If you have been paying close attention to the markets, you would quickly realize that MANA coin was on a tear yesterday. While Bitcoin was hitting new heights almost by the hour, MANA coin was one of the few coins being pumped while the majority of altcoins were down.
Of course from FOMO everyone's selling their altcoins and rushing into Bitcoin to ride the wave and sure enough, it was hitting the moon. Meanwhile, MANA coin by Decentraland was also rising so that caught my attention. After doing some research I realized that it is in essence a replica of "Second Life". What makes it "decentralized?" Who knows? From reading the whitepaper, I wasn't able to gain any insight as to how this differs from Second Life. It boasts that users can "create" their own products or services, well Second Life offers that as well. Is this "virtual" land decentralized? Honestly, I can't tell you that they are because that information is simply not given to us.
They've recently announced that the this virtual universe at Genesis City and is ready for auction, in another words progress is being made and this is now one step closer to reality. People saw it as a positive step and jumped onto the train to pumped the price up. Look at the chart above, it went above 400% in a matter of two days!
I jumped on it too, although not even believing the fundamentals of the business. Of course, I also sold it all as well and made a good handsome return.
However, that doesn't change a few things:
- Fundamentals of Decentraland is still shaky
- Distribution and the reality of how "decentraland" is going to be seen is still very uncertain
- The wow factor for this coin is still unseen
- How this coin differs then Second Life is not "explained" or simply has none
- How this project is "decentralized" is unproven
After the recent price pump, the price of MANA almost went back close to the original price prior to the pump. What's the lesson learned ? It proves that you don't really have to know WTF the project is sometimes if you ride the wave with the big boys and drop it after profit. However, this should not be mixed in with the type of coins you want to hold long term. The ones you hold should have strong fundamentals and not a "vision".
There are many people with "visions" out there, but not many can make it a reality. However, that doesn't mean you can't make money in between as a trader.
Your fellow Crypto-Knight,
- mastaz