Business

What is Moonpay and why are so many celebrities getting behind it?


MoonPay is a crypto payment service. It allows people to buy and sell cryptocurrencies and NFTs using debit cards, credit cards, and several other major payment methods. Launched in 2019, the payment service has grown in popularity, riding the waves of the booming NFT market. The company recently revealed that it has raised approximately $87 million in funding from celebrities including Justin Bieber, Snoop Dogg, Gwyneth Paltrow, Post Malone, Ashton Kutcher and more.

But what exactly is MoonPay, and why are so many big names in Hollywood embracing the project? Let’s find out!

So what exactly is MoonPay?

As mentioned earlier, MoonPay is a payment service for cryptocurrencies and NFTs. What sets it apart from other payment services is that users can use fiat currency to perform crypto transactions. In technical terms, it is an access and exit service.

On-ramp refers to the exchange of fiat currency for digital assets, and off-ramp is the reverse. Since MoonPay accepts fiat payments, it is able to offer its users several traditional payment methods to purchase digital assets. One can make a transaction using debit card, credit card, Apple Pay, Google Pay, Samsung Pay, etc.

How did MoonPay become so popular?

The convenience offered by MoonPay has made it a popular service for retail investors and celebrities. According to the company’s website, the platform currently has more than 10 million active users, spread across 160 countries and has completed nearly $3 billion in transactions.

MoonPay was the go-to payment service when NFTs became popular. Users can buy their favorite NFTs without having to own cryptocurrencies. The platform gained popularity when celebrities started using it to purchase artwork from the infamous Bored Ape Yacht Club (BAYC) NFT collection.

The BAYC collection includes 10,000 digital portraits of bored monkeys with customizable accessories. When they were first introduced, they sold for $250 each. However, they have been a huge hit among celebrities, and the current asking price for a Bored Ape is around $300,000.

In a typical exchange, you first need to own a wallet, add an equivalent amount of cryptocurrency, and then make the purchase – a trivial and time-consuming process. With MoonPay, the process is much simpler. All the user needs to do is name a budget. MoonPay then uses its scarcity tools to arrive at a benchmark price for the digital asset.

MoonPay handles the process of buying the required crypto, then buying the NFT and charging the customer. “We tried to make it as similar to a process as you interact with your private bank,” says MoonPay CEO Ivan Soto-Wright. “Basically, you generate an invoice, you transfer money for that invoice, and then we settle the transaction,” he explained.

Thanks to its convenience, celebrities have flocked to the platform to buy coveted NFTs, like the BAYC collection. Some celebrities would also thank the platform for their service via tweets and this set of chain reactions.

Popular rapper Post Malone, who bought two BAYC NFTs through the platform, even included MoonPay in one of his clips. In the video for “One Right Now”, Post is seen buying a Bored Ape on the MoonPay platform.

Why are celebrities rallying behind MoonPay?

MoonPay raised $555 million through Tiger Global, Coatue and other investment firms in its first round of funding. Following this first funding round, the payment service added 60 new celebrity investors, who collectively raised $87 million for the platform.

Most of these celebrities were already MoonPay users, having purchased a Bored Ape or other NFT through the platform. As artists, they have realized the potential of NFTs, Web 3.0 and cryptos, and the revenue they bring with them.

“Web3 inspires the entertainment industry, and commerce in general, to reinvent the way we build community, connect with fans, create value and manage intellectual property,” said Gwyneth Paltrow after her investment. in MoonPay.

Seeing a potential partnership opportunity, Soto-Wright decided to approach celebrities in his network. “A lot of them have venture capital portfolios, a lot of them have their own independent businesses, and we came to them saying ‘we can help you understand the opportunities around Web3, crypto and of the metaverse,'” Soto-Wright said according to a post by CNBC. “We hardly had any refusals. Everyone wanted to be part of it.”

First post: STI


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