MetaMask Promoted as ‘Top’ Cryptocurrency Exchange Platform, Confronts SEC Legal Action

48. Consensys unveiled its MetaMask Swaps feature to the public on October 6, 2020.

49. Following its launch, Consensys has actively promoted MetaMask Swaps through its website, metamask.io, and on various social media channels, including X (previously known as Twitter), positioning it as an opportunity for investors to engage in crypto asset and crypto asset securities markets.

50. Consensys, in its announcement on October 6, 2020, praised MetaMask Swaps for providing “the best trading experience in Defi,” referring to the ecosystem of decentralized finance.

51. Consensys highlighted that the platform offered users the “best prices” and “most substantial liquidity.”

52. The launch statement concluded by asserting that “MetaMask facilitates a greater number of trades with enhanced efficiency by charting an optimized path for every transaction.”

53. Similar promotional communications were posted on its website up until December 2023.

54. The website declared, “Achieve the most favorable price each time. Swaps connects you to a wide array of tokens and the most advantageous prices available.”

55. Further, the website elucidated that Consensys optimized trades by “sourcing superior prices and determining the most cost-effective liquidity provider in terms of gas.” (Here, “Gas” refers to the transaction fee required to process and validate transactions on the Ethereum blockchain. These fees fluctuate based on network demand; higher fees generally mean quicker transaction confirmations. Gas costs are non-refundable, even when transactions are unsuccessful.)

56. A blog post from January 2022 by Consensys presented MetaMask Swaps as “The Optimized DeFi Trading Platform,” advocating for its efficiency in achieving favorable trade executions.

57. Consensys also operates social media accounts on X under “@MetaMask” and “@MetaMaskSupport,” which serve to market MetaMask Swaps, notify investors about updates, and provide customer service.

58. For instance, a post by Consensys on X dated December 21, 2022, announced, “The Swaps experience has grown,” linking to a press release on MetaMask’s website, which elaborated on the expansion of MetaMask Swaps to more networks.

59. On the same day, another post targeting individuals new to MetaMask Swaps said, “Unsure what a Swap is? We’ll explain. Discover everything about MetaMask Swaps here,” showcasing an image that described MetaMask as “[t]he premier solution for token swapping” and an “Effortless method for Crypto Swaps and Token Exchanges via MetaMask.”

60. Consensys highlighted MetaMask Swaps on its website once again on July 17, 2023, under the headline “Unmatched convenience,” remarking on the service’s ease of use and efficiency from within the MetaMask interface, and underscoring users’ access to “optimal transaction value.”

61. Consensys has disseminated a video on its MetaMask website and YouTube channel, intended to market MetaMask Swaps as a brokership service of sorts for crypto assets: “Introducing MetaMask Swaps … The simplest way to trade Ethereum tokens directly from your MetaMask wallet.” This video has been available publicly since March 2021.

62. The video emphasizes the user-friendliness of the MetaMask Swaps platform, detailing its backend processes.

63. As explained in the video narration, MetaMask Swaps reviews multiple “decentralized exchanges” or “DEXs,” aggregators, and market makers to secure the most favorable prices, lowest network fees, and minimal slippage for its users.

64. Additionally, the footage points out that MetaMask Swaps can divide an investor’s trade across a range of providers to access greater liquidity.

65. The video ends with an assurance that MetaMask Swaps manages all these processes seamlessly, requiring minimal effort on the part of the user.