Cryptocurrency wallets could emerge as a new way of investing and not just a way to store money. blockchain-based assets, says HashEx’s Dmitry Mishunin.
Throughout the development of the cryptocurrency market and decentralized finance, we have seen how unstable these markets can be. Since 2017, we have seen the rise of ICOs, the DeFi mania at its peak in 2020, the NFT mania of 2021, as well as the rise of DAOs, IEOs, and more in recent times. Some of these entities are done and dusted. The roller coaster dynamic has become a distinctive feature of the decentralized financial market.
The most recent NFT trend is morphing and slowing its growth as initial public interest in these assets cools. The metaverse trend and the game-to-win industry are now adopting the nascent NFT technology into their systems. But the cryptocurrency market is still on a tear. This means that investor interest in the market is also high. This, in turn, means that a new trend is likely to emerge.
What will this new trend be? So far, the signs seem to point to crypto wallets and native tokens launched by the wallets. Let’s take a closer look.
Cryptocurrency wallets and their tokens come into the picture
The first rumor about the new forming trend associated with cryptocurrency wallets started with the native token MetaMask. It was first rumored that the token would be launched sometime in 2022. Then these rumors were confirmed by ConsenSys CEO Joseph Lubin who stated that the IDO MetaMask (initial DEX offering) would be held in the second quarter of 2022. He also added that a DAO would be formed that “will not govern MetaMask, but it will fund the creation of new MetaMask elements.”
MetaMask is currently valued at $7 billion after its last round of Series D funding worth $450 million. The company’s valuation has nearly doubled since November 2021. Its closest competitor token, Trust Wallet, is currently valued at around $415 million. It launched on Binance Chain as a BEP-2 token in August 2020 and was later relaunched as a BEP-20 token on Binance Smart Chain in October 2020.
The Trust Wallet team also announced last month that VP of Financial Marketing Eowyn Chen will replace current Trust Wallet CEO and Founder Viktor Radchenko. The fact that Eowyn Chen played a major role in the remarkable growth of Binance Coin (BNB) could be a plausible reason to believe in Trust Wallet’s intentions to boost its TWT token. Along with this, it was announced that Trust Wallet will expand its current staff by 10 times.
Tokens to note
Another news about tokens from cryptocurrency wallets was related to the launch of the LEAP governance token of the Terra Leap wallet. Leap has already raised $3.2 million through the private sale of LEAP, with the two main buyers being venture capital funds CoinFund and Pantera Capital. Smaller investments were made by Arrington Capital, Accel and Terraform Labs.
Also in March 2022, the Exodus cryptocurrency wallet began trading on the SEC-registered Securitize Markets trading platform. In May 2021, Exodus raised $75 million via a mini-IPO, and its shares are now traded on tZero and Securitize Markets. With the launch of Exodus shares on Securitize Markets, they have become available to retail investors in over 40 countries.
Cryptocurrency wallets: conclusion
All the information mentioned above allows us to assume that crypto wallets could arrive on the cryptocurrency scene as a new means of investment and not just as a means of storing blockchain-based assets. This is still speculation, but given the positive market impact on some of MetaMask’s competitors since the announcement of the MetaMask token release, we can hardly consider it a coincidence.
The role of this announcement certainly played a big role in this growth, and such a wave in the crypto market will not go unnoticed. This could very well give the entire wallet industry a boost, making it a new frontrunner in the crypto market for some time to come.
Speaking of possible ways to use wallet tokens, the obvious use case might be DAO. The launch of MetaMask’s DAO mentioned by Joseph Lubin already suggests that this could become common practice in the future. Launching governance tokens can allow wallets to attract more users, get more funds, and increase the value of their tokens. Similarly, they can jump on the metaverse train and offer their platforms as NFT marketplaces with already large target audiences.
About the Author
Dmitry Mishunin is the founder and CEO of a smart contract audit company HashEx. He specializes in cybersecurity and security audits, and product development in Ethereum, Bitcoin, Binance blockchains. HashEx has conducted over 500 audits for projects of varying levels and helped preserve over $5 billion in investor funds.
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Cryptocurrency Wallets Are Likely To Become Market Drivers In 2022
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