Crypto payments infrastructure firm MoonPay has introduced a new feature in its app, allowing users to exchange one cryptocurrency for another. The company stated in a recent post on X (formerly Twitter), “Introducing Swaps! Unlock the value from the assets you already own by swapping over 1,500 trading pairs.” This enhancement further expands MoonPay’s retail-facing crypto app, which initially enabled users to purchase cryptocurrencies and manage multiple wallets within the app.
Efficient and Cost-Effective Swapping
MoonPay has optimized the swapping feature to enhance efficiency. Instead of relying on smart contracts, which can be costly due to their complex operations, MoonPay executes the swaps through two sends: one for receiving the deposit and another for sending the quoted amount. This streamlined approach reduces the gas required for the swap, making the process more efficient and cost-effective.
“The new swapping feature simplifies and accelerates the process for our users,” explained Ivan Soto-Wright, co-founder and CEO of MoonPay.
Innovative Expansion
With a customer base of 16 million users worldwide, MoonPay has been venturing beyond its core payments infrastructure model. In addition to the app and non-fungible tokens (NFTs), MoonPay established a venture capital unit in August, focused on investing in early-stage web3 and fintech startups. The company also made its first acquisition this year, acquiring the web3 creative agency Nightshift to assist brands in offering web3 features.
The exceptional growth and investor support that MoonPay has garnered is apparent in its successful Series A funding round, raising $555 million led by Tiger Global Management and Coatue. This funding round resulted in a valuation of $3.4 billion. As part of this funding, MoonPay executives, including Soto-Wright, sold their shares and cashed out $150 million. Thereafter, Soto-Wright acquired a $38 million mansion in Miami, showcasing the success of MoonPay.
Legal Challenges
While MoonPay has experienced significant achievements, it has also faced legal challenges. In December 2022, the company was hit with a class action lawsuit alleging its involvement in a conspiracy with Bored Ape NFTs creator Yuga Labs and several celebrities to artificially inflate the value of NFTs. Furthermore, it was claimed in June 2023 that MoonPay gifted valuable Bored Apes NFTs to celebrities as part of a promotional strategy. MoonPay denies the allegations of providing celebrities with free Bored Apes but has not provided further details.
Continued Expansion in the Crypto Industry
MoonPay’s new swapping feature aligns with the ongoing expansion of payment giants in the crypto industry. In August, PayPal announced its plan to roll out its PYUSD stablecoin, a dollar-pegged asset issued by blockchain infrastructure firm Paxos. Additionally, Coinbase recently received regulatory approval to offer perpetual futures trading services to retail customers outside the United States.
