Consensys
| Company type | Private |
|---|---|
| Industry | Blockchain technology |
| Founded | 2014 |
| Founder | Joseph Lubin |
| Headquarters | Fort Worth , United States |
| Products | MetaMask, Infura, Meridio, Gnosis Safe |
Number of employees | 1200 (2018) |
Consensys is a privately held blockchain technology firm established by Joseph Lubin and headquartered in Fort Worth.
History
In early 2015, Joseph Lubin launched ConsenSys AG as a software foundry dedicated to creating decentralized software services and applications on the Ethereum blockchain. On October 31, 2018, the company expanded by acquiring Planetary Resources, a firm specializing in asteroid mining. Later that year, in December 2018, ConsenSys underwent a corporate restructuring that resulted in a workforce reduction of thirteen percent from its 1,200 employees. This was followed by a further 14% staff cut in February 2020.
During 2020, ConsenSys AG restructured its operations by spinning off several infrastructure projects into a new entity called Consensys Software Inc., often referred to simply as "Consensys," while adopting the new corporate identity Consensys Mesh. In August of the same year, Consensys purchased Quorum, JPMorgan Chase & Co.'s blockchain platform for banking; financial details of this transaction were not publicly disclosed.
In November 2021, Consensys secured $200 million in funding at a valuation of $3.2 billion from investors such as Animoca Brands, Coinbase Ventures, and HSBC. Subsequently, in March 2022, it raised an additional $450 million through a financing round led by ParaFi Capital with contributions from Microsoft, SoftBank, and Temasek.
By June 2023, the company refreshed its brand image by unveiling a new logo and narrative, simultaneously changing its name format from the camelcase "ConsenSys" to the simplified "Consensys."
Projects
Consensys is responsible for developing and maintaining multiple blockchain-based applications and services.
MetaMask functions as an Ethereum wallet that allows users to store and transfer cryptocurrencies and tokens as well as interact with decentralized applications on the Ethereum network. Originally released as an open-source desktop browser extension under the MIT license, MetaMask transitioned to a proprietary license in 2020. Additionally, it offers a proprietary mobile application.
Infura delivers blockchain node infrastructure services that enable developers to retrieve Ethereum data and submit transactions. Its platform operates as the backend infrastructure for Ethereum-related services including MetaMask and numerous others beyond Consensys’s own projects.
Beyond its main operations, Consensys has initiated or invested in various ventures that have sometimes become independent companies. Examples include Meridio, which facilitates fractional ownership in real estate assets, and Gnosis Safe, providing secure management solutions for digital assets on Ethereum.
ICOs
Civil Media, supported by Consensys and focused on leveraging cryptocurrency to fund journalism, conducted an ICO in October 2018 selling CVL tokens. The campaign raised $1.8 million but did not meet its $8 million soft cap goal.
Consensys was the predominant purchaser in this offering, acquiring 80% of the CVL tokens available.
Controversies
Consensys has encountered several legal disputes, including a High Court case in Ireland challenging a ruling from the Workplace Relations Commission. Further litigation involves allegations related to corporate governance following the 2020 transfer of MetaMask and other assets from its Swiss parent company to its US subsidiary.
On June 28, 2024, the US Securities and Exchange Commission filed charges against Consensys for conducting unregistered securities offerings and operating as an unregistered broker through MetaMask Staking and MetaMask Swaps. Prior to this action, on April 25, 2024, Consensys initiated legal proceedings against the SEC seeking judicial clarification that MetaMask Swaps does not render it a broker-dealer; that MetaMask Staking does not constitute a securities offering; and that Ether (ETH) should not be classified as a security.