ConsenSys is raising funding according to a company representative briefed about the plan. This event would reportedly value the New York-based cryptocurrency start-up at US$3 billion.
We selected this cryptocurrency-related report to share with our readers as it demonstrates the latest trends in the cryptocurrency investing scene.
In our view, this news about ConsenSys relating to the increasing number of investors pouring their funds into crypto-assets and cryptocurrency start-ups is important for our readers to learn about in today’s financial markets.
According to the report posted online by the international business publication The Financial Times, ConsenSys develops and invests in cryptocurrency projects built on the Ethereum distributed ledger. The latter is a Bitcoin rival useful in making financial services applications and other automated software programs.
Moreover, ConsenSys is Ethereum co-founder Joseph Lubin’s venture. It has profited from the decentralized finance boom.
One of the applications ConsenSys developed is MetaMask. This well-known gateway to decentralized finance programs has expanded quickly as more users experiment with crypto-assets.
Furthermore, MetaMask has facilitated over US$8.9 billion of trading since October 2020 via a feature permitting users to exchange virtual token pairs, per information on virtual currency analysis website Dune Analytics.
This CoinSys application takes a 0.875-percent charge on every trade, which translates to over US$78 million in revenues during the same period. Last month, MetaMask reached more than 10 million monthly users.
ConsenSys has also projected MetaMask’s annualized revenues potentially surging to US$1 billion within the next year, per a company representative briefed on the figures.
In April this year, ConsenSys declared that it had raised US$65 million from various investors, including UBS, Mastercard, and JPMorgan, in what this start-up referred to as a “formation round.” The financing would mark a significant milestone for the seven-year-old cryptocurrency-oriented firm.
We are pleased for ConsenSys with its forthcoming funding round. We think such an event is a milestone occasion, benefitting investors and the company’s administrators alike.
As we all know, cryptocurrency start-ups have risen these past few years, thanks to investors’ support who pour their funds into the cryptocurrencies.
Additionally, venture capitalists have invested US$20.7 billion in crypto-asset start-ups so far this year, per PitchBook data. This event marks a ballooning surge of over 160 percent from the previous record three years ago.
We think cryptocurrency start-ups like ConsenSys will thrive following its upcoming fundraising event. After all, we know that Bitcoin and other virtual currencies’ soaring trading prices entice new users, investors, and developers into this rapidly growing yet risky industry, facilitating virtual currency start-ups’ expansion.
