Finance app MoneyLion isn't staying stagnant. Even though the company has already set its SPAC plans in stone, it's launching a major new feature—crypto investing.
What are the details of MoneyLion's new crypto investing feature, and what can investors expect as it heads toward a SPAC merger of its own?
MoneyLion's latest feature—crypto trading
Just weeks ahead of a planned SPAC merge, MoneyLion has launched a new crypto trading feature. Through MoneyLion, users will be able to buy and sell Bitcoin and Ether—the two most reputable and valuable cryptocurrencies on the blockchain markets.
In addition to this basic buying and selling feature, MoneyLion will also allow users to round up their debit card purchases to the nearest dollar with Bitcoin.
Given the news, it's clear that the app is now taking a more holistic approach to all-in-one finance.
To help the new feature gain traction, MoneyLion is launching a million-dollar prize fund. According to the company, "MoneyLion is sponsoring a $1,000,000 Crypto Prize Pool, offering early adopters of MoneyLion Crypto a Bitcoin reward. [...] The more participants who register, the greater the prize pool will grow. At the end of the promotional period, the entire pool funds will be equally distributed to all registrants, for up to a total of $1,000,000 in Bitcoin."
How MoneyLion will profit from users' crypto trades
Instead of charging transaction fees that consumers must pay in order to buy or sell Bitcoin and Ether, MoneyLion plans to earn revenue through its newest offering in a different way. Specifically, the app will profit off of the spread when users convert crypto holdings to fiat cash.
MoneyLion looks toward a reverse merger
MoneyLion is planning a reverse merger with blank-check company Fusion Acquisition Corp. (NYSE:FUSE). The SPAC deal comes after Fusion spent time targeting companies in the fintech or asset and wealth management sectors. MoneyLion fits within that scope, so it makes sense that the deal is moving forward.
Meanwhile, Fusion's sister SPAC, Fusion Acquisition Corp. II (NYSE:FSNB), hasn't identified a specific target yet.
This is just the start of crypto for MoneyLion
MoneyLion CEO Dee Choubey told reporters that this is step one in educating its users about what crypto is and how you can get involved in trading it. Down the line, MoneyLion might move beyond Bitcoin and Ether by offering other coins. Additionally, it might experiment with offering crypto payment solutions in partnership with major businesses. Choubey says that MoneyLion could even become an NFT marketplace all its own.
However, that's all speculative, and the app's upcoming crypto capabilities are much more beginner-friendly. "We will have created a segment of the population and have exposed them to DeFi, so when it becomes more ubiquitous, they’re fully prepared to take advantage of it," Choubey said.
When will ML stock hit the market?
It looks like ML stock will hit the market on Sept. 22 once it finalizes a reverse merger with its SPAC, Fusion Acquisition Corp. From there, the FUSE ticker will transfer to ML on the NYSE.