Mask Network: How to balance Web2 compatibility with Web3 innovation

Recently, the Token price of Mask Network hit a historical low, triggering widespread speculation among investors. Will it Rebound and return to the previous high, or will it continue to decline? follow the latest research of the project, let’s wait and see.

About MASK Network

Mask Network bridges Web 2 and Web 3, allowing seamless interaction with decentralized applications (dApps) within traditional social media platforms. By integrating privacy tools and financial functionalities into a familiar interface, it lowers the barrier to entry for Web 3 and promotes its adoption. Its unique approach embeds Web 3 functionalities into Web 2 platforms, improving accessibility and driving mainstream user interaction with decentralized ecosystems.

Basic Information

• ATH: $41.45
• ATL: $0.9765
• Current Price: $2.26
• Current holders: 13,939
• Market Cap: $226,218,552
• Fully Diluted Market Cap: $226,753,785.01*
• Circulating Supply: 100,000,000 MASK
• Total Supply: 100,000,000 MASK
• The performance of Token in the past three months:

Image from TradingView*

Growth Trend

SocialFi global market size forecast: According to the market report from Verified Market Research, the market size of SocialFi will grow from $12 billion to $125 billion, with a compound annual growth rate (CAGR) of 45%.

Data Source: Verified Market Research

Team Introduction

BTX Research Summary

Project Narrative

• Track Narrative

• SocialFi: SocialFi aims to decentralize social media, enabling users to own their own data, directly monetize content, and integrate financial services into social interactions.

• Project Narrative

• Mask Network is a protocol that embeds Web3 functionality (privacy tools, Token management, decentralized applications) into traditional Web2 social platforms such as Twitter. This lowers the entry barrier for mainstream users and promotes widespread adoption of decentralization.

**** Ecosystem Overview and Horizontal Comparison ****

Overview of the Ecosystem

Mask Network has been actively building the Web3 social ecosystem by supporting over 100 projects covering social protocols, social applications, infrastructure, games, and social intelligence. The network has established itself as a key player in the Web3 space by promoting growth through funding, investment, and hackathon activities.

Mask’s investment in key projects such as TON, RSS3, dHEDGE, Scroll Protocol, Tako Protocol, Decrypt, and Meson Network aligns with its decentralized vision. These investments further strengthen its decentralized social network ecosystem, promote a wider Web3 ecosystem, and facilitate the realization of user privacy, autonomy, and financial freedom.

Similar project comparison

BTX Research compilation

Need to solve the problem

In the field of social media and Web3:

1. Traditional social platforms have failed to truly empower users with ownership of their data.

2. Content monetization is usually controlled by centralized entities (such as advertising revenue).

3. The threshold for popularizing Web3 is still relatively high for ordinary users (due to technical complexity).

Solution

Products/Services Provided

• Mask Wallet (released in 2021): Allows for token management on social media and direct interaction with decentralized applications (dApps).
• Tessercube (released in 2019): A decentralized platform that focuses on privacy, used for secure data storage and collaboration.
• Next.ID (released in 2021): an open-source protocol for connecting Web2 and Web3 identities, focusing on follow user privacy.
• Firefly (released in 2022): A decentralized social networking platform that integrates blockchain and traditional content.

Founder’s Viewpoint

Founder Suji Yan envisioned a world where social media users can seamlessly leverage Web3 functionality on their favorite Web2 platforms.

Application Scenarios

• On Twitter: Users can encrypt posts, send encrypted tips, or interact directly with NFTs using Mask.
• DeFi integration: Access lending protocols through the same social interface.

Token Technical Architecture

Mask Network operates by integrating browser extensions or widgets to overlay Web3 functionality onto Web2 social platforms. This architecture simplifies the user onboarding process while preserving the security and decentralization features of blockchain technology.

The following diagram is an example of the collaboration of the Mask Network subsystems:

Data Source: Mask Network

System Workflow:

• Users initiate operations (such as clicking buttons) through Content Scripts.

• Content Scripts send requests to Background Service for processing.

• After the Background Service has finished processing, it returns the result to Content Scripts to update the UI.

• Users can modify settings through the Options Page, and these settings will also interact with the Background Service through message passing.

• Injected Scripts run when the web page is loaded, modifying the web environment to ensure that the functionality of Mask Network can work properly.

Token Economics

Token Type

• MASK: Function + Governance Token

• Function: Used for staking, governance, and certain service fees within the ecosystem.
• Governance: Used to vote on MaskDAO proposals.

Token Distribution

Data Source: CoinMarketCap

Token Unlock Progress

By January 2024, MASKToken will be fully unlocked.

Data Source: CoinMarketCap

Project development

• Cooperation and Business Expansion:

• DeFi (Decentralized Finance): Mask Network has integrated with well-known platforms such as Aave, MakerDAO, and Compound.
• Decentralized Data Management: Mask and Codatta collaborate to enhance data validation, identity management, and personalized services.
• Digital Identity Solution: Acquired the decentralized identity platform Nametag, providing users with greater control over their digital identity.
• Recent cooperation and school donations: Mask Network has donated funds to top universities such as UC Berkeley and HKUST. This will enhance its brand visibility.

• Airdrop Event: Mask Network has benefited from airdrop events such as Arbitrum DAO. In addition, there are potential rumors about future airdrops, which may further incentivize community participation.
• Funding Program: Mask Network has provided funding and investment to over 100 Web3 projects, helping to promote the development of decentralized ecosystems in various fields such as social protocols, DeFi, etc.
• Earning Mechanism: Mask Network provides a staking mechanism with an annualized return rate (APR) of about 25.76%, encouraging users to stake MASK Token and participate in network governance.

On-chain Data and Insights

On-chain data shows that the MASKToken ecosystem activity is steady and continuous.

Major Holders: Excluding foundation and exchange holders, the top 10 holders account for 5.22% of the total supply.

Token Allocation: The total supply of MASK Token is 100 million, and 100% is already in circulation.

Staking

• Staked Token: 3.11 million MASK Tokens are currently staked.
• Annual Percentage Rate (APR): Staking APR is 25.76%.

Token holding period

The data shows that most MASK Token holders have held for more than two years, indicating strong market confidence and long-term commitment.

Chart source: Nansen

Token Unlock Plan

As of January 2024, the Token of MASK Network has been fully unlocked. The Token release follows a gradual increase in circulating supply from 10.91 million in February 2021 to 100 million in January 2024, optimizing liquidity to support long-term development.

Fund Inflows and Outflows

The analysis of the 30-day inflow and outflow of funds for MASK Token in early 2025 shows that the fund flow is close to balance:

• Inflow: $223.7 million
• Outflow:****$2.2793 billion
• Difference: A small difference of $4.23 million indicates stable capital flows and no significant capital flight or accumulation.

(1) MASK Exchange inflow and outflow and price performance

Data Source: Cryptoquant

（2）MASK 30-day inflow

#### Data Source: Arkham

（3）MASK 30-Day Outflow

**#### Data source: Arkham

Trading and Token Holder Activities

• **Daily Token Transfers: An average of **550 Token transfers per day reflects the continuity of network activity and user participation.

• Holder Count: The number of holders of MASK Token is about 32,000, showing the continuous growth and diversification of the community.

（Data Source: Etherscan, Bscscan, Polygonscan）**

****** Investment Risk Warning **** There is significant risk in investing in MASK Network and its related digital assets, due to the inherent volatility of the cryptocurrency market. Although MASK Network is positioned as a leader in the Web3 social ecosystem, please be aware of the following key investment risks: 1. Market volatility risk: Cryptocurrency prices are highly volatile and may result in significant gains or losses in a very short period. The value of MASKToken may experience significant fluctuations, especially after market events or changes in investor sentiment.

2. Liquidity risk: MASKToken may experience periods of insufficient liquidity, especially in market downturns or when large holders choose to close their positions. This may lead to difficulties in executing trades at the expected price, resulting in potential slippage.
3. Regulatory Risk: The regulatory environment surrounding cryptocurrency remains uncertain. Regulatory actions in major markets may affect the legal status of MASK Token, impose restrictions on trading, or pose obstacles to the operation of MASK Network.