Latest news with #Consensys
Yahoo
6 days ago
- Business
- Yahoo
The company that owns MetaMask just acquired wallet infrastructure Web3Auth
Consensys, an Ethereum-focused crypto infrastructure company, announced on Monday that it has closed a deal to acquire Web3Auth, a security management company. The acquisition is particularly important for Consensys' most popular product, a crypto wallet called Metamask. Web3Auth is part of a larger effort to make the wallet more accessible to non-crypto native users, and allow them access without the onerous and often perilous process of remembering their passwords. 'This integration enhances MetaMask's capabilities significantly, embodying our belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features,' Joseph Lubin, Founder & CEO of Consensys, said in a statement. Dan Finlay, co-founder of MetaMask, added that the acquisition is 'really about smoothing that adoption ramp and providing a more familiar backup experience to people.' This latest acquisition comes 10 months after Consensys acquired Wallet Guard, a browser extension that alerts users to malicious transactions on MetaMask. With more than 100 million users, MetaMask has become one of the leading self-custody wallets since it launched in 2016. Self-custody refers to a type of crypto wallet where investors maintain total control over their holdings, rather than handing over their crypto to an exchange like Coinbase. The benefits of this include avoiding third party risks and restrictions, like limits on the size of transactions. But in order to provide these upsides, self-custody wallet users are required to maintain their own private key—an alphanumeric code that unlocks their wallet. And unlike traditional bank accounts, there is no 'forgot your password' option. That has led to incidents of people who theoretically have access to vast wealth, but have forgotten their codes. That may be contributing to why there are 1.8 million Bitcoins—about 9% of the token's total supply in circulation—held in wallets that have been totally inactive for a decade or more, according to a 2024 survey conducted by Fortune in collaboration with crypto data analytics firm Chainalysis. Finlay says these passwords create a barrier to entry for new crypto users who don't trust themselves to hold onto their private key, but also don't want to engage with large crypto exchanges—especially after the FTX collapse. 'Don't share this with anyone, but also don't lose it is a very difficult needle to thread,' he said. Consensys and Metamask are trying to solve for this with the Web3Auth acquisition; that company, founded in 2019 and formerly known as Torus, has developed software that allows users to create and log into their self-custody wallet through their social media accounts like Google, X, or Discord, rather than remembering their passwords. Web3Auth also offers services that increase security, like multi-factor authentication. Most of the Web3Auth team will be joining Consensys, according to a spokesperson for Consensys. Consensys declined to disclose the size of the deal or whether it was made in all cash, stock or both. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Consensys Acquires Web3Auth to Reinvent MetaMask Onboarding
Consensys, the Ethereum infrastructure company behind the popular MetaMask wallet, said it has acquired Web3Auth, a provider of wallet infrastructure, in a move aimed at improving usability and developer accessibility across its platforms. Financial terms of the deal were not disclosed. The acquisition is designed to modernize MetaMask's onboarding experience and tackle one of the most persistent challenges facing self-custodial crypto wallets: seed phrase management. According to Consensys, internal data indicates that 35% of MetaMask users fail to back up their seed phrases — a key vulnerability that can result in permanent loss of funds. Web3Auth's technology, already integrated across some 8,200 decentralized applications, offers login and recovery tools that mirror Web2-style user flows. With this integration, MetaMask users will have the option to access wallets without relying solely on seed phrases, aligning with a broader industry push toward "account abstraction" — the idea that crypto wallets should offer the same ease of use and safety nets found in traditional apps. 'This integration enhances MetaMask's capabilities significantly, embodying our belief that the best Web3 wallets will seamlessly integrate infrastructure that supports a wide range of empowering features,' said Joseph Lubin, chief executive of Consensys and a co-founder of Ethereum. 'These include frictionless onboarding, customizable interfaces, extensive ecosystem connectivity reminiscent of a mycelium network, configurable security for varying needs, and maximal protections in high-security contexts.' The acquisition also targets developers building within the MetaMask ecosystem. By incorporating Web3Auth's embedded software development kits (SDKs), Consensys said it aims to simplify the developer experience and offer more flexible tools for integrating blockchain into consumer-facing applications. 'The future of using web3 is going to be full of embedded wallets that enable blockchain integrations to be nearly invisible, and minimize user interactions to the meaningful ones,' said Dan Finlay, the co-founder of MetaMask, in the press release. 'Together, we think we can help build the best of both worlds: a decentralized web that is invisible as much as it can be, but can show up when a user is ready to tap into its power.' Read more: Ethereum Upgrade Could Make It Harder to Lose All Your CryptoError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Ethereum Co-Founder Credits Michael Saylor for Crypto Treasury Firm Nudge
(Bloomberg) -- Long-time crypto advocate and Ethereum co-founder Joe Lubin says he was swayed into launching a firm to invest in the network's native currency about six-months ago by the best-known advocate of stockpiling digital tokens. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Where the Wild Children's Museums Are Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania The Economic Benefits of Paying Workers to Move NYC Congestion Toll Brings In $216 Million in First Four Months 'I was at a dinner with Michael Saylor, I did a little bit of research, I started talking to my colleagues about how cool it could be,' Lubin, the founder and chief executive officer of Ethereum software infrastructure provider Consensys, said in an interview. 'Nobody in our company had done a deep dive on it. We saw, hey we don't see anything overly dangerous in the strategy.' The eye-popping returns the software firm formally known as MicroStrategy has registered since Saylor decided in 2020 to turn the company into a leveraged Bitcoin proxy have captivated both Wall Street and individual investors. The outsized premium shares of the now-named Strategy command over the value of its Bitcoin holdings has spurred a surge in so-called crypto treasury companies seeking to emulate Saylor's success. Last week, the sports betting and gaming technology firm SharpLink Gaming Inc. said it would become a Ether treasury company, with Lubin serving as chairman of the board. SharpLink has closed a $425 million private placement to purchase Ether for its treasury. The fund raise was led by New York-based Consensys. Share of SharpLink surged about 400% following the May 27 the announcement, and ended last week up around 1,000%. The stock had tumbled more than 50% annually in the last three years. Lubin expects to raise additional capital to fund purchases of Ether, which is the second-largest cryptocurrency by market value after Bitcoin. 'There will be ways for us to take in more capital for us to buy more Ether,' Lubin said, citing Saylor's strategy of issuing shares and convertible bonds. 'We'll do that in a prudent way, we'll not take excessive risk.' The key is not to become over-leveraged, Lubin said. 'We anticipate that our actions and similar actions will drive a huge amount of demand for Ether,' said Lubin, who said other firms are looking at Ether treasury strategies as well. While Saylor has been promoting Bitcoin as digital gold, the marketing message behind Ethereum — crypto's commercial highway, with thousands of gaming and lending apps — has been more garbled. Some investors shifted to only investing in Bitcoin, which has gained about 11% so far this year. Ether is down about 26%, even after a rally following its latest software upgrade. Lubin believes Ether deserves better. 'Essentially there's a paradigm shift on, to a more decentralized global economy,' Lubin said. 'It shouldn't be hard to believe that Ether will be a big part of that paradigm shift.' Lubin downplayed concern that the crypto treasury strategy is just the latest ploy to make a quick buck in crypto, similar to the pump-and-dump schemes that have plagued the sector since its early days more than a decade ago. 'I've never been looking to exit anything in the Ethereum ecosystem, we are builders, not exploiters,' Lubin said. 'We expect there will be years, possibly decades of growth in our ecosystem. We expect Ether growing enormously valuable.' Treasury companies holding Ether will be able to stake it — basically, use the coins to secure the Ethereum network and earn yield. 'We anticipate that there will be a number of vehicles like this that are well intentioned,' Lubin said. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Will Small Business Owners Knock Down Trump's Mighty Tariffs? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
6 days ago
- Business
- Bloomberg
Ethereum Co-Founder Credits Michael Saylor for Crypto Treasury Firm Nudge
Long-time crypto advocate and Ethereum co-founder Joe Lubin says he was swayed into launching a firm to invest in the network's native currency about six-months ago by the best-known advocate of stockpiling digital tokens. 'I was at a dinner with Michael Saylor, I did a little bit of research, I started talking to my colleagues about how cool it could be,' Lubin, the founder and chief executive officer of Ethereum software infrastructure provider Consensys, said in an interview. 'Nobody in our company had done a deep dive on it. We saw, hey we don't see anything overly dangerous in the strategy.'
Forbes
28-05-2025
- Business
- Forbes
What's Behind The 1,000% Rise For SBET Stock?
CANADA - 2025/05/01: In this photo illustration, the SharpLink Gaming logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) SharpLink Gaming (NASDAQ:SBET), an online performance marketing company, has seen its stock surge a whopping 1,067% in a week. This move came after the company's recent announcement of a $425 million private placement to adopt Ethereum as its primary treasury reserve asset. Separately, see What Sparked UNH Stock Crash? This move represents an interesting corporate transformation for a struggling online marketing company into what could become the premier publicly-traded Ethereum proxy, backed by the cryptocurrency industry's most influential players, including Consensys Software (founded by Ethereum co-founder Joseph Lubin) and major cryptocurrency venture capital firms such as ParaFi, Electric Capital, Pantera, and Galaxy Digital. More significantly, Joseph Lubin's appointment as Chairman establishes a direct connection to Ethereum's founding team, suggesting this extends beyond passive investment into potential strategic ecosystem integration. In fact, strong leadership is just one of the many factors we look for while constructing the Trefis High Quality portfolio, which has outperformed the S&P 500 and achieved returns greater than 91% since inception. But What About The Company's Fundamentals? SharpLink's current financial performance is a tale of operational struggles, as its core business performance presents a stark contrast to its ambitious crypto strategy. The company's revenues have shrunk 31% from $5.0 million to $3.4 million over the last 12 months, significantly underperforming the S&P 500's 5.5% growth rate. This decline accelerated in recent quarters, with quarterly revenues dropping 24.0% to $0.742 million in the most recent quarter from $0.976 million a year ago. Furthermore, SharpLink's profit margins are considerably worse than most companies across multiple metrics. Operating Income over the last four quarters was -$4.0 million, representing a very poor Operating Margin of -116.8% compared to 13.2% for the S&P 500. Operating Cash Flow (OCF) of -$4.0 million yields a very poor OCF Margin of -117% versus 14.9% for the S&P 500. Net Income of -$3.2 million indicates a very poor Net Income Margin of -94.1% compared to 11.6% for the S&P 500. These metrics demonstrate that the company's core marketing operations are generating substantial losses across all profitability measures. Now, the $425 million raise creates a new investment thesis for SBET as a publicly-traded Ethereum vehicle, similar to how MicroStrategy functions as a Bitcoin proxy. However, SharpLink's approach appears more strategically integrated, with direct Ethereum ecosystem involvement through Lubin's leadership and comprehensive crypto VC backing. Moreover, the company's focus on sports betting and iGaming industries could benefit from blockchain integration, particularly with Ethereum ecosystem support. That said, investors must weigh the significant operational challenges reflected in the company's poor profitability metrics against the transformative potential of the Ethereum strategy. Also, Ethereum price fluctuations could create significant balance sheet volatility for the company. In fact, there always remains a meaningful risk when investing in a crypto-related stock. Consider the Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
