MetaMask wallet connects to fiat currency transactions, with total costs of various fees reaching up to 9%.

MetaMask wallet connects to fiat currency transactions, with fees totaling up to 9%.

As one of the most widely used applications in the crypto market, MetaMask’s every move has attracted market attention. Compared to other wallets that constantly improve user experience, the journey of the foxy MetaMask may have just begun.

Author: Zen

The MetaMask wallet, which has 30 million monthly active users, now supports users in directly selling cryptocurrencies for fiat currency to their bank accounts.

On the evening of September 5th, the crypto wallet MetaMask announced the launch of its latest feature “Sell”, which allows users to exchange cryptocurrencies for fiat currencies (such as USD, EUR, GBP) through MetaMask Portfolio and send the funds to their bank accounts. This feature is currently only available in the United States, the United Kingdom, and some parts of Europe. Initially, it only supported ETH on the Ethereum mainnet, and there are plans to expand it to native gas tokens on Layer 2 networks in the short term.

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The “Sell” feature was launched about five months after MetaMask introduced the ability for users to purchase cryptocurrencies with fiat currencies from bank accounts, debit cards, credit cards, and LianGuaiyLianGuail.

According to the official introduction, when users use this feature for the first time, they must select their region. Subsequent uses will skip this step and default to the last selected region. Users then enter the quantity of ETH or other cryptocurrencies they want to sell, choose a quote from multiple service providers, and connect their bank accounts. MetaMask has established partnerships with crypto on-ramp providers such as MoonLianGuaiy, Sardine, and Transak. However, currently only MoonLianGuaiy and Transak provide services for the “Sell” feature. New users may need to complete KYC verification on their websites before using these service providers.

Due to regional policy restrictions, Asian users cannot currently use this feature. We can understand the details of this withdrawal service through the testing conducted by Twitter user @S4mmyEth.

A UK user @S4mmyEth initiated a withdrawal request of 0.05 ETH through the “Sell” service and chose MoonLianGuaiy as the service provider. After the on-chain transaction was processed, the associated fees were transferred to MoonLianGuaiy. In this process, the 0.05 ETH, which was worth about $82.78 at the time, incurred a $0.80 gas fee and a 1% on-chain exchange fee. The entire process from submitting the application to receiving fiat currency took 5 minutes.

After completing all the operations, @S4mmyEth finally received £59.42, while the instant price of 0.05 ETH at the time of withdrawal initiation was about £65. Therefore, a total fee of nearly £6 was required to convert it into fiat currency, with a total fee rate of approximately 9%. This includes an ETH gas fee of £0.65 ($0.80), a 1% exchange transaction fee (£0.65), and a hidden fee of about £4.50, which may have been charged by MoonLianGuaiy.

This also means that from selling tokens on MetaMask to a bank account, there is a total of 9% in various transaction fees, which is higher than expected.

The friendliness of traditional financial institutions towards the cryptocurrency market has decreased significantly since the FTX incident in November last year. After the bankruptcy of cryptocurrency-friendly banks this year, the exchange channels between the cryptocurrency market and fiat currencies have become even more limited. However, MetaMask is making efforts to reconnect this channel. Although users need to pay friction costs when cooperating with other intermediaries, it simplifies the operation process and is more conducive to attracting more users from outside the circle.

In December last year, MetaMask reached a cooperation agreement with LianGuaiyLianGuail, allowing some US users to purchase Ethereum through LianGuaiyLianGuail. Then in May this year, this cooperation was extended to all US users (except Hawaii), making it the first Web3 wallet to achieve such transactions through LianGuaiyLianGuail. In addition to directly purchasing ETH, this integration also supports the transfer of ETH from LianGuaiyLianGuail to MetaMask, which helps more users to self-custody ETH.

In April, MetaMask launched the “Buy” cryptocurrency purchase service for more than 189 countries, supporting more than 90 types of tokens. Users can use this function to purchase more than 75 types of tokens on 8 blockchains in multiple countries. Buy supports a wider range of payment methods, as it accepts debit card and credit card transfers, LianGuaiyLianGuail transfers, bank transfers, instant ACH transfers, and other transfer methods.

In addition to fiat currency channels, perhaps feeling the intense competition in the wallet track, MetaMask has changed its laid-back attitude in the past year and has been continuously updating its products.

For example, it launched stake pledge services, allowing users to directly stake tokens such as ETH to earn rewards. It integrated cross-chain bridge providers, including bridge aggregators and standalone bridge connectors. It is worth mentioning the system “MetaMask Snap” it launched, which can securely extend the functionality of MetaMask, similar to the Apple App Store for encrypted wallets. It allows third-party developers to launch new decentralized applications to extend the functionality of MetaMask and build a permissionless ecosystem.

As one of the most widely used applications in the cryptocurrency market, MetaMask’s every move attracts market attention. Compared to other wallets that constantly focus on product and user experience, the journey of the little fox in dominating the market might have just begun.

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