Decentraland Shows Debt Against Genesis: Should Investors Be Worried?

  • Decentraland issued a clarification regarding its dealings with Genesis.
  • MANA’s value continued to rise but the metrics fell.

Decentraland (MANA) recently revealed its position on the Genesis series, to provide transparency to investors and users. According to an official tweet on January 21, the Decentraland Foundation had a debt of about $ 7.8 million against Genesis.

Read Decentraland Value Authority (MANA). 2023-24

However, Decentraland clarified that the amount of debt does not represent a large part of the Corporation’s budget. After Genesis was accused of illegal cryptocurrency trading by the Securities and Exchange Commission (SEC) of the United States, many believed that this would be the next domino to fall after the great collapse of the FTX a few months ago.

In addition, members of the Decentraland DAO, whose members are part of the Decentraland community, have no connection with Genesis. However, in a surprising turn of events, the tweet revealed any mention of the Decentraland Foundation or its officials in the reports about the Genesis crisis, which contradicts what is in the ad, it’s wrong.

The position of Decentraland is clear

Fortunately, what happened in Genesis seems to have been unaffected POWERprices, as they continue to increase. CoinMarketCap’s records MANA showed that it registered over 15% profit every day, and at the time of writing, it was trading at $ 0.735 with a market capitalization of more than $ 1.5 billion.

Source: CoinMarketCap

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This is the bad news

While POWERAs prices rose, the ratings on the chain told a different story. For example, MANA’s MVRV Ratio decreased last week. The developer also followed the same path and went down, which is a bad sign for a network.

CryptoQuant’s records indicates that MANA’s stock reserves have increased, indicating higher sales. In addition, MANA’s Relative Strength Index (RSI) and Stochastic were both in overvalued levels, which may increase the selling price and result in a rapid price drop.

Source: Santiment

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