Decentraland Unveils Credit Against Genesis: Should Investors Worry?

  • Decentraland provided clarification on its dealings with Genesis.
  • The MANA price continued to rise, but the metrics were bearish.

decentraland [MANA] recently revealed its position on the ongoing Genesis episode, bringing clarity to investors and users of the network. According to an official tweet on January 21, the Decentraland Foundation had a claim of around $7.8 million against Genesis.

Read decentraland’s [MANA] price prediction 2023-24

However, Decentraland clarified that the amount of the credit did not represent a substantial part of the Foundation’s treasury. After Genesis was accused of illegal cryptocurrency trading by the United States Securities and Exchange Commission (SEC), many believed that this would be the next domino to fall after the big FTX crash a few months ago.

Also, the members of the Decentraland DAO, whose members were part of the Decentraland community, had no relationship with Genesis. However, in a shocking turn of events, the tweet exposed that any mention of the Decentraland Foundation or its officials in reports about the Genesis crisis, which conflicted with the content of the statement, was false.

Decentraland’s position is clear

Fortunately, the Genesis episode did not seem to affect MANNAthe price of , as it continued to rise. CoinMarketCaps data revealed that MANA posted more than 15% daily gains and was trading at $0.735 at the time of writing with a market capitalization of more than $1.5 billion.

Source: CoinMarketCap

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Here’s the bad news

Time MANNAThe price of was rising, on-chain metrics told a different story. For example, the MVRV ratio of MANA decreased over the last week. Development activity also followed the same path and fell, which is a negative sign for a network.

CryptoQuant data revealed that MANA’s foreign exchange reserve was rising, suggesting further selling pressure. Not only that, but MANA’s Relative Strength Index (RSI) and Stochastic were both in overbought positions, which could further add to the selling pressure and cause the price to drop soon.

Decentraland MANA 11.10.14 21 Jan 2023

Source: Feeling

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