Decentraland [MANA] recently informed investors and users what its position is on the ongoing Genesis episode. On January 21, an official tweet said that the Decentraland Foundation had about $7.8 million in credit against Genesis. The revelations of recent metaverse news has shocked investors.
Decentraland made it clear, though, that the amount of the credit was not a big part of the Foundation’s funds. After the Securities and Exchange Commission (SEC) said that Genesis was trading cryptocurrency in a way that was against the law, many people thought that this would be the next big company to fail after FTX.
Also, people who were part of the Decentraland community and who were part of the Decentraland DAO had nothing to do with Genesis. In an unexpected change, the tweet said that any reports about the Genesis crisis that talked about the Decentraland Foundation or its officers but didn’t agree with what was in the release were false.
Decentraland has a clear point of view
The Genesis episode didn’t have any effect on MANA’s price, which kept going up. According to data from CoinMarketCap, MANA gained more than 15% per day. At the time of writing, it was trading at $0.735 and had a market capitalization of more than $1.5 billion.
Is MANA reallyrising?
Even though the price of MANA was steadily rising, on-chain metrics showed a different story. For example, MANA’s MVRV Ratio has dropped in the last week. The amount of work done on development stayed the same and fell down, which is a bad sign for a network.
Data from CryptoQuant showed that MANA’s exchange reserve was growing, which meant that there was more pressure to sell. Also, both the Relative Strength Index (RSI) and the Stochastic for MANA were overbought, which could lead to more selling pressure and a price drop in the near future.
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