The future of Decentraland’s $MANA token appears to be hanging in the balance as the US Security and Exchange Commission (SEC) labels it as an unregistered security. This comes after dual lawsuits were announced against Coinbase and Binance, contributing to the recent decline in the token’s value. With $MANA experiencing a 25% decrease in the past month, skeptics worry that the token could be on its way down to zero.
The value of $MANA is directly connected to the usage and adoption of Decentraland’s metaverse. However, recent data from DappRadar indicates that only 2,650 unique wallets have interacted with Decentraland’s smart contracts in the last 30 days. This raises concerns that the SEC’s decision to label $MANA as a security could deter potential users and investors, leading to decreased activity on the platform.
At the core of the issue is whether Decentraland’s $MANA can be classified as a security. The platform had raised $25.5 million in 2017 through a token presale of $MANA, which the SEC is likely to consider an unregistered security sale. This is because investors at the time arguably expected profit from the Decentraland team’s efforts to deliver on their project roadmap. Those early investors indeed profited, with cryptorank.com reporting a 12x return for those who got in at the presale price of $0.028.
Meanwhile, a new green crypto project named Ecoterra is gaining momentum. The project aims to build an all-in-one web3 ecosystem powered by the $ECOTERRA token to promote recycling, facilitate trade in recycled materials, and encourage carbon footprint offsetting. The response to its presale has been overwhelmingly positive, with sales surpassing $5 million—an indication of strong investor support.
Ecoterra’s platform will reward users with its native $ECOTERRA token for recycling. It will also provide users with a carbon offset marketplace and facilitate transactions in recycled materials using $ECOTERRA or other cryptocurrencies. The platform’s transparency, made possible by blockchain technology, will allow individuals and businesses to track their environmental practices through an Impact Trackable Profile. This is expected to be particularly attractive to eco-conscious businesses for brand enhancement and customer loyalty.
As the debate surrounding $MANA continues, the success of ecoterra’s presale highlights the opportunities that lie in innovative platforms offering environmentally friendly solutions. Amidst the uncertainty surrounding Decentraland’s future, it is crucial for the crypto community to carefully consider the potential implications of SEC rulings and differentiate between projects with real-world impact and those that may not withstand regulatory scrutiny.
Source: Cryptonews
