Decentraland is Going to Zero as the SEC Says MANA is a Security but This New Sustainable Crypto Could Be the Next Crypto to Explode – Here's How it Works
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.
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
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