As the parent company of MetaMask, ConsenSys ‘ every move has received widespread public attention. In the context of the gradual maturity of the digital asset market, the number of active users of MetaMask has reached 10 million, and it has been revealed to the outside world that the token issuance and airdrop plan are already under evaluation, so this news of ConsenSys has also caused a lot of Investors began to move around.
On October 11th, according to people familiar with the matter, ConsenSys was conducting a financing with a valuation of 3 billion US dollars. This news instantly caused widespread heated discussion among community members. The public is speculating whether it is preparing for the issuance of MetaMask, and the airdrop is finally on the agenda.
However, some investors are not optimistic about the financing of ConsenSys itself because of its own shortcomings. ConsenSys had previously spent US$100 million in a year, but its revenue was only derived from the independent consulting business of US$21 million. Criticized. This also made the US$200 million financing plan that ConsenSys wanted to seek at the time eventually fell through.
With the gradual survival of the fittest in the market, ConsenSys also began to lay off and rectify internally in response to market demand. The company’s operating mechanism has also begun to undergo a huge transformation. On April 13, 2021, ConsenSys completed a $65 million financing. Well-known institutions such as JPMorgan Chase, Mastercard and UBS have participated in the investment. Filecoin Protocol Lab, Maker Fund Institutions such as the Conference, Alameda Research, and Fenbushi have also invested in ConsenSys.
After a lapse of June, ConsenSys once again reported the news that it was financing and the amount was huge, which inevitably further deepened the public’s attention to ConsenSys.
Ethereum network incubator to build value interoperability between blockchain and government
The initial ConsenSys was just a venture capital studio, aiming to incubate the company’s main projects around, and then use it for external investment. After that, ConsenSys began to focus on building the Ethereum network, establishing a large number of corporate relationships and available soft power, and becoming a bridge between blockchain and government value exchange.
Over the years, ConsenSys has successfully assisted over 50 incubation Ethernet Square ecological growth projects, covering development tools, infrastructure, core components, platforms, applications and services, and so on, including MetaMask and such infrastructure projects Infura .
As early as 2018, ConsenSys’ business scope has been expanded to include colleges, capital, incubators and other departments. In addition, the number of employees has increased from the initial 80 to 1,000 within two years, but this also makes it difficult for employees to correspond to the positions of different departments of the company, so the company often reorganizes employees. This also became one of the reasons why ConsenSys spent more than revenue later.
ConsenSys maintains friendly contacts with many government organizations. These contacts can be divided into two categories, industry contacts and soft power. ConsenSys provides services to many industry participants through its enterprise-centric solutions department, and is also a leading member of the Enterprise Ethereum Alliance and other encryption industry committees.
Since its establishment, ConsenSys has been playing a leading role in the European Economic Area, and has also established a number of joint ventures with leading financial services and technology companies, including Microsoft’s joint ventures. In addition, ConsenSys also cooperates with many government agencies, including the Inter-American Development Bank, European Commission, South African Reserve Bank and so on. These all play an important role in the supervision between the blockchain industry and the government.
Reorganization of core business, cutting 14% of employees
On February 5, 2020, ConsenSys announced a major reorganization of its core business model, enabling the company to effectively split its business into two, one focusing on the development of software products, the other focusing on investment in start-ups, and said There will also be 14% layoffs. As early as 2018, ConsenSys has laid off 13% of its employees.
The reason for the split of ConsenSys’ business was mainly because it was difficult to raise funds for a company that participated in investment and software development at the same time. At the time, ConsenSys was seeking US$200 million in financing, but it was difficult to implement this financing plan because of its financial report income of only US$21 million in the previous year.
After ConsenSys announced the reorganization of its core business, Consensys also entered the $3.8 trillion municipal bond market and disclosed its acquisition of the broker-dealer Heritage Financial Systems, which also made Consensys equipped with both consulting and broker-dealer businesses. ability. On August 25, 2020, ConsenSys announced the acquisition of Quorum, a blockchain platform owned by JPMorgan Chase. As part of the transaction, JPMorgan Chase also made a strategic investment in ConsenSys.
Reform and development, ConsenSys launches a new round of financing
After the internal changes and reorganization of ConsenSys, ConsenSys also began to focus on the development of Ethereum 2.0 and other infrastructure. In the latest ConsenSys report, MetaMask has over 10 million monthly active users. ConsenSys predicts that MetaMask’s annualized revenue in 2022 is expected to increase to $1 billion.
In addition, ConsenSys has also established contacts with many countries and participated in the issuance plan of its CBDC. Ethereum has also ushered in new developments. The formal verification of the beacon chain specification in the Dafny language has been completed. In addition, the Ethereum 2.0 API specification has been updated to v2.0.0 to prepare for the Altair upgrade. In the current digital asset context, the founder of ConsenSys stated that the Ethereum ecosystem has long surpassed the Bitcoin ecosystem in terms of developer activity, daily transaction volume, transaction value, and token volume. This also means that ConsenSys, which has been stationed at the “frontline of building the Ethereum ecosystem”, has great development prospects in the future.
And its latest reported financing plan with a valuation of 3 billion US dollars may not mean that the issuance of MetaMask is imminent, and it may be a major investment in the entire Ethereum. And from the overall performance of the organization after its reorganization and reform, it can be seen that the market layout and investment strategy of ConsenSys have changed significantly compared with the previous ones. ConsenSys also continues to play a pivotal role in the friendly value transfer between the blockchain and the government. effect.