There are plenty of cheap, fast-moving cryptocurrencies out there, but none of them are quite like Decentraland (CCC:MANA-USD). If you’re serious about investing in the metaverse’s future, then this platform should definitely be on your radar.
Even stodgy big-bank commentators are finally acknowledging the critical connection between the blockchain and metaverse. For instance, Goldman Sachs analysts led by Rod Hall asserted that blockchain technology is central to the development of the metaverse and is the only technology that can “uniquely identify any virtual object independent of a central authority.”
Naturally, the blockchain-metaverse connection opens the door to intriguing projects and cryptocurrencies like Decentraland. As we’ll see, this particular platform and currency could unlock entire virtual worlds, along with substantial profits.
So, maybe it’s time to consider a hidden gem in the crypto markets with a metaverse connection. Let’s see if Decentraland passes inspection.
Analyzing the Decentraland Price
Like many other cryptocurrencies, MANA rallied furiously in late 2021. If a rising tide lifts all boats, then this boat sailed to unbelievable heights.
Throughout most of October 2021, MANA was trudging along at around 75 cents. The next thing you know, the price jumped to $3 in late October, and then to $5.50 around Thanksgiving.
I’ve said it before with stocks, and I’ll say it now with cryptocurrencies. If you chase them after a vertical price run-up, you could end up losing your shirt. As it turned out, folks who bought Decentraland near $5.50 lost their shirts and then got taken to the cleaners. As of Jan. 11, the token’s price has fallen to about $2.85.
It’s difficult to establish reliable support and resistance levels with MANA, as it’s a volatile asset that’s constantly venturing into unprecedented price areas. For the time being, it’s a sensible strategy to accumulate a small position, then buy a little bit more if the price goes down to between $2 and $1.75.
Staking Real Estate in the Metaverse
It’s a novel concept: investing in parts of a virtual world. Not everyone will be on board with this concept, as it doesn’t involve tangible property. For audacious investors, however, Decentraland is not only a cryptocurrency, but also a virtual reality platform worth looking into.
The project’s white paper explains it as a place where “users can create, experience, and monetize content and applications.” There, users can “claim ownership of virtual land on a blockchain-based ledger of parcels.”
Decentraland is a traversable 3D world that’s truly decentralized. In other words, it’s not controlled by a central organization — that’s part of what makes the metaverse so appealing, really.
This doesn’t mean that there aren’t rules, though. There’s a currency economy based on the MANA token. The crypto is primarily used to buy “in-world” goods and services, but it serves other purposes as well.
An Electronics Giant Gets Involved
If all of this sounds interesting to you, I’ve got some great news to share. Apparently, Samsung Electronics (OTCMKTS:SSNLF) segment Samsung Electronics America has partnered with Decentraland to open the virtual Samsung 837X store.
That’s right: Samsung is opening a non-physical store within a virtual reality platform. It will only be there for a limited time, however.
Still, this marks a momentous event in the timeline of the metaverse. “This is one of the largest brand land takeovers in the history of Decentraland,” Samsung observed.
What will shoppers be able to buy in this virtual world? Reportedly, “the Samsung 837X store will offer digital adventures through ‘Connectivity Theater and Sustainability Forest’ and a musical celebration at the ‘Customization Stage.'”
There’s also a real-world analogue to the 837X store, by the way — a physical store, located at 837 Washington Street in New York City.
The Bottom Line on Decentraland
There’s a lot to absorb here, obviously. Not everyone will buy into the idea of non-tangible worlds, experiences and token economies. Thus, MANA is really an all-or-nothing type of investment. The underlying concept and technology could either become fully mainstream, or just a passing fad.
So, please tread lightly as an investor in Decentraland. Samsung’s endorsement is encouraging, sure, but only time will tell whether virtual real estate will have enduring value.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.