The projects based on metaverses such as AXS, SAND, and MANA feel like traditional gaming platforms with just real–estatemechanics in addition to it.
Although they have the capability to generate billions in revenue, the projects appear to be unsustainable. Meanwhile, doubts and uncertainties about Metaverse are lately running to the limelight!
Metaverse is Just A Hype? Know The Reasons Behind Their Unsustainability!
Most Play-to-Earn is unstable. For instance, we can consider the example of top-notch gaming crypto Axie Infinity. The platform has taken a number of initiatives to boost its price action in the second half of 2021.
Followed by the launch of its staking pool and additional gaming features in September. AXS price has gained over 100% jump from $50 to $150 in November.
In the same time frame, Facebook rebranded to Meta when AXS price was trading at its all-time high. The profits of AXS streamed to MANA and SAND as the token was exhausted with its rally.
This move signifies that people might just try it out for hype or just to earn benefits from any upgrades.
But soon they get bored they will shift their bags to another project, thus making the investment. Hence, the investment made in building land and creating the experience will become worthless.
Why MANA And SAND Would Lose Their Gains?
It is clear from the above discussion that despite the Meta hype AXS failed to gain traction in December. Further, Axie has limited their staking rewards by more than 20%. Hence traders are now required to put in some extra efforts and time to earn the same rewards.
If MANA and SAND follow the same path, then investors will probably have to pay extra money to acquire $10 per day. But as more players continue to join the game, the rewards users will earn will not be even $1 per day netting a massive loss for the time and amount expended.
Collectively, the metaverse appears to be in jeopardy as US inflation is all set to hit the markets in the next couple of months. If US Fed tapers interest rate hikes, then crypto influencers may create NFT collectibles and sell them to compensate the losses.
But 70% of the investors will be at a huge loss. If the aforementioned projects continuously involve themselves in new innovations, then they can create great value in Q1 2022.