After MetaMask completes financing, it will issue Token or the largest airdrop in history, but there is great regulatory uncertainty

According to Decrypt, the parent company of MetaMask, which has 30 million monthly active users, said after completing a huge financing that it will soon launch a decentralized autonomous organization or DAO. “It will not manage MetaMask, but it will provide funding for the creation of new MetaMask.” . CEO Lubin did not provide further details about the DAO or a release date, but did confirm that MetaMask intends to issue the token. At Ethereum Denver last month, the head of MetaMask operations said the token launch would proceed with caution.

The release of DAO is also a pre-step for MetaMask to issue Token to a certain extent. MetaMask and its main users are both located in the United States, and with its huge user base, it will inevitably be subject to extremely strict regulatory scrutiny, and even a temporary suspension like Libra cannot be ruled out. Therefore, it needs to avoid the accusation of securities tokens in the first step and switch to a DAO-like governance Token model. Once the Token is released, the airdrop to 30 million or more users may become the largest airdrop in history.

MetaMask is very sensitive to US regulation. José Rafael Peña, previously identified as a former CoinDesk employee, said that the use of Infura in Metamask banned Venezuelan IPs because they were “unusable in certain regions to comply with the law”, but continued to work after changing nodes. Later, according to Decrypt, the MetaMask blocking incident turned out to be an “oolong”. In order to comply with the new US sanctions plan, Infura is blocking access to all IP addresses in the Crimea and Udong regions, but due to configuration errors Blockade of Venezuela (now lifted). The currently blocked areas also include Iran, North Korea, Cuba and Syria. This also shows that MetaMask has a positive attitude in cooperating with US supervision, and other similar node service providers have not explicitly blocked IP access in the Udong area.

In addition, the parent company ConsenSys was previously sued and specially audited by 35 former employees, alleging that the company transferred to a new entity in 2020 in exchange for a 10% equity investment by traditional financial institutions such as JPMorgan Chase and offset 39 million. U.S. dollar loans, a move that hurts minority shareholders.

On March 15, ConsenSys, the parent company of Metamask Infura and others, announced the completion of $450 million in financing, with a valuation of more than $7 billion, and the accepted funds will be converted into ETH immediately. ParaFi Capital led the investment, with participation from Temasek, SoftBank Vision Fund, Microsoft, Anthos Capital, Sound Ventures and C Ventures. Metamask currently has 30 million monthly active users. It is worth noting that VCs in traditional industries are basically involved in investment. ConsenSys has always been an important support force behind Ethereum, and the outbreak of MetaMask has also benefited from the development of Ethereum and EVM. This is also the reason why it rarely stated that “digital assets and fiat currencies are accepted in this round, and converted to ETH immediately”.

The official also revealed the data of MetaMask Little Fox, the largest application in the crypto world: the wallet now supports more than 30 million monthly active users (MAU), an increase of 42% in just four months. The global user base relies on MetaMask to mint and collect NFTs, join DAOs, and participate in DeFi protocols. The US, Philippines, Brazil, Germany and Nigeria are some of MetaMask’s most active markets. However, in Chinese-sinking areas, TP wallet market competitiveness is relatively high; Phantom with more than 1.2 million users on Solana occupies an absolute lead; Coinbase Wallet is also continuing to make efforts.

Officials emphasized that the funding will also support the rapid expansion of MetaMask, with the redesign scheduled for release later in 2022, as well as the launch of a plug-in extensible system that will allow integration with various blockchain protocols and account security schemes. This means that MetaMask may integrate other non-EVM public chains such as Solana Polkadot in the future.

MetaMask has also started to make some profits through its built-in aggregate trading. Decrypt reports that its on-chain daily revenue on Ethereum is around $85,000 to $220,000. According to previous data, its revenue in 2021 is about 200 million US dollars. It is worth noting that this revenue is still very low compared to exchanges, mining machine manufacturers, etc. This also shows that the most profitable and successful business models in the industry are still centralized exchanges (contracts) and bitcoin mining machine manufacturers. Although MetaMask has no pressure on capital cost after huge financing, it seems that Token Economics is also an inevitable choice, otherwise it will be difficult to go further in the absence of commercial realization models.

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