Is MetaMask Planning to Launch a Native Token?

Leading cryptocurrency wallet MetaMask is considering creating its very own native token. The company shared its plans during a recent community call in which they discussed how an internal evaluation of the idea is currently underway, although it declined to comment on a possible timeline for the release of its native token.

One of the biggest concerns holding back the team of developers from implementing the idea is the possibility of a ‘pump-and-dump’ by users, which could create an artificial hype of the token, inflate its price and send it crashing via massive sell-offs. At a time when there is increasing regulatory scrutiny on cryptocurrencies and digital assets, such an incident would cause significant harm to MetaMask’s reputation.

In addition, the developers need a compelling use case for such a native token as far as its users as well as its own financial strategy is concerned before they could consider launching it. According to a senior software engineer on the team, Erik Marks, an ICO of MetaMask’s native token would help raise capital as its highly engaged community will indulge in ‘pumping’ up the value of the token.

MetaMask has been rising in popularity over the past several months, powered by the DeFi and NFT boom in the market. It supports a native token swapping service like some popular DEXs and the creation of its very own token could further boost its popularity as it would enable users to cut down transaction fees, driving up its use and transaction volume.