ConsenSys, the Ethereum software incubator behind tools such as Infura and Truffle, is buying a mainstay of the Web 3 ecosystem.
The company announced today it has acquired MyCrypto, a wallet interface for securely managing Ethereum addresses. The startup and its 12 employees will pair with ConsenSys' MetaMask, the most popular Ethereum wallet. (ConsenSys Mesh funds an editorially independent Decrypt.)
Though nothing changes for users of either product in the immediate future, MyCrypto founder and CEO Taylor Monahan will form a triumvirate with MetaMask co-founders Dan Finlay and Aaron Davis as they look to gradually merge their offerings and brands.
"It just really became obvious that we share so many values," Monahan told Decrypt about the reason for the deal, adding that their products could fit together to "have a bigger impact."
Finlay sees a number of areas where MetaMask and MyCrypto can improve one another's offering. Whereas MyCrypto is focused on its web browsers and desktop applications, MetaMask's strengths lie in its mobile app and browser extension, as well as its integrations with decentralized applications across Ethereum, where the wallet has a near-ubiquitous presence. He told Decrypt the acquisition will help in "creating a cohesive user experience" across those tools.
Growing pains
MetaMask's fast growth—it increased its monthly users from 1 million in October 2020 to 21 million in November 2021—has come with some growing pains, as the wallet has been criticized for not being intuitive or fast enough. Monahan indicated it's a tough chore to keep pace with an industry whose use cases are changing to include not just investing and DeFi, but also NFTs and DAOs
"When people are griping about MetaMask, it's because the product they're using doesn't perfectly serve them," she explained to Decrypt. "And the reason that it's not perfectly serving them is that this ecosystem is so diverse—from the super power user who understands the underlying [Ethereum Virtual Machine] layer stuff all the way to the brand new dude who just wants to get this JPEG thing on OpenSea right now."
By combining forces, she thinks the two teams will be able to craft a better user experience for all types while still maintaining the levels of security both projects pride themselves on. Indeed, the two teams have already linked up in this regard, with MyCrypto's CryptoScamDB helping to power MetaMask's phishing detection service.
ConsenSys declined to share financial details of the deal, but it's in the midst of a play to dominate the Ethereum software market. In November, it raised $200 million in Series B funding with a valuation of $3.2 billion.
It will need that money to help Ethereum compete with other blockchains, which have taken to offering DeFi applications—that let people lend, borrow or trade crypto without going through an intermediary—on speedier, less-congested networks. Just this week, Solana-based crypto wallet Phantom raised $109 million in Series B funding, bringing its valuation to $1.2 billion.