Rough Seas Make Strong Sailors
How the Market Correction Is Affecting the Metaverse | Realm Roundup May 19, 2022
It’s Never a Bad Time to Level Up Your Skills
We’re excited to announce Realm Academy’s July cohort is now open for enrollment.
Become an expert in the metaverse. Learn from professionals and industry trailblazers at top web3 companies and DAOs.
Coursework includes: introduction to blockchain technology, metaverse real estate principles, web3 business opportunities, and much more.
Market Update
A lot happened in the crypto market and the global economy last week:
The LUNA-TERRA ecosystem collapsed, creating chaos in the crypto and web3 markets.
A top NFT project fell from grace after its founder outed himself as the leader of past “rug pull” projects.
The price of ETH declined to levels it hasn’t seen since summer 2021.
The BAYC floor price has sunk over 50% from its high of $429,000 on April 29.
To top it all off, the Fed increased interest rates a half percentage point, its largest rate hike in 22 years.
That being said, we’ve never been more bullish on the metaverse. Some of the most important technologies have been created during bear markets.
Low quality projects will be shaken out. The killer apps and communities of the future will rise above.
Web3 guru Chris Dixon sums it up well:
Good for Gaming
We think economic volatility can boost metaverse adoption based on consumer behavior trends.
If we are in a sustained bear market, tourism and nonbusiness travel are likely to be among the first industries to see a pull back. Online gaming, and shared virtual experiences, seem to react positively.
While video games weren’t completely immune to the ‘08 financial crisis, ‘08 and ‘09 were still high-watermark years for the industry.
According to Statista, mobile game revenue is expected to see a CAGR of 8.74% between 2022-2026.
The video game industry as a whole grew 12% during the 2020 pandemic-fueled recession.
We’re becoming more accustomed to spending our time at home with friends and family, in virtual spaces, and we see little reason for that to slow down.
Land and Token Price Updates - Sunday May 15, 2022
Otherdeeds, the land in YugaLabs’ Otherside metaverse, traded at an average price of $13,296.72, down nearly 25% over the past 7 days.
LANDS in The Sandbox traded for an average price of $4,847.07, up over 18% from 7 days prior. Average land prices in Decentraland hit $9,094.55 on May 15, down 25% over the same period.
Decentraland’s MANA token traded for $1.34, down just 0.46% over the previous week. Meanwhile, The Sandbox’s SAND token dropped over 27% to $1.46 and ApeCoin dipped nearly 19% to $9.13 over the same period.
Read More in Our Monthly Metaverse Report
The April 2022 Metaverse Report is out now!
Inside you will find a review of the market conditions in April, provided by NonFungible, followed by an overview of the highly anticipated Treeverse platform.
View the report to stay up to date on this fast-moving space.
Around the Metaverse:
How K-Pop Group aespa Is Making the Metaverse Their Home | TIME
Taste the 'metaverse' in Coca-Cola's new pixel-flavored soda | KATV
NFT visionaries are doubling down on community ethos amid a bearish cycle
UST Collapse
The story du jour in crypto has been the LUNA-UST Collapse, which had big implications for crypto and web3 at large. Decrypt published an in-depth overview of the incident if you’d like to learn more.
A strong argument can be made that when done right, stablecoins are key to developing a robust metaverse ecosystem. It will be worth seeing how these technologies develop, but we still have a ways to go before a truly stable and sufficiently decentralized solution arises.
Sam Likes the Stock
Web3 billionaire and CEO of FTX Sam Bankman-Fried made headlines last week for his involvement in a massive purchase of shares of online stock brokerage Robinhood. Emergent Fidelity Technologies, a firm of which Bankman-Fried is the sole director and majority owner, executed the buy and owns the shares.
The purchase came out to 56.27 million shares, 7.6% of all shares outstanding, for a total of $648.29 million, a Section 13D filing with the Securities and Exchange Commission on Thursday revealed. This implies an average share price of $11.52.
It should be noted that unlike Elon Musk’s potential Twitter takeover, Bankman-Fried claims to have no plan to take control of the online brokerage.
Everyrealm’s Janine Yorio on Coinbase: Around The Block
Listen to Everyrealm Co-Founder and CEO Janine Yorio explain how she defines the metaverse, and how Everyrealm approaches investing in the metaverse from first principles.
Stay up to date by following our Twitter accounts for Everyrealm and Realm Academy, and by joining our Discord.
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Realm Metaverse Real Estate Inc., an affiliate of Everyrealm Inc., may own digital land or have another financial interest in the metaverses listed within this newsletter.
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All market prices in the above text are listed in USD.