Analysts are warning that Decentraland’s $MANA token could be headed to zero following the US Security and Exchange Commission (SEC) labeling it as an unregistered security. The token’s price has already tumbled, last trading in the mid-$0.34s, down 25% for the month and 94% from its 2021 highs of $4.95.
Since the value of $MANA is directly related to the usage and adoption of Decentraland’s metaverse, the SEC’s labeling of it as a security could further dampen activity and send $MANA back to zero. According to DappRadar, only 2,650 unique wallets interacted with Decentraland’s smart contracts in the last 30 days.
To fund Decentraland’s development, a token presale was conducted in 2017 that raised $25.5 million, which the SEC may view as an unregistered security sale. Early investors, however, profited as $MANA tokens increased from the presale price of $0.028 to over 12x, despite the significant retracement since its 2021 highs.
In contrast, a new green crypto project called Ecoterra is experiencing great success. The project’s presale of its native $ECOTERRA token has surpassed the $5 million mark and is continuing to grow, with users now able to try out a demo version of the platform’s Recycle-to-Earn (R2E) system.
Ecoterra’s platform is designed to encourage recycling, facilitate trade in recycled materials, and offset carbon footprints. It rewards users with the platform’s native $ECOTERRA crypto token every time they recycle. The blockchain’s transparency also allows individuals and businesses to track their environmentally friendly practices via an Impact Trackable Profile.
As blockchain technology holds an unprecedented ability to promote environmentally friendly behaviors, projects like Ecoterra are expected to play an increasingly important role in global efforts to address climate change in the decades ahead.
