MetaMask

How to stake Polygon (MATIC)

Staking MATIC helps one to generate passive income. Find how to stake MATIC via MetaMask, Binance, Coinbase Wallet and Trust Wallet.

The Polygon network, formerly the Matic network, is an Ethereum-scaling protocol that reduces cost and embeds high security. In a short span, Polygon has gained a high level of traction.

A string of solutions on a single network sets Polygon apart from other Ethereum scaling projects. It empowers developers to zero in on a scaling solution that works best with their applications. Polygon Labs has been consistently working to develop scaling solutions based on plasma sidechains, a blockchain bridge, different types of zero-knowledge proofs and Optimistic Rollups.

Processing bundles of transactions on the Polygon proof-of-stake (PoS) blockchain drastically reduces the burden on the Ethereum main chain, making transactions faster. The throughput rate in the Ethereum base layer is roughly 14 transactions per second, while Polygon has the potential to handle exponentially higher transactions per second. 

Anyone wanting to participate in the network by updating transactional data on the system must stake Polygon (MATIC). In the Polygon network, a validator’s job is to ensure the network’s security and add transactions to blocks. Validators stake, allowing users to delegate tokens in exchange for rewards net of any commissions charged by validators. 

Staking of MATIC, explained

Anyone looking to stake MATIC has to delegate tokens to a validator. Stakers can earn rewards against the staked funds. For now, there are no minimum staking requirements though validators can decide the minimum acceptable limit for staking. Validators might charge fees or commissions for these services. Staked MATIC tokens have an unlocking period of 80 checkpoints, approximately three to four days. Stakers wanting to exit just need to send an unbound request.

It helps to factor in validators’ credibility before delegating funds to any of them. One can hop to the Polygon staking dashboard to get information about validators, viewing metrics such as active validators, their uptime, commission and the amount required to stake. These metrics are valuable tools to help select reliable validator(s):

  • Uptime refers to the number of blocks signed in a specific time period. A validator’s uptime should be close to 100%. Otherwise, it indicates the validator is unreliable, as reflected in their public performance metrics.
  • Commission rate is the percentage of one’s rewards the validator receives for their services.
  • The stake amount indicates the total number of tokens delegated to a validator.

How to stake MATIC on MetaMask

MetaMask is a decentralized, noncustodial cryptocurrency wallet that interacts with the Ethereum blockchain. The wallet is accessible as a mobile app and browser extension on Google Chrome, Brave, Firefox, Opera and Edge.

Here are the steps to stake MATIC on MetaMask:

Step 1:  Add MetaMask as a browser extension.

Download MetaMask on your machine and install it as browser extension

To stake MATIC on MetaMask, users need to visit the MetaMask website and set it up as a browser extension. Go to “Download.” One can choose between the currently used browser and iOS or Android. Select the download option for the browser to add MetaMask.

Step 2: Connect MetaMask to the Polygon blockchain.

MetaMask is compatible with different blockchains. To connect MetaMask to Polygon, go to “Networks” and “Add network.” In the window that appears, users must populate relevant data regarding the Polygon blockchain.

Click Add Network

Step 3: Transfer MATIC tokens to MetaMask.

To transfer MATIC tokens to the MetaMask wallet, copy the address from the wallet and feed it in as the destination address on the exchange or another wallet. Now, transfer MATIC tokens to MetaMask. 

Step 4: Connect MetaMask to the Polygon Wallet.

On the following link, click “MetaMask” to connect MetaMask to the Polygon wallet. https://wallet.polygon.technology/ 

Step 5: Stake MATIC via MetaMask.

Once the connection is established, staking is enabled.

Step 6: Delegate MATIC.

Select a validator to which tokens will be delegated.

One needs to use the control panel for staking. Click on the button “Apps” and then select “Staking.” Put the validator’s name in the search bar and click “Delegate.” All relevant information, such as the number of tokens staked, uptime and commission amount, is visible next to the validator’s name.

Feed in the MATIC amount for staking and click “Continue.” In the pop-up extension window, click “Confirm.” The transaction might take a few minutes to complete, depending on traffic.

To execute a transaction, stake MATIC and begin receiving rewards, users must buy a voucher and pay for gas. Click “Buy Voucher.” Specify details like the gas limit and price, and re-confirm the transaction.

Delegation is now complete. Users can “Stake more” or withdraw the rewards using the control panel. However, note that all transactions on the Ethereum network are paid in Ether (ETH). Therefore, the delegator must have enough ETH in the wallet to pay for the transactions.

How to stake MATIC on Coinbase Wallet

To stake MATIC on Coinbase, users need to use a wallet, as they don’t provide a staking feature on the exchange. If users have funds on the exchange but not in the wallet, they will need to move funds to the wallet. Even though Coinbase Wallet doesn’t have a built-in staking feature, there is a way to do it.

Here are the steps leading to staking MATIC on Coinbase Wallet.

Step 1: Install Coinbase wallet.

Install Coinbase wallet

Install Coinbase Wallet on your smartphone. If it is an iPhone, go to the Apple App Store; visit the Play Store for Android.

The process includes creating a new wallet, agreeing to the terms of service, picking a username, setting privacy preferences, creating a passcode and backing up the wallet with a recovery phrase to help access the account in case users forget the passcode.

Step 2: Move funds to the wallet.

Open the wallet and go down to the bottom right. Tap there and scroll down the screen that appears. The link “Connect to Coinbase” will be visible. Hit the link, and it will ask for authorization. Once done, the wallet will establish the user’s connection to their wallet.

Hit “Buy or transfer.” When the exchange prompts you to select a coin, select “MATIC wallet.” Now, users can feed in the number of coins they want to transfer. The wallet will ask for a verification code. Once successfully deposited, funds will be transferred. MATIC tokens on Coinbase exchange are ERC-20 tokens, meaning they run on top of the Ethereum network. 

Step 3: Stake MATIC.

Click Polygon wallet to find the option Polygon staking (1)

Visit the  Polygon website. On the top menu, click “Use Polygon” and “Staking.” On the next page, click “Become a delegator.”

To delegate click Become a Delegator

The user is taken to a page displaying a list of validators and their relevant details. One can sort the list in line with four parameters: performance, commission, stake and random, by clicking a drop-down list on the right of the page. The user can view the validators as a grid or a list. They can also search for a specific validator using a search box on the left.

When users click any of the validators, they are taken to the page displaying further details of the relevant validator, such as MATIC staked, the commission asked, checkpoints signed and health status. Users can go through the list and click any validator.

A different page displays further details of the validator. This includes the amount of MATIC their Ethereum wallet balance holds and its value in dollars, their stake, heimdall fee, rewards earned, performance index, checkpoints signed and more. Heimdall fees refer to the fees the validator has to pay using the Polygon network to submit checkpoints.

The user must log in by clicking the button at the top-right using their credentials. Users without an account on Polygon must create one and click the “Become a Delegator” button.

Log in and click Become a Delegator

Users need to populate the number of MATIC coins they intend to delegate and tap “Continue.” When the user clicks “Continue,” a pop-up appears. The user must tap the “Delegate” button to complete the process.

How to stake MATIC on Trust Wallet

Trust Wallet is a decentralized, noncustodial mobile app wallet for storing, exchanging and transferring crypto assets. Here is the process to stake MATIC on Trust Wallet:

Step 1: Set up a Trust Wallet. 

Set up a Trust Wallet on your mobile phone. Select the preferred operating system (iOS or Android) and install the app.

If users have already been using Trust Wallet, they must import the wallet. Otherwise, they have to set up a new wallet. To import an existing wallet, click the “I already have a wallet” button and  confirm a six-digit passcode.

If a user is uninitiated with the wallet, they must read and agree to the privacy policy and terms of service, create and confirm a six-digit passcode and back up the wallet with a recovery phrase.

Trust Wallet allows a wallet for several coins, but a multicoin wallet is usually the most suitable. As MATIC staking occurs on Ethereum, one requires an adequate amount of ETH and MATIC on the Ethereum mainnet.

Step 2: Connect Trust Wallet to Polygon. 

Log in to the Polygon staking dashboard and click “Become a Delegator.” From the list of wallets, select “WalletConnect” to connect to Trust Wallet on Polygon. A QR code will appear on the screen.

Select WalletConnect to get connected to Trust Wallet

Return to the Trust Wallet app, go to the settings and choose WalletConnect. Click the “New Connection” button. Scan the QR code on the Polygon staking dashboard. Click “Confirm” to establish the connection.

Step 3: Delegate and approve transaction.

Select the validator and click “Delegate.” Feed the number of MATIC coins to be staked and click “Continue.” To approve the transaction, confirm the smart contract call in the Trust Wallet app.

Get back to the Polygon staking dashboard and click “Delegate.” Confirm yet another smart contract call in the Trust Wallet app. Delegation is active and users can begin accruing rewards. 

How to stake using Ledger

Ledger is a popular device for storing cryptocurrencies. Before staking MATIC with Ledger, one needs to prepare for it.

Step 1: Prepare for staking.

The process starts with updating Ledger Live to the latest version using the link: https://www.ledger.com/ledger-live/download 

Connect the Ledger device to “My Ledger” and install the latest version of the ETH app on the Ledger device. Enable blind signing in the ETH app settings. When the preparation process is completed, Close Ledger Live or problems might arise when working with MetaMask.

Users also need to ensure MATIC is stored in the Ledger Ethereum account and not in the Polygon account, as MATIC staking happens on the Ethereum network.

Step 2: Connect Ledger ETH account to MetaMask.

Connect the Ledger device to the desktop and open the ETH app within. Now, link the Ledger ETH account to MetaMask.

Once the connection is established, go to the Polygon Wallet app.

Connect your Ledger Ether account to MetaMask by following these steps. 

Once done, go to the Polygon Web Wallet app, select “Connect to a Wallet” and then MetaMask.

When MetaMask opens in the browser, select the Ledger account, click “Next” and then “Connect.” Ledger displays “Sign message.” Select “Sign message” and simultaneously press both buttons to confirm. Now, MetaMask is connected to the Polygon Wallet app.

Step 3: Select a validator.

Select “Polygon Staking.” In the app’s top-right corner, click the “Login” button and select MetaMask again.

Choose a validator from the list that appears. Users need to consider two parameters: a high score for “Checkpoint signed” and a low “Commission.” 

Step 4: Delegate.

Click the “Delegate” button, fill in the amount of MATIC to be staked and click “Continue.” MetaMask displays “Give permission to access your MATIC?”

Review the fee amount; if it looks satisfactory, click “Confirm.” Ledger now displays “Review transaction.”

Select “Accept and send” and press both buttons simultaneously to “sign the transaction.” Ledger now displays “Application is ready.”

Return to the Polygon Web Wallet App, select a validator and click “Delegate.”

Review and confirm the transaction through MetaMask and Ledger devices. When the Ethereum network confirms the transaction, the screen will display “Delegation Completed.”

How to stake MATIC using ZenGo wallet

ZenGo is a self-compatible wallet. It’s compatible with WalletConnect, with no seed phrase vulnerability. Let’s go through how users can stake MATIC using a ZenGo wallet.

Step 1: Install the ZenGo wallet on your mobile phone.

Visit the ZenGo website, select an operating system (iOS or Android) and install the app on the mobile phone. To accelerate the search, one can scan the QR code.

Open the ZenGo app, enter an email address and tap “Continue.” ZenGo requires the user to confirm their email address. For confirmation, reach the inbox by tapping “Open My Email” in the ZenGo app, then tap “Tap to Confirm” in the email received. After email address verification, enable biometrics to make the app even more secure.

Create a Recovery Kit for the safety of funds and easy access when changing devices. As a noncustodial wallet, ZenGo shares an encrypted secret key share. Part of the key stored on the device helps unlock the wallet and use it with a face scan. Once the Recovery Kit is created, tap “Done.”

Create a face scan and recovery kit

Step 2: Connect ZenGo wallet to Polygon.

Users need to connect the ZenGo wallet to Polygon. Open the link https://staking.polygon.technology/ 

Go to the Polygon staking dashboard. In the upper right part of the screen, tap “Login.”

Take an account of Overview and login

Tap WalletConnect from the list of available connections. WalletConnect protocol enables one to connect ZenGo to Polygon. The QR code will appear.

Go to the ZenGo wallet homepage and tap the “Connect to Apps” button in the upper right corner. Scan the QR code.

Step 3: Select a validator and delegate MATIC.

Now begins the process of delegating MATIC. Make sure to have MATIC in ERC-20 and 0.05–0.1 ETH for fees, as the delegation happens on the Ethereum mainnet.

On the Polygon staking dashboard, scroll down to find information such as the network’s overview, active validators, their amount of stake, uptime, commission, amount of stake and health metrics.

Select a validator after considering the metrics and tap “Delegate” at the bottom-right of the screen.

In the pop-up box that appears, users need to enter the amount of MATIC to be staked and tap “Continue.” You can stake with an amount as low as 1 MATIC. To confirm the transaction, return to the ZenGo app and approve the transaction in the pop-up window.

Revisit the Polygon staking dashboard and tap “Delegate.” In the ZenGo wallet, confirm the transaction and wait for approval.

Delegation complete

Once delegation is active, the user will begin receiving rewards. At each checkpoint, rewards get accrued.

Rewards are received in the “My Account” section of the Polygon staking dashboard. Users can also unstake, stake to multiple validators or restake funds. To withdraw the rewards accrued, users must have a minimum of 2 MATIC in their account.

The road ahead

As a prominent layer-2 network, the Polygon protocol is a solution that helps Ethereum expand in size, security, efficiency and use cases. As the unit of payment and settlement in the network, MATIC helps power the system. The Matic network went live in 2020, rebranded to Polygon in February 2021, and is being used by developers to build Ethereum-compatible decentralized applications.

The Polygon protocol has been instrumental in making Ethereum usable and pulling it out of the mess the blockchain found itself in after rapid growth. Transactions were stuck for hours over a lack of scalability, with the cost of executing transactions often more than the transaction amount itself. The Polygon protocol has effectively transformed Ethereum into a full-fledged multichain system with the advantages of Ethereum’s decentralization and vibrancy.

MATIC token is here to stay and keeps playing an increasingly important role in retaining the functionality of Ethereum ecosystem. Staking, meanwhile, will serve as a mechanism to ensure proper governance and security of the network.

Crypto Biz: Global AI race ramps up, Winklevoss $100M loan to Gemini, and more

Recent days have seen new players emerge in the race for artificial intelligence, with business giants announcing AI initiatives.

The artificial intelligence (AI) global race has taken on new players in the past days, with Twitter and Alibaba reportedly integrating the technology into their businesses. The Chinese giant is working on its own chatbot assistant, while the social media platform is apparently leveraging AI to “detect & highlight manipulation of public opinion”. It’s worth remembering that Twitter CEO Elon Musk recently spearheaded a letter calling for the halt of advanced AI development due to societal concerns. As the proverb says, “if you can’t beat your enemy, join them”. 

While the AI landscape is taking shape, crypto exchange Gemini has secured a $100 million personal loan from its founders, Tyler and Cameron Winklevoss. Funding comes after alleged external capital raising attempts failed.

This week’s Crypto Biz looks at the AI market competition worldwide, the Winklevoss’ loan to Gemini and MetaMask move to allow crypto purchases.

Winklevoss twins infuse Gemini with $100M personal loan

Co-founders of crypto exchange Gemini Tyler and Cameron Winklevoss have reportedly dipped into their own pockets to fund the business amid the crypto market downturn through a personal $100 million loan. The cash injection follows previous attempts to raise capital from outside investors. The Winklevoss brothers are funding Gemini amid regulatory scrutiny in the United States. In January, the U.S. Securities and Exchange Commission charged Gemini with offering unregistered securities through the exchange’s Earn program.

Elon Musk reportedly buys thousands of GPUs for Twitter AI project

Tech billionaire Elon Musk seems to be making progress with his plans on developing Twitter’s artificial intelligence (AI) infrastructure. According to anonymous sources familiar with the company, the Twitter CEO recently purchased nearly 10,000 graphics processing units (GPUs) to be used on the platform. Typically, GPUs work on large-scale AI models due to the massive computation power required by the technology. The alleged purchase comes a few days after Musk spearheaded a letter calling for the halt of AI development due to societal concerns.

MetaMask launches new fiat purchase function for cryptocurrency

MetaMask has announced the launch of a new feature that will allow users to purchase crypto with fiat currency directly from its Portfolio Dapp. According to MetaMask, the goal is to offer users an easier way to purchase crypto with fiat currency. A wide range of cryptocurrencies are available for purchase in the feature through debit and credit cards, as well as PayPal, bank transfers, and instant ACH (Automated Clearing House). The service will be rolled out to users in over 189 countries across eight different networks. MetaMask claims the service takes the user’s location into account and follows local regulations.

Tech giant Alibaba to roll out ChatGPT competitor AI

Chinese e-commerce giant Alibaba is joining the global artificial intelligence (AI) race with its own version of a chatbot assistant. Alibaba announced the rollout of the ChatGPT-like product in the “near future.” The new product will be called Tongyi Qianwen, which translates to English as “seeking an answer by asking a thousand questions.“ The chatbot will be first available in English and Mandarin. It will be also integrated with Alibaba’s vast ecosystem of tech businesses, including the workplace messaging app, DingTalk, and voice assistant smart speaker, Tmall Genie.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

MetaMask third-party provider hacked, exposing email addresses

The incident affected users who submitted a MetaMask customer service ticket between August 1, 2021 and February 10, 2023.

The email addresses of some MetaMask users may have been exposed to a malicious party due to a recently discovered cybersecurity incident. According to parent company ConsenSys, the incident affected users who submitted a customer support ticket to MetaMask between August 1, 2021 and February 10, 2023.

According to the April 14 blog post, unauthorized actors gained access to a third party’s computer system that was used to process customer service requests, potentially allowing them to view customer support tickets submitted by MetaMask users.

These tickets did not ask for information other than what was necessary to help the user, including an email address to facilitate replies. However, they did include a “free text-field,” which some users may have used to submit personally identifying information. This may have included “economic or financial information, name, surname, date of birth, phone number, and postal address,” the post stated.

ConsenSys emphasized that it does not ask for personally identifying information in customer conversations, but some may have provided it anyway.

The company estimates that the breach may have affected up to 7,000 MetaMask users who submitted customer support tickets.

In response to this incident, hardware wallet provider Keystone warned MetaMask users that some might receive more phishing emails due to the incident since the attacker may use this swiped email database to look for potential victims.

Phishing is a scam that tricks a user into providing sensitive information to an attacker. It is often performed by sending an email to the victim that appears to be from a trusted party or someone the victim knows.

Related: MetaMask launches new fiat purchase function for cryptocurrency

ConsenSys said it had taken steps to eliminate unauthorized access in the future. As a result, tickets submitted after February 10 should be unaffected by the incident. The company also contacted the Data Protection Commission of Ireland and the Information Commissioner’s Office of the United Kingdom to report the breach. In addition, the company’s third-party customer service provider is working with a cybersecurity and forensics team to perform a more detailed investigation of the incident.

MetaMask came under fire from privacy advocates in late 2022 when it revealed that it sometimes logged users’ IP addresses. However, it updated its app in March to give users more control over which providers could obtain this information.

MetaMask third-party provider was hacked, exposing email addresses

The incident affected users who submitted a MetaMask customer service ticket between August 1, 2021 and February 10, 2023.

The email addresses of some MetaMask users may have been exposed to a malicious party due to a recently discovered cyber-security incident. According to parent company ConsenSys, the incident affected users who submitted a customer support ticket to MetaMask between August 1, 2021 and February 10, 2023.

According to the April 14 blog post, unauthorized actors gained access to a third party’s computer system that was used to process customer service requests, potentially allowing them to view customer support tickets submitted by MetaMask users.

These tickets did not ask for information other than what was necessary to help the user, including email address to facilitate replies. However, they did include a “free text-field,” which some users may have used to submit personally identifying information. This may have included “economic or financial information, name, surname, date of birth, phone number, and postal address,” the post stated.

Consensys emphasized that it does not ask for personally identifying information in customer conversations, but some may have provided it anyway.

The company estimates that the breach may have affected up to 7,000 MetaMask users who submitted customer support tickets.

In response to this incident, hardware wallet provider Keystone warned MetaMask users that some might receive more phishing emails due to the incident since the attacker may use this swiped email database to look for potential victims.

Phishing is a scam that tricks a user into providing sensitive information to an attacker. It is often performed by sending an email to the victim that appears to be from a trusted party or someone the victim knows.

Related: MetaMask launches new fiat purchase function for cryptocurrency

Consensys said it had taken steps to eliminate unauthorized access in the future. As a result, tickets submitted after February 10 should be unaffected by the incident. They have also contacted the Data Protection Commission of Ireland and the Information Commissioner’s Office of the United Kingdom to report the breach. In addition, the company’s third-party customer service provider is working with a cyber-security and forensics team to perform a more detailed investigation of the incident.

MetaMask came under fire from privacy advocates in late 2022 when it revealed that it sometimes logged users’ IP addresses. However, it updated its app in March to give users more control over which providers could obtain this information.

MetaMask launches new fiat purchase function for cryptocurrency

The new feature will allow users to purchase cryptocurrencies using various payment methods, such as debit or credit cards, PayPal, bank transfers and instant ACH.

Cryptocurrency wallet and decentralized application (DApp) provider MetaMask has announced the launch of a new feature that will allow users to purchase crypto with fiat currency directly from its Portfolio Dapp. The move is intended to provide users with an easier way to purchase crypto with fiat currency.

The new “Buy Crypto” feature enables MetaMask users to purchase a wide range of cryptocurrencies using various payment methods, including debit or credit cards, PayPal, bank transfers, and instant ACH (Automated Clearing House). The service will be rolled out to users in over 189 countries and will offer more than 90 tokens across eight different networks, including Ethereum, Polygon, Arbitrum, BNB Smart Chain, Avalanche Contract Chain, Fantom, Optimis and Celo.

To access the feature, MetaMask users can connect their wallets to the Portfolio Dapp or click on the “Buy” button in the MetaMask extension wallet. From there, users can select their region, payment method, and the token and network they want to purchase on.

The feature also takes into account a variety of factors, such as the user’s location and local regulations, to provide a customized quote for each purchase. Once the user has selected a quote, they will be redirected to a third-party provider’s website to complete the transaction. The funds will then be deposited directly into the user’s MetaMask wallet.

Related: Scam alert: MetaMask warns users of deceptive March 31 airdrop rumors

Over the years, MetaMask has partnered with several organizations to help onboard new users to its platform.

In 2022, Metamask partnered with PayPal to allow MetaMask users to purchase and transfer Ether (ETH) via PayPal’s platform. The service, announced on Dec 14, enables users to purchase and transfer ETH from PayPal to MetaMask by logging onto their Mobile MetaMask app, which would then redirect them to their PayPal account to complete transactions.

Additionally, on March 21 MetaMask announced a new integration with crypto fintech provider MoonPay that allows Nigerian users to purchase crypto through instant bank transfers. The new feature, available in the MetaMask mobile and Portfolio DApp, offers a simpler and cheaper way to buy crypto without using credit or debit cards. 

Crypto Biz: Mastercard opens network to USDC, OKX departs Canada, Bitcoin climbs

Despite global bank turmoil and regulatory crackdowns, traditional and decentralized finance (DeFi) are continuing to blend.

Banks turmoil and regulatory crackdowns happening worldwide have not slowed down the ongoing blending of traditional and decentralized finance (DeFi). The on-ramps connecting the two sides seem even stronger despite the wild winds of change.

Take, for example, the recent issues that Circle-issued USD Coin (USDC) faced when it depegged from the U.S. dollar following Silicon Valley Bank’s collapse. Two weeks later, Mastercard boldly integrated the stablecoin into its infrastructure in the Asia-Pacific region, allowing users to spend USDC through its network. It’s happening, folks!

And let’s not forget about Bitcoin (BTC) — that digital gold is still on the rise and decoupling from Wall Street, once again proving its value proposition and prompting calls for a hedge against equity markets in the long run.

This week’s Crypto Biz documents the latest developments on worldwide crypto adoption, and how banking system fears impact the crypto space.

Mastercard to settle transactions for stablecoin wallet in APAC

Global payment provider Mastercard has made another move into the crypto space to allow retail customers in the Asia-Pacific region to spend stablecoins anywhere Mastercard is accepted. This move was made possible by a partnership with Stables, an Australian stablecoin platform. Users can spend and save USDC by converting it into fiat and settling on the Mastercard network. The wallet will accept deposits in several stablecoins, including Tether (USDT) and Binance USD (BUSD), with all deposits automatically converted into USDC.

MetaMask enables direct crypto purchases in Nigeria

On-ramps for digital assets are also increasing in Nigeria, as crypto wallet MetaMask expanded direct transactions with local banks. MetaMask’s parent firm ConsenSys has partnered with crypto fintech MoonPay, enabling users in the country to purchase crypto via instant bank transfers without requiring a credit or debit card. The integration is estimated to reduce the decline rate for direct crypto purchases in Nigeria from 90% to 30%. Nigeria is a major market for MetaMask, ranking third in mobile monthly active users. Chainalysis ranks Nigeria as one of the top 20 countries in cryptocurrency adoption.

OKX to cease operations in Canada by June 22, 2023

In a “temporary” bye-bye, crypto exchange OKX emailed Canadian users that the firm “will no longer provide services or allow users to open new accounts in Canada starting on March 24, 2023.” OKX cited “new regulations” behind the move, saying it is only temporary while it works with regulators. By June 22, OKX’s customers in the country must close open options, margins, perpetuals and futures positions. Fiat or tokens must also be withdrawn by that date. In February, The Canadian Securities Administrators published a notice requiring crypto exchanges to sign new, legally binding undertakings while they await registration with regulators. 

Off-boarding message sent to Canadian OKX users on March 20, 2023. Source: OKX

Bitcoin’s banking crisis surge will ‘attract more institutions’: ARK’s Cathie Wood

With fears of a global banking crisis on the rise, Bitcoin’s value proposition is on full display as its price continues to climb following the collapses of Silvergate, Silicon Valley Bank and Signature Bank. ARK Invest CEO Cathie Wood believes the current decoupling of BTC’s price to the equity markets may attract more institutional investors into Bitcoin over time. As for the impact on Bitcoin’s price from institutional interest, Wood expects that most firms would allocate between 2.5% to 6.5% of their investment portfolios to BTC by 2030, taking the leading cryptocurrency’s price to $1–1.5 million.

The impact of the Credit Suisse bank crisis on the crypto market

How to analyze banks and avoid inaccurate market capitalization indicators — such as the $15.8 billion value of Silicon Valley Bank? Crypto analyst Marcel Pechman delves into the enterprise value metric and how it provides a better picture of a bank’s balance sheet terms by subtracting net debt from market cap. Of course, Pechman first explains the relationship between banking valuation and cryptocurrencies, specifically Bitcoin’s ethos. 

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

MetaMask enables direct crypto purchases in Nigeria

Crypto investors in Nigeria no longer need to rely on centralized exchanges for buying cryptocurrencies like Bitcoin.

Self-custody cryptocurrency purchases are becoming more accessible in Nigeria as major crypto wallet MetaMask expands direct on-ramps with local banks.

On March 21, MetaMask’s parent firm ConsenSys announced a new integration with crypto fintech MoonPay, enabling users in Nigeria to purchase crypto via instant bank transfers.

The new feature is available within the MetaMask mobile and Portfolio DApp, significantly simplifying the process of buying crypto without using credit or debit cards in Nigeria.

Source: ConsenSys

Before the partnership, MetaMask users in Nigeria had access to the MetaMask wallet, but the process of buying crypto was costly and time-consuming, MetaMask product manager Lorenzo Santos told Cointelegraph. He stated:

“While Moonpay had a card integration feature, about 90% of attempts to buy crypto with a credit or debit card were declined.”

With the new integration supporting local bank transfers, crypto purchases on MetaMask are now faster and cheaper, allowing users to access crypto without sending assets from a centralized exchange.

MoonPay chief product and strategy officer Zeeshan Feroz told Cointelegraph that the integration is estimated to reduce the decline rate for direct crypto purchases in Nigeria from 90% to 30%. He noted that customers of all banks in Nigeria would have access to the service through bank ransfers, which is a widely used payment method across Nigerian e-commerce businesses.

Despite the current issues with crypto on-ramps in Nigeria, the country has emerged as a major market for MetaMask, ranking third in mobile monthly active users, Santos said. “It is also among the top ten countries regarding visitors to metamask.io over the last month,” he added.

Related: Nigerian president-elect aims to use blockchain technology in the banking sector

According to the Chainalysis 2022 Global Crypto Adoption Index, Nigeria is one of the world’s top 20 ranked countries in cryptocurrency adoption. Some reports suggest that 35% of the Nigerian population aged 18 to 60 owned or traded cryptocurrencies in 2022. That is despite the Central Bank of Nigeria banning banks from servicing crypto exchanges in February 2021.

In December 2022, local media reported that the Nigerian government was preparing to pass a law recognizing the usage of Bitcoin(BTC) and other cryptocurrencies to keep up to date with “global practices.”

Infura is to blame for MetaMask’s violation of the crypto spirit

ConsenSys announced in November that Infura, MetaMask’s API provider, was collecting wallet and IP addresses from MetaMask’s users.

Censorship resistance is the foundation of crypto, so for many cryptocurrency purists, the Nov. 23 announcement by ConsenSys, the New York-based company behind the leading Ethereum browser wallet, informing its 20 million MetaMask users that their IP and wallet addresses would be collected was simply a gross violation of the crypto spirit.

In the weeks that followed, ConsenSys first reacted by saying the data collected would only be retained for seven days and then that it had updated the MetaMask features to allow users to opt out of Infura. However, the question remains: Have they done enough to establish crypto resistance?

While many may be OK with MetaMask tracking users’ wallets and IP addresses, many more of us are not because blockchain is supposed to be about decentralization and giving people the power to control their data and their finances without intermediaries — such as banks and governments.

Related: Are we still mad at MetaMask and ConsenSys for snooping on us?

For the sake of a healthy debate, let’s say we are fine with MetaMask tracking users’ wallets and IP addresses in certain acceptable instances. Those reasons could be in the case of a malicious attack. The information gathered by the Infura protocol could help track down the criminals involved.

Perhaps, more importantly for ConsenSys, the “spying” could have more to do with official regulations, such as Know Your Customer laws, Anti-Money Laundering laws and financing terrorism.

However, the reasoning behind the decision to “spy” or end MetaMask user privacy features is highly concerning — and even a bit frightening — because it clearly contravenes the crypto spirit.

Control and ownership back to users

The crypto spirit centers on putting people back in control of their assets so they can do what they with them and when they wish and have ownership over their data so they can participate in the decentralized economy, such as the machine economy, by monetizing their information.

Infura is mainly to blame for violating the crypto spirit by tracking users’ IP and Ether (ETH) wallet addresses while advising MetaMask’s users to spin up a whole new Ethereum node or to use a different node provider if they are so concerned over lnfura’s intrusions.

Suppose Infura (or any other API provider) holds users’ IP and ETH addresses. In that case, it can quickly locate the user’s home and tie it back to all the ETH assets and on-chain transactions users have made. That is quite scary.

Contradictory intrusions

That raised a fascinating debate among the crypto community. While the Ethereum blockchain provides censorship resistance, API providers such as Infura, which provide access to the Ethereum blockchain, are not obligated contradictorily to be censorship resistant.

That represents a considerable risk for users of MetaMask or, for that fact, any other wallet, such as these Ethereum API nodes, because it makes them vulnerable to censorship without any prior notification or warning.

Related: Coinbase is fighting back as the SEC closes in on Tornado Cash

And then came Alchemy and MyEtherWallet, which tried to “cash in on MetaMask users’ concerns,” only to surface as two crypto wallet solutions that also track user data.

It is true that anyone can send Bitcoin (BTC) to anyone — even if the police or government doesn’t approve. However, if BTC were not censorship-resistant, those authorities could seize or block that Bitcoin. Crypto was created with censorship resistance in mind because we need and cherish our right to privacy.

It is also ironic. Blockchain developers have racked their brains to design the chain to be censorship resistant. However, the API node provider “hijacks” the original intention and silently changes it, and all the while, the potential victims — users — are not informed of the modifications.

In light of Infura’s violations of the “crypto spirit,” here are two considerations.

Crypto enthusiasts should continue monitoring API providers and notifying communities when they behave unethically

  • Monitoring from the public is required, as done by the two whistleblowers via their Twitter accounts.
  • MetaMask and other wallets must inform users immediately and clarify the terms of their privacy. For example, they should tell users they are using Infura, which does not ensure their privacy 100%. That, arguably, was not done properly or in a sufficiently overt manner in November.
  • Builders of decentralized applications (DApps) should be responsible for notifying people that an API node in use is not secure or censorship-resistant to raise awareness.

What type of technology can address this concern soundly?

  • API node-as-a-service makes it simple for non-tech users to spin up API nodes for their wallets. That should be as easy for both users and developers alike as purchasing a VPN service.
  • In math we trust. Technology always fights for freedom on behalf of people. Ethereum co-founder Vitalik Buterin recently posted an “Incomplete Guide to Stealth Addresses,” which does not require new technology. However, if implemented on Ethereum, they partially address the privacy violation concerns raised by Infura. People can still locate a user’s house using Infura, but not their on-chain transactions or assets.
Raullen Chai is the co-founder and CEO of IoTeX. He previously worked for companies including Google, Uber and Oracle. He holds a Ph.D. from the University of Waterloo, where his research focused on designing and analyzing lightweight ciphers and authentication protocols for the Internet of Things. At Google, he led security initiatives for its technical infrastructure, including the mitigation of SSL attacks, privacy-preserving SSL offloading and enabling certificate transparency for all Google services. He was also the founding engineer of Google Cloud Load Balancer.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

MetaMask issues scam alert as Namecheap hacker sends unauthorized emails

Web hosting company Namecheap detected the misuse of one of its third-party services for sending some unauthorized emails, which directly targeted MetaMask users.

Popular crypto wallet provider MetaMask warned investors against ongoing phishing attempts by scammers attempting to contact users through Namecheap’s third-party upstream system for emails.

On the evening of Feb. 12, web hosting company Namecheap detected the misuse of one of its third-party services for sending some unauthorized emails — which directly targeted MetaMask users. Namecheap described the incident as an “email gateway issue.“

In the proactive alert, MetaMask reminded its million followers that it does not collect Know Your Customer (KYC) information and will never reach out over an email to discuss account details.

The phishing emails sent by the hacker contain a link that opens a fake MetaMask website requesting a secret recovery phrase “to keep your wallet secure.”

The wallet provider advised investors to refrain from sharing seed phrases, as it hands complete control of the user’s funds to the hacker.

NameCheap further confirmed that its services were not breached and that no customer data was leaked in this incident. Within two hours of the initial intimation, Namecheap confirmed that its mail delivery was restored and that all communications would now be from the official source.

However, the main issue related to the mailing of unsolicited emails is still under investigation. Investors are advised to recheck website links, email addresses and points of contact when dealing with communications from MetaMask and Namecheap.

In response to Cointelegraph’s coverage on the subject, Namecheap confirmed being able to stop the fraudulent emails and contacted their upstream provider to resolve the issue from their end.

Related: OneKey says it has fixed flaw that got its hardware wallet hacked in 1 second

In January, a hacker used Google Ad services to steal nonfungible tokens (NFTs) and cryptocurrencies from investors.

NFT influencer NFT God lost “a life-changing amount” after accidentally downloading malicious software embedded in a Google advertisement.

The incident happened when the influencer used the Google search engine to download OBS, an open-source video streaming software. However, he clicked the link with a sponsored advertisement instead of the official link, which led to the loss of funds.

ConsenSys CEO: ‘We’ve retained virtually all of our capabilities’ after job cuts

The executive stated that the layoffs were due to concerns about “macroeconomic and geopolitical” issues that may affect the venture capital markets.

Blockchain software developer ConsenSys retains the ability to achieve its goals after recent layoffs, CEO Joe Lubin claimed in a Feb. 7 interview with Cointelegraph, stating that “we’ve retained virtually all of our capabilities.”

According to Lubin, the cuts were implemented “mostly because of potential headwinds and potential uncertainty” and partly because of declining volume in the ConsenSys ecosystem due to “macroeconomic and geopolitical” factors.

Lubin said his team had been concerned that impending troubles in the venture capital market would make it hard for crypto companies to raise cash, so the company had wanted to be prepared for this possibility, as he explained:

“There are some pretty concerning things happening still in supply chains, in materials and chips, in VC financing, potentially there’s a lot of dry powder out there, but there’s gonna be a lot of companies going into market at the same time. And VCS are not kind and generous. They’re going to withhold until some sort of shakeout happens in the tech space I believe.”

Related: MetaMask to support all tokens via Snaps

Lubin said that the staff cuts have helped to provide “significant runway” to fund operations into the future and may even allow the company to buy some smaller firms that will “add really valuable pieces” to ConsenSys. In Lubin’s view, this has put the company in a strong position to weather whatever global economic troubles are coming in the near future.

Consensys announced layoffs of 11% of its workforce on Jan. 19. Several other blockchain companies also announced they were trimming staff in January, including Coinbase, Gemini, DCG, and Blockchain.com. This followed a year-long decline in cryptocurrency prices and trading volume in 2022. A report from CryptoCompare in October stated that the month had seen the lowest ever daily trading volume for crypto products, and Coinbase CEO Brian Amrstrong said in December that 2022 trading volume had been “roughly half” what it was the previous year.