Analysts are warning that Decentraland’s $MANA token could be going to zero in wake of the US Security and Exchange Commission’s (SEC) labeling of the token as an unregistered security.
The US regulatory agency labeled the token as such as part of dual lawsuits unveiled against Coinbase and Binance last week, sending its price tumbling.
$MANA was last changing hands in the mid-$0.34s per token, down 25% for the month and down more than 94% versus 2021’s highs in the $4.95 area.
$MANA is the token that powers decentralized metaverse Decentraland’s economy.
The value of $MANA is directly related to the usage and adoption of Decentraland’s metaverse.
And signs on this front are not good.
In the last 30 days, only 2,650 unique wallets interacted with Decentraland’s smart contracts (i.e. transacted on the platform), according to DappRadar.
The SEC’s labeling of $MANA as a security could further dampen activity in the metaverse, as possible users and investors fear the prospect of their activities being disrupted by future higher levels of regulation.
If people all but stop using the platform, then $MANA could be headed back to zero.
Is Decentraland’s $MANA a Security?
To fund the development of its platform, Decentraland conducted a token presale back in 2017 that ultimately raised $25.5 million via the sale of $MANA tokens.
The SEC is likely to point to this early $MANA token distribution as an unregistered security sale.
That’s because the tokens were distributed to investors who arguably expected a profit based on the Decentraland team’s efforts to deliver on their project roadmap.
And profit the early investors did.
According to cryptorank.com, Decentraland presale investors who got in at the presale price of $0.028 are still up more than 12x, despite the cryptocurrency’s sharp retracement since its 2021 highs.
Ecoterra’s Presale is Flying
Things are going much better for a new green crypto project called ecoterra.
As outlined in the project’s Whitepaper, Ecoterra is building an all-in-one $ECOTERRA-powered web3 ecosystem, designed to encourage recycling via its first-of-its-kind Recycle-to-Earn (R2E) system, facilitate trade in recycled materials and encourage individuals and businesses to offset their carbon footprint.
And the project’s presale of its native $ECOTERRA token just hit a huge milestone.
Sales have now surpassed the $5 million, a strong vote of confidence in the project’s vision from the crypto investing community.
And observers expect the pace of the presale to pick up now that the project is accepting invitations for users to try out a demo version of the flagship R2E application.
Nascent green web3 projects like ecoterra are expected to play an increasingly important role in global efforts to address climate change in the decades ahead as crypto’s broader adoption increases.
It’s no wonder then that the crypto presale that ecoterra is currently running in order to fund the development of its platform has been a resounding success.
Ecoterra’s Revolutionary Platform Explained?
When harnessed right, blockchain technology holds an unprecedented ability to promote environmentally friendly behaviors by rewarding recycling, making it easier to offset carbon emissions and tracking environmental impact utilizing the blockchain’s transparency.
And Ecoterra is building an all-in-one application that does all three of these things and more.
Ecoterra rewards users with the platform’s native $ECOTERRA crypto token every time they recycle.
The green web3 start-up’s R2E app is supported in any country that uses Reverse Vending Machines (RVMs), meaning a huge potential market.
The platform features a carbon offset marketplace to make it easier for individuals and businesses to offset their carbon footprint.
Ecoterra also features a recycled materials marketplace to make it easier for businesses to purchase recycled goods using $ECOTERRA or other cryptocurrencies.
Meanwhile, thanks to the transparency of the blockchain, ecoterra allows individuals and businesses to track their environmentally friendly practices via an Impact Trackable Profile.
Observers predict this feature to be very popular amongst environmentally-conscious businesses, who can use Impact Trackable Profile to boost their brand image and bolster customer loyalty.
