MetaMask is indeed hugely popular. In particular, back in mid-November 2021, the developers of the project said that the number of active users of the wallet exceeded the mark of 21 million people during the month. As the team noted at the time, this way they “surpassed Bitcoin’s maximum supply”, which is indeed 21 million coins.

Cryptocurrency buying

MetaMask still hasn’t launched its own token, although many popular projects have managed to do so. As such, members of the cryptocurrency community are actively waiting for the release. However, the prospects of the latter are still unclear.

What will MetaMask token be like?

According to Decrypt’s sources, now the number of active MetaMask users exceeds 20 million people. However, the platform’s management is not going to implement any plans to release its own token yet.

The situation was commented at the ETHDenver conference by MetaMask’s head of operations under the pseudonym Jacobc.eth. Here’s his rejoinder, in which the developer explained what’s going on.

We strongly believe in progressive decentralisation and that it will happen for a long time. However, it will only make sense if it is not used only as a prerequisite for making money.

Consequently, project representatives oppose the idea of creating a token solely to enrich users. This means that the approach to the initiative here is completely different.

Average number of active MetaMask users per month from 2020 to 2021

The project’s representative noted that the token would be an “important aspect” of the company’s “belonging to the community”. In doing so, he tried not to give false hopes to investors regarding the cryptocurrency’s release. The developer continues.

Token distribution is not something we will ignore or risk our company given the potential sanctions of financial regulators.

Which means project analysts believe that the prospect of token distribution to users could be cause for increased regulatory scrutiny.

Many cryptocurrency projects, by necessity, are initially centralised companies, where the core team maintains the protocol until it “gains momentum”. When enough people use the product, the team may allow users to participate in the development of the project by distributing management tokens. These tokens are used to vote on protocol changes and allocation decisions.

MetaMask

The decentralised exchange Uniswap, in particular, conducted one of the earliest token giveaways from Web 3 projects. In September 2020, users of the decentralised exchange received 400 UNI each if they had used the platform at least once before then. At the time, UNI was trading around $3 on exchanges. As early as May 2021, the token hit an all-time high of nearly $45. This means that everyone who ever traded on Uniswap at the right time received the equivalent of $18,000 “for free”.

With that in mind, it’s not hard to see why investors would be eager to buy a MetaMask token. But so far, the project has no clear plans to release it, much less give it away. On top of that, there is still a need to define clear criteria for who would be able to get tokens in a retrotrade, if the token distribution model is similar to that of Uniswap. And this will clearly not be easy, as the wallet has more than enough users.


We think that the release of the MetaMask platform token would be a logical step in the development of the project. However, given the current stance of the developers, the situation remains unclear. In addition, even in the case of cryptocurrency release it is unlikely it will be distributed to a large number of the project's users.


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