Insights4.vc: Is ConsenSys ready to go public?

Author: insights4.vc Translator: Shan Ouba, Jinse Finance

ConsenSys was founded in October 2014 by Ethereum co-founder Joseph Lubin. Lubin initially positioned the company as a "startup studio," aiming to incubate dozens of Ethereum-related startups and projects. Between 2015 and 2018, ConsenSys expanded rapidly, at its peak establishing offices in New York, San Francisco, and other locations, with approximately 1,200 employees, and investing in and incubating numerous "fork" projects in areas such as wallets and decentralized applications. However, the cryptocurrency bear market at the end of 2018 forced the company to significantly shrink: laying off approximately 13% of its staff in December 2018, and another 14% in early 2020.

Strategic Focus Shift After 2020: In August 2020, Lubin spearheaded a major restructuring, splitting the company into two main business segments. Core products (MetaMask, Infura, Codefi fintech suite, etc.) were integrated into a new U.S. entity—ConsenSys Software Inc.; the original Swiss entity was renamed ConsenSys Mesh, focusing on venture capital and incubation. This move aimed to streamline operations and attract external capital, transforming ConsenSys from a loosely structured startup studio into a traditional software company focused on its core star products. Notably, following this restructuring, 27 early employees filed a lawsuit, claiming that the transfer of assets to the new entity diluted their committed equity, highlighting governance conflicts during the transformation process. Following the split, ConsenSys secured its first external financing. In November 2021, the company raised $200 million at a valuation of $3.2 billion, with investors including Animoca Brands, Coinbase Ventures, and HSBC. Just months later, in March 2022, the company raised another $450 million in a Series D funding round led by ParaFi Capital, raising its valuation to $7 billion. This funding coincided with the 2021 bull market for decentralized finance (DeFi) and non-fungible tokens (NFTs), leading to a surge in ConsenSys product usage. However, as the market subsequently cooled, the company implemented cost-cutting measures again: laying off approximately 20% of its workforce at the end of 2022, and another 11% at the beginning of 2023 to control expenses. Key Acquisitions and Divestitures: Throughout its development, ConsenSys has improved its product portfolio through several strategic acquisitions. In 2020, the company acquired Quorum, an enterprise-grade Ethereum fork project from J.P. Morgan, strengthening its permissioned blockchain service capabilities. It also solidified its developer tool ecosystem by acquiring the popular smart contract development framework Truffle and integrating the Infura team, which had been incubated internally since 2016. In early 2022, ConsenSys acquired the Ethereum wallet interface MyCrypto and merged it with MetaMask to improve security and platform compatibility. Recently, the company acquired Web3Auth, a key management SDK provider, to optimize MetaMask's user registration process and security, while continuing to invest in complementary startups (such as DeFi financial tool provider SharpLink). Regarding asset divestitures, during the strategic adjustment period from 2019 to 2020, the company significantly divested or shut down non-core "branch" projects, some of which were incorporated into ConsenSys Mesh, while others were allowed to develop independently. By 2023, ConsenSys had completely transformed its positioning from a "massive incubator" to a "product-oriented company focused on core Web3 infrastructure."

Employee Size, Leadership, and Business Layout: As of the end of 2025, ConsenSys had approximately 600-700 employees worldwide, with a core office in the United States (officially headquartered in Fort Worth, Texas), and significant business operations in New York, London, and other locations. Lubin remained CEO and the largest shareholder. In August 2024, the company appointed former Disney and Improbable executive Dan Odell as CFO, highlighting its IPO intentions. The leadership team also includes MetaMask co-founders Dan Finlay and Aaron Davis, as well as product leaders from Infura and Linea; most members are seasoned professionals in the Ethereum ecosystem. ConsenSys's business covers consumer-facing products and enterprise consulting services. It participates in high-end projects such as the Central Bank Digital Currency (CBDC) pilot program using Quorum technology, while adhering to a "developer-first" philosophy. This dual nature of "balancing decentralized technology and enterprise cooperation" is a significant characteristic of the company's development. Product Matrix and Revenue Sources 1. MetaMask (Wallet Platform) Positioning and User Scale: MetaMask is the world's most widely used self-custodied cryptocurrency wallet, supporting both browser extensions and mobile applications. As an entry point to Ethereum and Web3, it allows users to store assets and seamlessly connect to decentralized applications. At its peak, MetaMask had over 30 million monthly active users (MAU), an explosive growth from 10 million in mid-2021. In 2025, MetaMask had approximately 143 million users globally, with about 30 million monthly active users, holding over 80% market share in the Web3 wallet market and almost becoming synonymous with "accessing DeFi." As the default wallet for numerous Ethereum dApps, its distribution advantage has built a powerful network effect. Profit Model: Unlike most purely open-source wallets, MetaMask generates substantial revenue through built-in services, primarily from "MetaMask Swaps"—an in-wallet token exchange aggregation tool that charges a 0.875% service fee on transactions. During the 2021 bull market, this feature was highly profitable: exchange fee revenue grew by approximately 2300% throughout the year, soaring from about $1.8 million in January 2021 to $44 million in December alone. In 2022, transaction fees from MetaMask contributed the vast majority of ConsenSys' total revenue of $252 million. Other monetization features include: "MetaMask Staking," launched in 2023, allowing users to stake ETH through service providers like Lido and Rocket Pool, with the platform likely earning referral fees; integrating fiat currency deposit channels, potentially generating a small revenue share from partners; and a "MetaMask Institutional" version for institutional clients, supporting compliance and custody integration, or adopting a SaaS licensing model. Furthermore, ConsenSys has revealed plans to launch a MetaMask token and a new reward mechanism, indicating a potential future strategy of using token economics to increase user activity and thus impact the monetization model.

Security and Privacy Performance: Given MetaMask's popularity, its security track record is crucial. The wallet's self-custodial design means users hold their own keys, which largely protects it from direct hacking attacks; most asset losses stem from user-side phishing attacks. ConsenSys has integrated Blockaid security features (enabled by default from 2024), alerting users to malicious transactions and phishing attempts—hundreds of thousands of users have enabled this feature during the testing phase, preventing tens of thousands of malicious transactions. The wallet's codebase was once completely open source, but in 2020, to protect its business model, it switched to a stricter licensing agreement. This decision sparked differing opinions regarding "security transparency." On the privacy front, in late 2022, ConsenSys disclosed that the default Infura connection recorded users' IP addresses and wallet addresses to comply with regulations, raising user concerns and regulatory scrutiny, but without resulting in specific penalties. Overall, MetaMask has a solid security reputation and continues to conduct phishing prevention education; however, its large user base makes it a primary target for scammers, thus continued security investment is crucial. Market Competition: MetaMask's established position faces competition from both emerging wallets and established exchanges. Ethereum and Web3 wallets such as Rainbow, Rabby, Zerion, and Phantom are vying for market share by optimizing UX or supporting multi-chain functionality; Coinbase Wallet leverages the Coinbase brand to attract retail users. Currently, despite overall market growth, MetaMask maintains its market share. However, user loyalty could be shaken if competitors launch products that are "significantly more secure or simpler" (such as wallets using smart contract accounts or those without mnemonic phrases). In the mobile arena, MetaMask also faces competition from rivals like Trust Wallet; in the institutional wallet market, MetaMask Institutional needs to contend with custody-centric solutions like Fireblocks and Copper. In summary, MetaMask's dominance is not insurmountable: its massive installation base and integration with almost all dApps form a "moat," but to maintain growth and profitability, it needs to continuously optimize usability and security, and address app store policy risks (such as potential impacts from Apple or Google restricting cryptocurrency wallet applications). **Revenue Importance and Data Transparency:** MetaMask is likely ConsenSys's largest single source of revenue. Historically, transaction fees have accounted for the vast majority of MetaMask's total revenue. Although the company has not publicly disclosed detailed data, external estimates suggest that in early 2023, MetaMask's transaction revenue accounted for the majority of the company's $252 million annualized revenue (ARR). This revenue is highly sensitive to market trading volume: In 2022, cryptocurrency trading activity declined, leading to a significant drop in MetaMask's transaction volume and fee revenue. Wallet downloads in the first nine months of 2023 decreased by approximately 32% year-over-year. The effectiveness of new revenue streams such as staking and token incentives remains unproven, and user data transparency is also problematic—aside from the occasionally disclosed MAU, detailed data such as daily active users, retention rate, and revenue per user are not publicly available. Investors may need to indirectly assess MetaMask's performance through observable on-chain transaction volumes and industry benchmarks. Overall, MetaMask is ConsenSys's "core asset," but given the regulatory scrutiny of its paid services, it has also become a focal point of risk. 2. Infura (Infrastructure / API Service) Service Content and Importance: Infura is a cloud-based API platform that allows developers and businesses to interact with Ethereum and other blockchains without running their own nodes. In fact, it is the "technical backbone" of countless dApps, providing reliable blockchain data reading and transaction broadcasting services. Not only does MetaMask connect to Infura by default, but well-known platforms such as Uniswap and OpenSea also manage their outsourced nodes through it. Infura's reliability was highlighted during the outage in November 2020: this interruption temporarily paralyzed Ethereum services, and some exchanges even suspended withdrawals, confirming its crucial role in the ecosystem. As of 2022, the Infura platform had over 430,000 developers as users, and its interface processed over $1 trillion in annualized on-chain transactions. Essentially, Infura is often likened to "AWS of the Web3 world," providing scalable subscription-based blockchain infrastructure in a "plug-and-play" model. **Profit Model:** Infura employs a "freemium" SaaS model: developers can call a certain number of APIs for free; exceeding this limit or requiring commercial-grade reliability incurs a monthly fee. Public pricing shows a mid-range plan at approximately $50 per 200,000 requests per month, while enterprise customers can negotiate customized pricing for higher throughput and dedicated support. **Analysts estimate Infura's revenue using historical data:** For example, during the Ethereum boom of 2017, if Infura processed an average of 13 billion requests per day, at a combined rate of $45 per 200,000 requests, its annual revenue would be approximately $34 million. In 2022, Ethereum usage increased by approximately 83% compared to 2017, and Infura's annual revenue was projected to reach $60-65 million, becoming its second-largest revenue source after MetaMask. Furthermore, Infura's enterprise contracts (including SLAs and high-reliability zones) are likely to contribute stable recurring revenue. ConsenSys has revealed plans to decentralize the Infura architecture by collaborating with other cloud service providers and crypto companies to build a "decentralized infrastructure network," but the revenue model will still be based on usage, potentially introducing a node provider market. Currently, there is limited publicly available data on Infura's profitability and profit margins, but given the nature of its software subscription model, its profit margin is likely high after deducting cloud hosting costs. Centralization Controversy: Infura's dominant position has also made it a focal point of the "Ethereum decentralization debate." Critics point out that over 80% of Ethereum applications rely on Infura, which itself runs on traditional cloud servers (primarily AWS), posing a "single point of failure" and a potential bottleneck—Infura has previously imposed service restrictions in certain regions to comply with sanctions. ConsenSys acknowledges this issue and continues to push for service decentralization. In late 2023, Infura announced an early access program for its "Infrastructure Provider Consortium Network," with companies like Microsoft and Tencent joining, aiming to allow multiple independent operators to run Infura nodes and prevent a single company or cloud service provider from controlling the service. However, as of 2025, Infura remained primarily centralized, which critics argue could weaken Ethereum's resilience or subject Infura to regulatory requirements for "reviewing specific protocols." The upcoming IPO may bring the question of "how ConsenSys balances Infura's commercial success with community expectations of decentralization" into focus—a delicate balancing act where full decentralization could introduce new competitors or weaken company control. Market Competition: Infura faces fierce competition in the blockchain infrastructure space. Its most direct competitor is Alchemy—a venture-backed API provider valued at over $10 billion during the 2021 bull market, attracting significant funding and key clients with its "more developer-friendly experience" and "multi-chain support." Other competitors include QuickNode, Blockdaemon, Ankr, Moralis, and cloud giants like Amazon Web Services (AWS) and Cloudflare Ethereum Gateway. Furthermore, many Ethereum projects choose to self-host nodes or use smaller providers to enhance control. Infura's differentiating advantages lie in its "convenience" and "first-mover advantage"—developers understand that "Infura can support business expansion as it needs to operate stably." However, with the development of Web3, Infura needs to simultaneously contend with competition from "well-funded centralized services" and "emerging decentralized solutions (such as Pocket Network, which incentivizes independent node operators to provide services)." Price competition is also a significant factor; some competitors may vie for market share through low prices or customized solutions for specific chains. Currently, Infura remains the default infrastructure for Ethereum dApps, but after its IPO, investors will focus on its long-term competitiveness—especially if developers prioritize decentralization. Notably, MetaMask (ConsenSys' core application) connects to Infura by default, which constitutes a certain competitive barrier. ConsenSys may emphasize Infura's progress in areas such as "reliability improvements," "multi-chain and Layer 2 (L2) network support expansion," and "servicing its own Linea network" to solidify its advantage. Revenue and Data Transparency: Based on an estimated $60 million in revenue in 2022, Infura likely contributes 20%-30% of ConsenSys's total revenue. Compared to MetaMask's transaction fees, its revenue is more stable and closer to a subscription model, but it is still correlated with overall blockchain activity—Infura's revenue increases with dApp usage and on-chain transaction volume, and vice versa. Regarding data transparency, customer concentration is a key unknown: a few large clients (such as large NFT marketplaces or gaming projects) may account for a significant portion of usage. Investors will focus on the revenue contribution percentage from top clients and the likelihood of core clients churning (e.g., large exchanges or platforms deciding to run their own nodes). Furthermore, service availability commitments (e.g., uptime of 99.9%) and fault tolerance clauses will also be key areas of scrutiny—Infura's service track record is generally good but not perfect. Overall, Infura offers a highly predictable revenue stream with profit margins approaching those of cloud services, potentially commanding a higher premium in ConsenSys's sum-of-the-parts valuation approach. While SaaS and infrastructure companies typically enjoy high revenue multiple valuations, Infura's valuation may be adjusted due to the risks inherent in the crypto industry. 3. Linea (Layer 2 Network) Overview and Architecture: Linea is an Ethereum Layer 2 scaling solution launched by ConsenSys, based on Zero-Knowledge Ethereum Virtual Machine (zkEVM) Rollup technology—an EVM-compatible zero-knowledge Rollup. Announced in 2023, the project launched its mainnet alpha test version in mid-2023. It batch-processes off-chain transactions using zero-knowledge proofs and submits validity proofs to the Ethereum mainnet (L1), achieving higher throughput and lower transaction fees while inheriting Ethereum's security. Linea is designed to be "fully EVM equivalent," allowing developers to deploy existing Ethereum smart contracts to Linea without significant code modifications. During the testnet phase, Linea processed tens of millions of transactions; by the time the mainnet launched, over 100 dApps and partners had already built an ecosystem with it. **Ordering Mechanism:** Initially, Linea transactions are processed by a centralized orderer operated by ConsenSys. This is common in new Rollup projects, ensuring rapid confirmation and guaranteeing network reliability in the early stages. However, in the short term, users need to trust ConsenSys to handle transaction ordering and censorship resistance. ConsenSys has released a decentralized roadmap, planning to eventually introduce multiple orderers and community governance (possibly through the Linea Association and token issuance). As the network matures, permissionless ordering is expected to be implemented by 2025. **Cross-Chain Bridges and Security:** Linea has an official cross-chain bridge to the Ethereum mainnet, supporting asset transfers between L1 and L2. Under the Rollup architecture, user assets at L2 are ultimately protected by the Ethereum mainnet—if Linea's proof is valid and cannot be forged, Ethereum will enforce the withdrawal. However, in the early stages of a network, systems typically retain some administrator privileges or upgradeability. For example, ConsenSys briefly paused block generation to verify the system; such operations are common safeguards for on-chain security. Since its launch, Linea has not reported any major security incidents, but like all new Layer 2 networks, its complex zero-knowledge circuits (zk circuits) and fraud-proof mechanisms still require vigilance against vulnerabilities. ConsenSys' strategy is to "align Linea with the Ethereum philosophy," with the most significant measure being the payment of 20% of Linea's net transaction fees in ETH and its burning on L1—a move intended to respond to criticism that "Layer 2 networks are taking away Ethereum's transaction fee revenue," aligning with the economic model following Ethereum EIP 1559 and strengthening support for the value of the Ethereum mainnet.

Token Issuance and Incentives: In September 2025, ConsenSys announced the launch of the long-awaited LINEA token and its initial allocation plan. OTC trading showed a fully diluted valuation of approximately $2.7 billion, with the price stabilizing at around $0.027 after opening (the initial opening price was higher).

The token issuance (TGE) includes three key allocations: 10% is airdropped to early Linea users and developers; 75% is allocated to the ecosystem fund for the network's long-term development; and the remaining 15% is presumably allocated to the team, investors, and the treasury, indicating that ConsenSys largely promotes community shareholding, with a relatively low percentage held by internal personnel.

Possible use cases for the LINEA token include: staking for future sorter roles, upgrading governance voting, and fee rebates.

Prior to the token issuance, ConsenSys launched the "Ignition Liquidity Mining Program" from September to the end of October 2025, distributing 1 billion LINEA tokens (worth approximately $27 million at OTC prices) to users providing liquidity to designated Linea DeFi protocols. This program drove a surge in Linea usage, with total value locked (TVL) soaring from approximately $120 million in mid-2025 to a record high of $1.17 billion by the end of September. As of the end of October, even after the incentive program ended, TVL remained in the $1.1-1.2 billion range, indicating that its DeFi ecosystem had reached a certain scale (although some growth relied on short-term incentives). Revenue and Strategic Value: Linea currently generates negligible direct revenue. L2 transaction fees are designed to be very low, with the majority used to cover Ethereum data call costs and ETH burning. If ConsenSys retains a portion of the LINEA tokens, it might eventually generate value for ConsenSys itself, but given that 85% of the proceeds are used for ecosystem building and airdrops, this suggests that ConsenSys doesn't see Linea as a short-term profit center. Instead, Linea's value lies in its strategic significance. It positions ConsenSys in the scaling space, allowing it to attract users who may have migrated to other L2 platforms. It also hedges against platform risk. If Ethereum activity shifts to L2 platforms, ConsenSys now has a native foothold. MetaMask and Infura already serve other L2 platforms, but having Linea allows for deeper integration and the potential for future fee revenue, such as sequencer rewards. How ConsenSys will calculate the economics of Linea remains unclear. For example, if the Linea Association is established and the token is largely governed by it, ConsenSys may not integrate Linea metrics in the same way.

Enterprise and Other Products, Quorum, Codefi, etc.

In addition to its flagship consumer and developer tools, ConsenSys also generates revenue through enterprise software and services. Its core product is ConsenSys Quorum, a private blockchain platform initially developed in partnership with JPMorgan Chase. Quorum is essentially an Ethereum-based ledger designed to meet enterprise needs, featuring access control, high throughput, and zero-knowledge privacy protection. Since acquiring Quorum from JPMorgan Chase in 2020, ConsenSys is now pushing it into the financial institutions and enterprise markets for applications such as interbank networks, asset tokenization, and central bank digital currency (CBDC) pilots. According to ConsenSys, Quorum is already used in approximately ten CBDC projects globally and has around 100 enterprise clients, including JPMorgan Chase for its JPM Coin network.

Related Comparisons

ConsenSys covers multiple areas, so it's necessary to use a sum-of-parts approach.

• Coinbase:Among cryptocurrency-native companies, Coinbase is the closest publicly known competitor to MetaMask. Coinbase is primarily an exchange, with revenue derived from transaction fees, but it also provides a benchmark for investors on how to assess a large cryptocurrency user base and trading revenue. Its price-to-sales ratio has fluctuated roughly between 3 and 10 times across various market cycles. Coinbase went public in 2021 via a direct listing, with a market capitalization approaching $80 billion at the time, which fell below $10 billion during the bear market before rebounding in 2025 as trading volume increased. Coinbase's profit margins and growth can serve as a reference for valuing MetaMask's transaction fees. It's important to note that Coinbase is subject to more direct regulation and has a more mature profit model, while MetaMask's profit model is still in its early stages, but with significant profit potential. Circle: The issuer of USDC. Circle reportedly went public in 2025. Its business model is unique, with revenue primarily derived from reserves and interest payments. As a high-profile crypto infrastructure company, Circle's products are regulatory compliant, and its price-to-earnings ratio could reach 5 to 8 times, depending on growth and interest rate dynamics. This sets a benchmark for infrastructure companies in the cryptocurrency space. Blockchain Infrastructure and Fintech: Developer platforms and cloud infrastructure are valuable references for components like Infura. Companies like Twilio, which are API-driven, or networks like Cloudflare, which rely on usage, typically have P/E ratios in the high single digits to low double digits when experiencing rapid growth. Broader fintech companies like Robinhood (HOOD) signal cryptocurrency access for retail users, with P/E ratios typically only a few times, reflecting slower growth and improving profitability. Other cryptocurrency companies, such as Galaxy Digital, Bakkt, and cryptocurrency miners, are less similar to Bullish and generally have lower P/E ratios due to factors like earnings cyclicality, balance sheet complexity, or SPAC equity dilution. If Bullish does go public in 2025, its valuation and trading performance will provide further insight, although Bullish's business focuses more on exchanges than infrastructure or wallets.

Strategic Narrative and Moat

ConsenSys' strategic narrative, the story it will tell investors, hinges on becoming an indispensable toolkit for Web3. It positions itself as an integrated platform with a strong competitive advantage, rather than a collection of decentralized crypto projects.

MetaMask Distribution Flywheel

MetaMask's massive user base is at the heart of ConsenSys' moat. This distributed advantage has a self-reinforcing effect: because MetaMask is the default wallet for millions of users, developers optimize for it when launching new decentralized applications, which in turn makes MetaMask crucial for users. This provides ConsenSys with unparalleled insight and access to the Web3 user base. In fact, ConsenSys is able to identify emerging trends early and build related features or derivatives faster than its competitors.

MetaMask also acts as a conduit for other products. When users interact through MetaMask, they indirectly access Infura's default endpoint, driving traffic to Infura and creating cross-selling opportunities, such as driving advanced developers to upgrade to paid tiers or institutional users to use MMI. Network effects protect MetaMask, and cross-chain support further strengthens this moat. ConsenSys will emphasize that MetaMask is a platform, not just a wallet. Integrations such as exchange, staking, and other advanced features indicate that MetaMask is evolving into a full-service portal for Web3. If MetaMask becomes an app store or browser for decentralized applications (dApps), ConsenSys can profit from this central position by charging fees or establishing partnerships. The argument is that MetaMask's widespread adoption is difficult to replicate, giving ConsenSys a lasting competitive advantage similar to early internet browsers, making it an indispensable entry point for other applications.

Infrastructure L2 Integration

ConsenSys's advantage lies in its simultaneous control of the interface layer (wallet) and infrastructure layer (nodes and Layer 2 networks). This vertical integration provides flexibility and distribution advantages. Linea can be accessed with a single click within MetaMask, a feature not available from other Layer 2 network providers. Infura can be optimized to work seamlessly with Linea, providing developers with a seamless technology stack. Controlling both the client and infrastructure helps reduce latency and failure rates from wallet to node, something single-point solutions struggle to achieve. Furthermore, MetaMask's broad neutrality is a key factor in its success. ConsenSys may be able to maintain open support for multiple networks while offering subtle user experience advantages for its own network where appropriate. This is similar to Apple's approach of allowing other music apps to access the platform while integrating more deeply into its own app—a gentle guidance rather than a forced lock-in.

Innovation and Developer Moat

ConsenSys will emphasize its role as an innovator and standard setter in the Ethereum space.

Conclusion

Details of the ConsenSys IPO are being finalized: major banks have joined, the target listing date is 2026, the company plans to list in the US, and the valuation is expected to reach billions of dollars (referencing companies like Coinbase). A successful listing depends on ConsenSys demonstrating a clear financial position (especially in terms of revenue composition) and convincing investors that it possesses a solid competitive advantage and a prospect of continued growth, rather than being subject to the cyclical fluctuations of the cryptocurrency market.

The next key focus will be on the formal disclosure of listing documents and the resolution of regulatory issues that may affect the IPO. In summary, ConsenSys positions itself as a platform providing comprehensive support for Web3 construction, similar to having a browser (MetaMask), a cloud layer (Infura), and a scalable web (Linea). Its competitive advantage stems from its deep ecosystem embedding, high switching costs for users and developers, strong network effects, and a delicate balance between maintaining neutrality and achieving profitability. As the Web3 user base continues to expand, ConsenSys is expected to capture value at multiple levels while consolidating the open ecosystem that underpins its long-term success.