In a recent report, Ethereum blockchain tools and consultancy firm ConsenSys is said to be in discussions about expanding its platform by raising funds valued at $3 billion. This comes months after it raised $19 million from several blockchain firms and global corporations such as JP Morgan, Mastercard, UBS, and several other blockchain firms.
Over the last few months, there has been fierce competition in the blockchain space, and several firms have been raising funds to upgrade their platforms and position them as key players in the ongoing crypto revolution. ConsenSys’s fundraising ambitions look absolutely normal following the moves made by other firms such as Bitcoin development house Blockstream, which raised $210 million at a $3.2 billion valuation.
The Brooklyn-based firm has been reinventing its operation, and the plans to raise $3 billion mirrors the plans and strategies it has put in place. Also, it tallies with the fast-paced growth being witnessed on the Ethereum blockchain over the last few months, and non-fungible tokens continue to take the crypto world by storm, and more numbers continue to adopt it.
ConsenSys had Tough Times
The team at ConsenSys conducted a substantial restructure in February 2020, dividing its software and investment branches and reducing its workforce by 14%. ConsenSys was restructured into two companies: a venture capital business and a cryptocurrency product development such as the MetaMask wallet; Codefi for digital assets, payments, and staking. According to reports close to the situation, the newest boost is for cryptocurrency product development.
ConsenSys first concentrated solely on the cryptocurrency industry, developing tools in-house and backing multiple projects. However, as crypto winter set in in 2018, it faced an unclear future because it was entirely reliant on creator Joe Lubin’s money as the first Ethereum investor. He laid off employees and shifted his focus to enterprise clients, such as huge banks, the world’s leading agribusinesses, and fashion giants like LVMH and others.
Word on the street had it that ConsenSys was seeking $200 million in fundraising in 2019, but rumors suggested it was pursuing a $1 billion valuation which was considered overboard. As a result, the aforementioned reduction took place and restructuring. Like many other businesses around the world, the covid-19 pandemic was another huge setback for the firm, and more staff had to be let off so the company could be on track.
The Big Break
ConsenSys finally had a big break and saw its fortunes reverse for the better in the middle of 2020, with a contract with JP Morgan in August highlighting the turnaround. The famous US bank handed over control of its Quorum enterprise blockchain platform to ConsenSys and invested in the company.
ConsenSys has since had a hand in most of the boom experienced in the crypto space, such as the Defi explosion and the NFT craze going on. Also, it has witnessed a massive revival in its platform as thousands of daily active users are recorded. Following the April fundraising, MetaMask, the ConsenSys’s Ethereum wallet, surpassed 5 million active users. According to ConsenSys, MetaMask usage had quadrupled in six months. Reports showed that despite a decline since April 2021, fresh address creation on the Ethereum network, which includes providers outside of MetaMask, continues to rise. With the newly announced fundraising plans, one can only expect growth for the ConsenSys community.
