;
+  margin-bottom: -1px;
+}
+
+.channel-thumbnail,
+.channel-thumbnail__custom {
   border-radius: var(--card-radius);
 }
 
+.channel-thumbnail__default--1 {
+  background-color: $lbry-indigo-3;
+}
+.channel-thumbnail__default--2 {
+  background-color: $lbry-orange-2;
+}
+.channel-thumbnail__default--3 {
+  background-color: $lbry-blue-3;
+}
+.channel-thumbnail__default--4 {
+  background-color: $lbry-red-1;
+}
+
 .channel__primary-info {
   // Ensure the profile pic/title sit ontop of the default cover background
   z-index: $metadata-z-index;
@@ -63,9 +84,5 @@ $metadata-z-index: 1;
   font-size: 1.2rem;
   user-select: all;
   margin-top: -0.25rem;
+  color: rgba($lbry-white, 0.75);
 }
-
-// .channel__description {
-//   font-size: 1.3rem;
-//   margin: var(--spacing-vertical-large) 0;
-// }