With the renaming of Meta platforms, Facebook signaled its adoption of the Metaverse — immersive digital communities where users may work, play games, conduct e-commerce, and be socially engaged.
Many digital assets, including cryptocurrency, online gaming, and more, could profit from this. For example, an online gaming platform that uses non-fungible tokens (NFTs) as an in-game currency and collectible might be the winner. For many of those organizations, it was a “confirmation of their efforts,” said Mark Palmer, an analyst at BTI Group.
Virtual markets based on play-to-earn gaming models and NFTs might gain momentum in the future. As a result of Facebook’s transformation into Metaverse, crypto traders are looking for the benefits of this change.
This article will explore its impact on some major cryptos and explain how Meta is interested in cryptocurrency.
Rebranding of Facebook and the cryptocurrency market
A single digital wallet that works with all digital content, including cryptocurrency, is Meta’s goal in providing an immersive online experience. Despite its importance, it is being ignored.
Would all currencies in the Metaverse have to be converted to Diem to make purchases possible? Policymakers have not yet decided how to respond to it. Does the government even have authority over the Metaverse?
Various tokens improved with the name change
The Sandbox’s SAND, Wilder Worlds’ WILD, and Alien Worlds’ TLM tokens also rose, he says. In addition, Ethereum-based blockchains and side chains are popular. The Ethereum currency, ETH, might gain from this.
After Facebook changed its name, online crypto communities and their game tokens experienced a significant increase in popularity. Coinbase Global, the second-biggest crypto trading platform globally and the largest in the United States, is a long-term winner. In addition to its 68 million users, Coinbase has developed institutional services and an NFT platform.
The Bureau of Labor Statistics released the producer price index for October. An increase of 0.6 percent is predicted for September. Food and fuel costs are expected to rise by 0.4% in the core PPI. September saw rises of 0.5% and 0.2%, respectively, in these two categories.
October’s Small Business Optimism Index was released by the National Federation of Independent Business. Analysts expect a score of 98.5, which is slightly below the level from September.
Rivian, a manufacturer of electric trucks, is supposed to launch trading on the Nasdaq under RIVN. The com-backed startup is issuing 135 million shares at a price between $57 and $62. An estimated $53 billion is being placed on this Amazon.
The Bureau of Labor Statistics (BLS) publishes the October CPI. In September, the year-over-year growth rate was 5.4 percent, according to the consensus estimate. As a result, the core CPI is predicted to rise by 4.4%, above the previous month’s pace of 4.0% growth.
Impact on MANA
Currencies that let people purchase and sell virtual land have risen due to Facebook’s rebranding.
After Facebook announced that it was changing its name to Meta, the price of MANA increased 400 percent, reaching $4.16 on Saturday evening, according to statistics. Since then, the price has dropped to roughly $3.16.
According to Facebook’s rebranding strategy, the “metaverse,” a kind of shared virtual reality in which several users may interact with one other and digital objects, is now the company’s primary priority.
Founded in 2017, Decentraland is a self-proclaimed metaverse platform where users can purchase and sell virtual assets. MANA is the network’s native digital currency. It is powered by the Ethereum blockchain, which is the second-largest digital currency in the world.
Decentraland, an online community where users may build avatars of themselves and connect, is mentioned by Palmer. According to the company’s website, it’s “the first-ever virtual world owned by its consumers.”
Decentraland’s virtual properties may be purchased with MANA tokens, which rose by more than 300 percent after Meta’s announcement. More than $900,000 worth of virtual plots were sold on the site in the first half of the year. There is a new gallery for NFTs auctions at Sotheby’s in the Decentraland art area as well.
Vijay Ayyar (CEO of Asia-Pacific at cryptocurrency exchange Luno) said MANA and other metaverse-focused cryptocurrencies are moving up.
According to Ayyar, investors and speculators are seen as an endorsement of the Metaverse’s mainstream acceptance. Besides Axie Infinity and The Sandbox’s tokens, other cryptocurrencies have also experienced significant growth in the past couple of days.
Impact on Bitcoin
When investors lose interest in Bitcoin after it achieved a record high of about $67,000 last month, Luno’s Ayyar reports that they are turning to smaller alternative cryptocurrencies. When Bitcoin reaches an all-time high, “we see money flowing into other cryptocurrencies,” he added.
Impact on Shiba Inu
Shiba, a “meme token” that competes with Dogecoin, surged in value last week on reports that Robinhood could add the cryptocurrency to its trading system. With a current value of more than $39.6 billion, it has overtaken Dogecoin in popularity. However, Robinhood has yet to make a public statement on the matter.
Is Metaverse interested in the cryptocurrency market?
Aspiring to reach the same level of success as the Winklevoss twins, who founded the well-known Gemini crypto exchange, Meta is interested in the crypto space.
Early this month, Facebook launched a pilot experiment with Coinbase to give users in specific geographies access to its digital wallet, Novi. In addition, the soft launch of Pax dollars, a crypto stable coin, allows users to send and receive the coins quickly and safely, with no transaction fees.
As a result of strong criticism from central banks and regulators, Facebook’s plan to launch its crypto coin, Libra, in 2019 was scuttled.
The potential of Libra being used as a quasi-sovereign currency by central banks is a valid concern in undeveloped countries. Facebook has since removed Libra from its direct control or supervision.
Meta seems to have finally found its long-awaited answer and discreet entrance into the digital crypto market, although these and other issues may not have easy solutions. Nevertheless, this is probably Meta’s most essential and long-lasting change, for better or for worse.