Web3 rises: Metaverse Token rises when Meta’s share price falls

Decentralized Metaverse tokens have posted steady gains this week despite a sharp drop in Meta Platforms stock price.

Meta Platforms, Facebook’s parent company, saw its largest single-day drop in market value in American corporate history. Shares fell 26% on Thursday after the tech giant announced disappointing earnings and a drop in daily active users.

Meta changed its name from Facebook in late 2021 to signal its plans to focus on Metaverse. The event coincided with double-digit gains at decentralized competitors Sandbox and Decentraland.

Meta reported total revenue of $33.67 billion for the fourth quarter of 2021, up slightly from $28 billion a year earlier. However, net income fell to $10.28 billion compared to $11.2 billion 12 months ago.

According to the earnings report, Meta suffered heavy losses for the first time with its development business, virtual reality and augmented reality research segment, Reality Labs. It has lost more than $10 billion, down from a $6.6 billion loss in 2020. However, it is only in the early stages of laying the foundations for Metaverse technology, including the development of the glove. tactile hands that allow the user to “touch” entities in the metaverse.

Animoca Brands President and Co-Founder Yat Siu suggested that the sharp drop in the price of Meta stock could represent a broader trend in which users are beginning to be skeptical about the centralized Web2 model.

“It’s a system that has no network ownership or value issues, which will ultimately lead to its decline as users look for better options.”

“Since people still prefer to spend a lot of their time online, the question arises where and how? This is an early sign that they are moving away from Web 2.0 and towards Web 3,” he added.

Siu argues that Web2 companies like Meta and Apple are also putting brains in the hands of Web3 companies and projects.

“Web 3 and the Metaverse space isn’t just a product cycle, it’s a new movement that’s hard to resist.”

Token metaverse

Decentraland, the Metaverse platform built on Ethereum, has seen the price of MANA token surge by more than 20% over the past seven days, from a low of $2.19 to recent support around $2.6.

MANA price chart | Source: TradingView

Similarly, The Sandbox’s SAND token, one of Decentraland’s Metaverse competitors, has seen a 17.5% surge in seven days, from a weekend low of $3.31 to a higher high of $4 and is currently finding support in the $3.6 area.

SAND price chart | Source: TradingView

Aside from meta, other factors are also impacting the price of MANA and SAND this week. Decentraland published the Manifesto 2022, announced on mobile app prototypes, improved experiences, better NFT extensions, and protocol improvements.

The sandbox development team also announced a partnership with UniX Gaming, a decentralized autonomous organization (DAO), and the release of more “land” in their Metaverse, scheduled for February 10th.

Animoca Brands is the company that owns The Sandbox. There were rumor Earlier this week it was not confirmed that Meta would acquire the Metaverse platform. However, Siu quickly refuted those rumors on February 3.

In addition to Meta, other big tech companies like Apple and Microsoft are also entering the field. Entertainment giant Disney also appears to be preparing for a move to Metaverse with the post recruitment Business Development Manager, looking for a team “to lead Disney’s efforts in the NFT space”.

It’s not yet clear if Disney’s efforts are related to the planned headset-less augmented reality Metaverse project. Disney had previously published a patent on this project.

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