Like many other crypto wallet companies, Metamask also needs to make money. Although MetaMask as a wallet does not generate any cash directly. They do have other services connected to the wallet that generate revenue for them.
MetaMask uses a set of methods to generate revenue. But many other wallets use, and have, other methods of making money. You can read more about that in our article “How do Crypto wallets make money?”.
Methods MetaMask uses to make money
At the moment of writing, the MetaMask crypto wallet mainly uses 3 main methods of revenue generation. These methods are the following:
Swap fees
Although MetaMask doesn't operate as an exchange, they do help users to trade cryptocurrencies. They do this by letting users trade through several decentralized exchanges from within their wallets. For each and every trade that their users make, they take a small fee on top of that trade. Which generates a good amount of money for their business.
Since the start of the swapping feature within the wallet, many have swapped tokens at least once in the hope of Metamask airdropping a token to its early users.
Institutional Solution
Besides the free Metamask wallet, which anyone can use for free. They also provide a similar service for institutional clients, which helps them safe keep their crypto and gives them access to qualified custodians. But also helps them to ensure compliance with existing tax laws for some districts.
Merchandise Sales
Although definitely the lowest, most minor income stream for the crypto wallet. MetaMask also has a merchandise store in which they sell their branded items. These products help them advertise their wallet. But also bring in a small stream of revenue for their wallet product.
How profitable is MetaMask?
In 2021 MetaMask has been reported to make over $200 million. For a crypto wallet, that is a significant amount of money. Most of this revenue of course comes from their swapping fee. Because almost the whole crypto community that uses an EVM wallet uses Metamask and has tried its swap feature.
Because MetaMask’s revenue is heavily dependent on the flow of the crypto market, its revenue generation will be hard to predict. However, the more the crypto market grows, and the more users are on the blockchain, the more Metamask is likely to earn.
Especially with the entire move from crypto exchanges to non-custodial wallets. The future revenue for MetaMask and its parent company looks bright.
Who owns MetaMask?
The MetaMask crypto wallet was created by ConsenSys in 2016. ConsenSys which started in 2014 owns a set of products including Metamask.
ConsenSys was valued at $3.2 billion after a capital raise of $200 million in 2022. Investors in ConsenSys during this time were organizations like Coinbase, Animacobrands, HSBC, and others. For now, MetaMask has been a great revenue source for ConsenSys making it unlikely that they will sell off the crypto wallet anytime soon. Instead, it would be more likely that MetaMask grows together with the crypto market and keeps on generating revenue for ConsenSys.
Is it safe to leave coins on MetaMask?
Leaving your coins on MetaMask is only as safe as the device you have the wallet on.
Because MetaMask is a noncustodial wallet, you, and only you, are in control of the tokens on it. This means that if you would have your coins stolen or lost, MetaMask can not help you. So as security for your coins and wallets lies fully in your responsibility, you will need to add good security. You can do this by making a strong backup, having a virus scanner and VPN, and putting a pin on your wallet.
MetaMask however is a software wallet. Meaning that it is on a device that can connect to the internet. Software wallets are practical but are always riskier than its counterpart, a hardware wallet, which keeps the private keys offline. If you have larger amounts of crypto and feel like you need to secure it well. A hardware wallet would be more recommendable.
If you want to learn more about MetaMask and what we thought about it? Then check out our MetaMask review!
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