Major metaverse coin projects fell sharply this week as Facebook owner Meta Platforms hit a snag in their plans for a virtual world. Broader crypto market weakness has also put pressure on most tokens.
What caused the sharp losses in Metaverse coin projects? The largest metaverse coin projects fell between 15% and 26%, including
Decentraland (MANA), The Sandbox (SAND), Axie Infinity (AXS) and ApeCoin (APE). AXS was the worst-performing altcoin among its peers, and it also lost its place as the third-largest metaverse token as it tried to survive a $600 million hack.
Sensitivity towards space has been hit by a potential delay in Meta’s plans for a virtual world that could slow the amount of capital flowing into the metaverse space. Investors also seem to be collecting profits after a strong run in token prices in late March. Hence, broader weakness in the crypto market has also affected token losses.
Meta hits a snag in its metaverse move
Meta, which is claimed to be the biggest factor behind the popularity of the metaverse today, has hit a snag in its plans to build a virtual world. hit. US regulators ruled on Friday that the firm must give its shareholders the opportunity to vote on its metaverse plans. Specifically, the company will now have to vote on a shareholder proposal that examines Meta’s plans for a virtual world, citing potential psychological and human rights harms that may occur on the platform.
The proposal, announced in December, calls for third-party assessment of potential health and political risks from Meta’s planned online space. The activist investors group that supported the proposal pointed to Facebook’s history of hosting politically divisive content.
Although Meta initially tried to block the proposal, it will now be voted on at Meta’s annual shareholder meeting in May. The vote will allow shareholders to decide whether the tech giant’s plans for a metaverse are ‘prudent or appropriate’.
But while the meta is faltering in its raids, a few other firms are looking to take advantage of the rapidly expanding space. As we covered in the cryptokoin.com news, Singapore’s DBS Group was the latest in a growing number of lenders looking at a domain in the metaverse.
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