This image from October 28, 2021 shows a smartphone with the Facebook logo in front of the new Meta Facebook rebranding logo.
Dado Ruvic | Reuters
Mana, a little-known cryptocurrency used to buy and sell virtual land, rose in price over the weekend amid the excitement over Facebook's rebranding.
Mana price hit an all-time high of $ 4.16 on Saturday night, according to CoinMarketCap data, a 400% increase from trade value shortly after Facebook announced it would change its name to Meta. It has fallen since then, and most recently changed hands at around $ 3.16.
The rebranding of Facebook aimed to shift the focus of the competitive social media company to the “metaverse”, a kind of shared virtual reality in which multiple users can interact with each other and with digital objects.
Introduced in 2017, Mana is the native digital token of Decentraland, a self-proclaimed Metaverse platform that allows users to buy and sell virtual real estate. Ownership of the land is acquired through non-fungible tokens, a type of digital asset designed to keep track of who owns what. It runs on Ethereum, the blockchain network behind Ether, the second largest digital currency in the world.
Vijay Ayyar, head of Asia-Pacific at the Luno cryptocurrency exchange, said Mana and other metaverse-focused cryptocurrencies would rebound as Facebook was renamed, which is seen as a sign of growing acceptance of the metaverse trend.
"I have read it as an interpretation of a vote of confidence by both speculators and investors that this concept of a metaverse is now taking a serious turn in terms of reaching mainstream consciousness and – soon – adoption," Ayyar said.
Other cryptocurrencies, including the tokens from the blockchain-based games Axie Infinity and The Sandbox, have also seen solid gains in recent days.
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Investors are looking to smaller alternative cryptocurrencies, or "altcoins," as interest in Bitcoin waned after the world's largest digital coin hit a record high of nearly $ 67,000 last month, according to Luno's Ayyar.
"When bitcoin hits an all-time high, we usually see money pouring into other altcoins," he said.
Last week, Shiba Inu – a "meme token" challenging Dogecoin – rallied sharply amid speculation over whether Robinhood could add the coin to its trading platform. With a market cap of more than $ 39.6 billion, it is now ahead of Dogecoin. So far, Robinhood has not publicly stated whether it will support Shiba Inu.