Can Magic (MAGIC) make money from Wallet-as-a-Service?
Interestingly, Magic (MAGIC)?a DeFi app replaced the noxious Pepe (PEPE)?as CoinMarketCap’s most trending cryptocurrency on 20 June 2023.
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Consequently, many speculators will wonder if decentralized finance (DeFi) is coming back. Interestingly, Magic received $52 million from strategic investors on 30 May 2023. That round included funds from PayPal Ventures. This investment brings Magic’s total raised capital to over $80 million, a press release claims.
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Interestingly, Magic became the most cryptocurrency on the same day Bloomberg reported Deutsche Bank AG (NYSE: DB) is seeking a crypto license ?in the European Union.* Deutsche Bank is the world’s 22nd largest bank with $1.49 trillion in assets ?in April 2023.
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Notably, Deutsche Bank’s asset manager, DWS, and Digital Holdings Ltd are developing a suite of blockchain exchange-traded products (ETPs) and digital assets for European trading.* Thus Big Finance is entering DeFi which drives interest in the sphere.
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What is Wallet-as-a-Service?
Wallet-as-a-Service (WaaS) providers such as PayPal (PYPL), Square (SQ), and Magic (MAGIC) connect consumers to the financial system.
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For example, PayPal’s wallet allows consumers to pay for retail transactions with money earned online. PayPal also connects E-commerce to bank accounts. Similarly, Magic’s Plug & Play Widget ?is an out-of-the-box wallet user interface (UI) for login, nonfungible token (NFT) Checkout, and on-ramping fiat currencies.
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They claim Magic’s Plug & Play Widget offers over 90% conversion with email, Google One Tap, and third-party wallets. Magic claims they design the widget for all levels of users.
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Additionally, they claim Magic’s White-Label Wallets are fully customizable, enterprise-grade, fast, and fully scalable. Moreover, Magic claims its White-Label Wallets offer over 10 authentication methods that plug into existing identity providers.
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Magic (MAGIC) Wallet-as-a-Service Solutions
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For example, they claim Magic Wallets streamline NFT and crypto onboarding with NFT Checkout & Minting and Fiat On-Ramps via credit cards, debit cards, PayPal, and Instant Bank ACH (Automatic Clearing House) services.
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Importantly, the Automated Clearing House?(ACH) is the primary system they use for electronics fund transfers (EFT).* In the ACH, they electronically deposit funds in financial institutions and make payments online. Hence Magic’s Wallets can connect NFT and cryptocurrency platforms with the banking system.
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They call this end-to-end Web3 Onboarding. It features over 20 authentication methods including email, SMS, Social media, Multi-Factor Authority (MFA), and integration with any identity provider.
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Magic’s Key Management Services (KMS) include performance and scale. They claim Magic’s wallet can support over 2000 generations per-second or transactions per second. Magic claims this is over 25 times faster than energy standards.
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They claim Magic Wallets can comply with Enterprise Compliance and many standards including SOC2 Type 2, CCPA, GDPR, HIPPA, and ISO. Non-Custodial Wallets with fully exportable keys are also available.
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Users can launch a powerful Magic software development kit (SDK). This kit includes on-call VIP support, white glove service, and service-level agreements (SLA). Finally, they claim Magic (MAGIC) wallets are compatible with over 20 blockchains including?Bitcoin (BTC), Ethereum (ETH), and Binance (BNB).
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How does make Magic (MAGIC) money?
Magic (MAGIC) claims to have onboarded over 20 million users for customers.
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Some large consumer brands including Mattel, Macy’s (M), and PayPal are using Magic’s wallets. Other Magic customers including Voice, Magic Eden, Immutable, Moralis, Even, and Kongregate.
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Magic makes money by charging users 5￠ per monthly active user (MAU) up to 5,000 MAUs. Then 10￠ per MAU over 5,000 MAUs. This charge covers pass-wordless Web3 onboarding, web, mobile, and gaming SDKs. Scalable key management on over and over 20 blockchains, widgets, and fiat on-ramping. Premium ad-ons start at $199 a month.
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Core Features are free with all plans. Custom-volume-based pricing is available for larger customers. Magic Wallet Services come with the custom pricing.
There is a Magic Auth Plus plan for $199 a month, a Magic Widget UI for $999 a month. A Magic Connect Plus widget for $199 a month. VIP support costs $1,999 a month. VIP support means Magic’s techs build and maintain your system for you.?
What Value does Magic (MAGIC) offer?
I like Magic (MAGIC)?because it is a DeFi platform that makes money the old-fashioned way. To explain, Magic charges customers for products rather than selling tokens.
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Mr. Market thinks MAGIC has some value. For example, it was CoinMarketCap’s 146th?most traded cryptocurrency on 21 June 2023. Magic had a 82.15￠ Coin Price, a $178.494 million Market Capitalization, a $285.025 million Diluted Market Cap, and a $67.234 million 24-Hour Market Capitalization on 21 June 2023.
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There was a $64.850 million Centralized Exchange (CEX) Volume and a $2.385 million Decentralized Exchange (DEX) Volume on 1 June 2023. They base those numbers on a 217.289 million MAGIC Circulating Supply, a 347.714 million Magic Maximum Supply, and a Total Supply of 339.647 million MAGIC.
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If you are seeking a protocol or token that can make money from DeFi. I think Magic (MAGIC) is worth examining. You need to investigate MAGIC because it could make money by charging for products and services for which there could be demand.
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*https://www.fiscal.treasury.gov/ach/#:~:text=The%20Automated%20Clearing%20House%20(ACH,and%20payments%20are%20made%20online.
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