MetaMask May Be Getting Closer to Issuing Its Native Coin, Co-founder Dan Finlay Has Said

The most popular Ethereum wallet, MetaMask, which boasts more than 30 million monthly active users, may be getting closer to issuing its native coin

Popular cryptocurrency wallet MetaMask, which has over 30 million monthly active users, may be getting closer to launching its own native token, co-founder Dan Finlay said.

Finlay was addressing rumors of the token, known as MASK, which have been swirling for years. He told The Block’s "Crypto Beat" program that it is still under consideration, but he is optimistic it will happen eventually.

"We are going to do this. But no time frame yet," Finlay said.

Asked if MetaMask will create its own token, Finlay said, "Maybe. We will be very open about it. So if it does happen, you will see it announced on the MetaMask blog and in the wallet itself. There will be a clear connection itself."

This is part of an effort to protect users from fraudulent schemes that could cash in on rumors of the token launch.

Rumors of a MetaMask token began in 2021, when ConsenSys, the parent company of MetaMask, experimented with community-driven governance models based on tokens.

ConsenSys CEO Joseph Lubin also fueled speculation in a December 2021 tweet, where he asked "Wen $MASK?" and teased the possibility of the token in an interview with Bloomberg in January 2022.

Later that year, Lubin said the aim was to encourage “gradual decentralization” in ConsenSys projects, with a decentralized autonomous organization (DAO) to distribute funds, not rule.

A new administration in the U.S. could open opportunities for such a move, presenting a chance for safer token launches, Finlay added.

"With a more permissive administration there is scope to do that in a safer way. But there are still going to be big roadblocks with the U.S. securities laws, because they are going to continue to be a barrier to a lot of tokens being launched in a compliant manner," Finlay said.

He added that any rumors of the token should be disregarded, and that the company would never use unofficial channels, such as text messages or email, to announce the token.

"We will never use channels where we don't have complete control over the messaging. So, for example, we would never announce the token launch in a text message, because we don't collect users' mobile numbers. You will only see legitimate updates about the token on the MetaMask website or inside the wallet itself," Finlay said.

His comments come as hot wallet competition heats up, with the likes of Rainbow and Rabby gaining traction.

Finlay acknowledged the competitive landscape and said the MetaMask team, which has about 500 employees, has been working hard over the past year to improve the user experience and keep ahead.

"We are in a very permissionless space, so there is a lot of competition. But we are very focused on providing the best possible experience for our users. We are also constantly innovating and adding new features."

MetaMask is the most popular Ethereum wallet and a key part of the DeFi ecosystem. It is used by millions of people around the world to access decentralized applications and manage their cryptocurrency.

The wallet is known for its user-friendliness and security, and it has been praised by cryptocurrency enthusiasts for its role in making DeFi more accessible to the mainstream.

A potential token would further deepen users' engagement with MetaMask's ecosystem, allowing for community-driven features and/or incentives to be integrated.

Talks of a token go as far back as a 2021 developer call, where engineer Erik Marks suggested the community ownership method over a token. Later, Lubin described the DAO as a funding mechanism, not a governance body with safeguards from opportunistic investors.

Finlay noted that any token would not be a "quick profit scheme" according to MetaMask's long-term decentralization.

The regulatory environment remains primary. Finlay remarked that while a more relaxed U.S. administration would bode better for innovation, it wouldn't negate the existing securities laws. He cited former Chair of the SEC Gary Gensler's stance on how many such launches appear as securities offerings and should be meticulously handled.

MetaMask's concerns highlight the importance of trust in the crypto space. As they navigate a competitive landscape and evolving regulations, they concentrate on official communication channels to safeguard users from scams.