Metaverse tokens have been particularly popular in recent months as investors seek out new ways to invest in the burgeoning metaverse economy. As the world becomes more and more digital, people are spending more and more time in virtual realities. The metaverse is a virtual world created by the convergence of all online communities and technologies. It is a place where people can interact with each other and with digital objects in a virtual space.
However, top metaverse tokens have come under pressure this week after Facebook’s owner, Meta Platforms Inc (NASDAQ:FB), the company that is responsible for the popularization of the metaverse, ran into a legal hurdle with regulators over its plans for a virtual world.
The U.S. Securities and Exchange Commission (SEC) ruled on Friday that Meta must hold a shareholder vote on a proposal that calls into question the social network’s “license to operate an emerging technology like the metaverse.”
Meta initially tried to stop the proposal which calls for a third-party assessment of potential psychological, civil and human rights risks from Meta’s planned virtual space. However, the company now says that the proposal will be voted on at its annual shareholder meeting in May. The vote will let shareholders decide if it is ”prudent or appropriate” for Meta to build a virtual world.
As expected, the value of top metaverse tokens including Decentraland (MANA) and The Sandbox (SAND) took a sharp dive following the Meta news, with prices dropping 16.3% and 17.3% respectively. ApeCoin’s (APE) price was also badly impacted with a 16% decline. However, Axie Infinity (AXS), which is still struggling to recover from last month’s $600 million hack, was the worst performer of the group, tanking 25%.
After the nosedive, the asset managed to halt the downtrend basing above the $50.00 area. It later initiated a reasonable uptrend toward and above the $52.00 level to only retrace back to the $51.00 zone where it is currently trading. A dip below the immediate $50.00 psychological support area remains highly probable.
It will be interesting to see how the top metaverse tokens react in the coming days and weeks as new developments unfold.
In the meantime, as meta loses some momentum in its virtual forays, major brands from a variety of industries including Nike (NKE), Heineken and Disney (DIS) are locked in a race to develop successful marketing strategies for this rapidly growing virtual world. At stake is the increasing number of people flocking into virtual worlds and the billions of dollars of commerce that flow through metaverse communities every day.
Recent data suggest the global metaverse market was worth almost $39 billion in 2021. By the end of this year, this is projected to increase to $47.5 billion, before jumping to a whopping $679 billion by 2030.
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