Consensys

Not to be confused with consensus.
Consensys Software Inc.
Company typeCorporation
IndustryBlockchain software
FoundedOctober 2014; 10 years ago (2014-10)[1]
FoundersJoseph Lubin
Headquarters
Fort Worth
,
United States
Number of employees
500+ (2020)
Websiteconsensys.io

Consensys is a private blockchain software technology company founded by Joseph Lubin and based in Fort Worth.

History

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Joseph Lubin founded ConsenSys AG in early 2015 as a software foundry to develop decentralized software services and applications that operate on the Ethereum blockchain.[2][3] On October 31, 2018, ConsenSys acquired Planetary Resources, an asteroid mining company.[4] In December 2018, ConsenSys announced a restructuring with projected layoffs of thirteen percent of its 1,200 staff,[5][6] and in February 2020 announced the layoffs of a further 14% of staff.[7] In 2020, ConsenSys AG spun out [8]several of its infrastructure projects into a separate company, Consensys Software Inc. (now commonly simply referred to as "Consensys"). ConsenSys AG rebranded as Consensys Mesh the same year. In August 2020, Consensys acquired banking blockchain platform Quorum from JPMorgan Chase & Co. Financial terms of the deal were not disclosed.[9] In November 2021, Consensys raised $200 million at $3.2 billion valuation from Animoca Brands, Coinbase Ventures and HSBC among others.[10] In March 2022, Consensys raised $450 million in a new round led by ParaFi Capital, with Microsoft, SoftBank, and Temasek also joining as new investors in the company.[11] In June 2023, Consensys launched a brand refresh where they introduced a new company narrative, logo, and an updating of the name to remove the camelcase from ConsenSys to Consensys.

Projects

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Consensys is involved in many different projects and services for blockchain uses and applications.

MetaMask is an Ethereum wallet application which allows users to store and transfer cryptocurrencies and tokens, as well as access and interact with decentralized applications built on the Ethereum blockchain. The software was originally MIT-licensed as open source on desktops as a browser extension, but was relicensed in 2020 under a custom proprietary license.[12] It can also be used through a proprietary mobile app.[13]

Infura is a blockchain node infrastructure service that allows apps and developers to get data from, and broadcast transactions to, the Ethereum blockchain. Infura's network is used as a backend for Ethereum services and applications, including MetaMask and many others not associated with Consensys.[14][15]

The company has started or invested in several different projects that are not considered to be core to their business, have been spun out into more independent entities, or are not wholly owned by Consensys.[5][6] Some of these include Meridio, a platform used to create, manage, and trade fractional-share ownership in real estate assets, and Gnosis Safe, a platform for managing digital assets securely on ethereum.[16][17][5][18][19]

ICOs

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Civil Media, a Consensys-backed company that claims to use cryptocurrency to save journalism sold CVL tokens to the public in an ICO in October 2018. Civil was able to raise $1.8 million, less than the $8 million soft cap.[20]

It was later revealed that Consensys was the largest buyer of CVL tokens, buying 80% of the CVL tokens that went on sale.[21]

Controversies

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Consensys has been involved in multiple controversies and lawsuits. These include a High Court challenge in Ireland against the ruling of the Workplace Relations Commission.[16] Separately, the 2020 sale of MetaMask and other assets from its Swiss parent company to its US entity has been litigated over alleged irregularities in corporate governance.[22] On June 28, 2024 the US Securities and Exchange Commission announced that they had charged Consensys with engaging in the unregistered offer and sale of securities through MetaMask Staking, and operating as an unregistered broker through MetaMask Staking and MetaMask Swaps.[23] In an attempt to preempt the SEC's suit, on April 25, 2024 Consensys had sued the SEC and its commissioners in the Northern District of Texas asking the court to declare that MetaMask Swaps does not make Consensys a broker-dealer; MetaMask Staking is not an offering of securities; and that Ether (ETH), the native token of the Ethereum blockchain, is not a security.[24]

References

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  1. ^ "About us". ConsenSys. Archived from the original on 2018-01-16. Retrieved 2018-01-16.
  2. ^ Tapscott, Don; Tapscott, Alex (May 2016). The Blockchain Revolution: How the Technology Behind Bitcoin is Changing Money, Business, and the World. pp. 87–93, 112–114. ISBN 978-0670069972.
  3. ^ Popper, Nathaniel (2016-03-27). "Ethereum, a Virtual Currency, Enables Transactions That Rival Bitcoin's". The New York Times. Retrieved 2016-05-11.
  4. ^ "ConsenSys Acquires Planetary Resources". Planetary Resources. 31 October 2018. Retrieved 31 October 2018.
  5. ^ a b c Kauflin, Jeff. "Cryptopia In Crisis: Joe Lubin's Ethereum Experiment Is A Mess. How Long Will He Prop It Up?". Forbes. Retrieved 2018-12-06.
  6. ^ a b "ConsenSys plans to spin out most of its startups, and it's going to mean layoffs". 20 December 2018.
  7. ^ "Major blockchain developer ConsenSys announces job losses". Reuters. 4 February 2020.
  8. ^ Insights, Ledger (2020-02-05). "ConsenSys restructures, spins off venturing business". Ledger Insights - blockchain for enterprise. Retrieved 2024-10-29.
  9. ^ Irrera, Anna (2020-08-25). "ConsenSys acquires JPMorgan's blockchain platform Quorum". Reuters. Retrieved 2020-09-22.
  10. ^ "Ethereum Infrastructure Company ConsenSys Raises $200 Million at $3.2 Billion Valuation". Forbes.
  11. ^ Browne, Ryan (15 March 2022). "Microsoft dives into Web3 with investment in Ethereum co-founder's start-up ConsenSys". CNBC.
  12. ^ Dan Finlay (August 20, 2020). "Evolving our License for the Next Wave of MetaMask Users". Consensys. Retrieved 2024-08-04.
  13. ^ "MetaMask's Blockchain Mobile App Opens Doors For Next-Level Web". Bloomberg.com. 2020-09-02. Retrieved 2020-12-13.
  14. ^ Stephen, Bijan (2018-12-20). "ConsenSys plans to spin out most of its startups, and it's going to mean layoffs". The Verge. Retrieved 2020-12-13.
  15. ^ Perez, Yessi Bello (2019-10-04). "ConsenSys acquires Infura, the centralizing tech powering Ethereum dapps". Hard Fork | The Next Web. Retrieved 2020-12-13.
  16. ^ a b "ConsenSys challenges WRC finding in redundancy case". RTÉ. 2022-08-12.
  17. ^ "Safe". safe.global. Retrieved 2023-01-02.
  18. ^ Miller, Stuart (25 May 2018). "A Blockchain Building in Bushwick". The New York Times. Retrieved 2018-09-14.
  19. ^ Shieber, Jonathan (2015-10-28). "Microsoft Partners With ConsenSys To Use Ethereum To Provide Blockchain-As-A-Service". TechCrunch. Retrieved 2016-05-11.
  20. ^ "Blockchain media startup Civil is issuing full refunds to all buyers of its cryptocurrency". TechCrunch. 16 October 2018. Retrieved 2019-06-26.
  21. ^ "ConsenSys bought most of the CVL tokens in Civil Media's disappointing ICO — Quartz". qz.com. 17 October 2018. Retrieved 2018-11-18.
  22. ^ Scheckinger, Ben (December 19, 2022). "Legal fight over ownership of Web3 heats up". Politico. Retrieved 2023-01-17.
  23. ^ "SEC Charges Consensys Software for Unregistered Offers and Sales of Securities Through Its MetaMask Staking Service" (Press release). Securities and Exchange Commission. June 28, 2024. Archived from the original on June 29, 2024. Retrieved 2024-08-04.
  24. ^ Saini, Manya (April 26, 2024). "Crypto firm Consensys sues US SEC over Ethereum regulation". Reuters. Retrieved 2024-08-04.
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