Crypto payments infrastructure firm MoonPay introduces new swapping feature
MoonPay has unveiled a new feature in its app that allows users to swap one cryptocurrency for another. The company announced the feature on X (formerly Twitter), stating that users can now unlock the value of their existing assets by swapping over 1,500 trading pairs. This expansion of functionality builds upon MoonPay’s retail-facing crypto app, which was launched earlier this year and initially focused on purchasing cryptocurrencies and managing multiple wallets.
MoonPay has optimized the swapping feature to enhance efficiency. Instead of relying on complex smart contracts, the company executes swaps through two sends: one for receiving the deposit and another for sending the quoted amount. This approach reduces gas costs and streamlines the process. MoonPay, with its customer base of 16 million users worldwide, is expanding beyond its core payments infrastructure model. The company recently launched a venture capital unit focused on investing in early-stage web3 and fintech startups.
MoonPay’s rise and legal challenges
In late 2021, MoonPay raised $555 million in a Series A funding round led by Tiger Global Management and Coatue, resulting in a valuation of $3.4 billion. However, the company has faced legal challenges. In December 2022, MoonPay was hit with a class action lawsuit alleging its involvement in an NFT value inflation conspiracy with Bored Ape NFTs creator Yuga Labs and celebrities. In June 2023, it was claimed that MoonPay gifted valuable Bored Apes NFTs to celebrities as a promotional strategy. MoonPay denied the allegations but provided no further details.
Expansion in the crypto payments industry
MoonPay’s new swapping feature comes at a time when payment giants are expanding their crypto offerings. PayPal announced the upcoming launch of its PYUSD stablecoin, and Coinbase received regulatory approval to offer perpetual futures trading services to retail customers outside the United States.
Hot Take: MoonPay’s Swapping Feature Enhances User Experience and Expands Crypto Offerings
MoonPay’s introduction of a swapping feature in its app is a significant development that enhances user experience and expands the company’s crypto offerings. By allowing users to swap between cryptocurrencies, MoonPay unlocks the value of their existing assets and provides more flexibility in managing their digital portfolios. The optimized swapping process reduces costs and streamlines transactions, making it more efficient for users. With its venture capital unit and expansion beyond payments infrastructure, MoonPay demonstrates its commitment to innovation and growth in the crypto industry. However, the company must address legal challenges to maintain trust and credibility among its users and investors.
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