Metaverse is a phenomenon popularized by offering a digital economy and an immersive virtual environment, among other interactive features. This relatively new emerging field has gained a lot of momentum in recent years. In fact, estimates indicate that the total value of the metaverse field could reach $800 billion by 2023. The rise of the Metaverse has also affected the cryptocurrency space. Metaverse lands and metaverse coins for money appeared. This prompted regulators in the US.
The interest in the metaverse has brought warnings for metaverse coins.
Companies such as Meta (Facebook), Google, Microsoft, Nvidia, Nike; He works in the metaverse field. However, with this momentum comes massive scrutiny from financial regulators. Some metaverse projects sell land to their users for money before launching a live experience. Platforms like Big Time games sell land on their metaverse before opening access to the game. Typically, the United States Securities and Exchange Commission (SEC); It doesn’t take action other than hoarding individual investors without understanding exactly what they’re investing in.
The line of what is classified as a security is often blurred. According to some, Metaverse, the practice of selling land is generally considered a security under US law. GameFi platforms like Axie Infinity show the speed with which metaverse projects are spawning multi-billion dollar economies. According to experts, the large scale of such projects requires monetary policies. According to some, these projects should work in coordination with government regulators and follow the “customer recognition” procedure. Below you can see the number of active users showing the size of Axie Infinity:
Some metaverse coins caused material damage
Although no bodily harm could be inflicted on the Metaverse, it can already be said to have caused a great deal of material damage. Yuga Labs, behind their NFT projects Bored Apes Yacht Club, faced an attack this year after a community manager’s Discord was hacked. cryptocoin.com As we reported, hackers stole 200 Ethereum (ETH) worth of NFTs.
A number of Wall Street banks were recently fined $1.8 billion for using “banned” messaging apps. According to some experts, metaverse projects like Yuga Labs could face penalties for failing to implement secure financial and technical controls.
Metaverse investments need to be classified
According to experts, an important first step for any metaverse project is to consider what type of assets they are releasing. For example, is it a security? A utility token? Once the classification process is complete, the next step will be to develop a regulatory framework that can be applied to the metaverse. This; securities offerings, anti-money laundering and consumer protection rules. But, experts say, it’s important to strike a balance here – because too much regulation can hinder innovation and adoption.
On paper, any firm can exist outside of a proposed regulatory framework. That is, any country’s regulatory efforts will have limited impact. Huy Nguyen, co-founder of Kardia Chain, gives the following example and explains how it can be applied to the metaverse space:
For example, most of the social media platforms we use today, including Twitter and Facebook, are not headquartered in the United States. Instead, they operate in countries like Ireland and Singapore where data protection laws are much laxer. The same logic applies to the metaverse. Even if a country passes a law trying to regulate this area, it is doubtful that all businesses will agree to abide by it.
What are the metaverse coins in question?
According to Nguyen, the metaverse is ready to reshape our lives whether we want it or not. But it will be important for regulators to step up and take proactive steps to allow innovation to flourish without harming investors. So, what are the metaverse coins that stand out in the crypto money part of the metaverse? Below you can see some of the biggest metaverse coins by market cap.
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