The Facebook Rebranding Will Drive the Rise of Altcoins Including Ethereum (ETH) and Solana (SOL)

The Facebook Rebranding Will Drive the Rise of Altcoins Including Ethereum (ETH) and Solana (SOL)

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Mark Zuckerberg announced the renaming of Facebook Inc. in Meta and hinted at the creation of a large universal platform.

Analysts believe that Zuckerberg’s plans for the development of the metaverse will have a positive impact on the cryptocurrency industry. Rebranding itself is one of the most popular anti-crisis PR techniques. Zuckerberg has used it several times when it comes to Facebook’s own cryptocurrency. Initially, such a coin was supposed to bear the uncomplicated name of Facebook Coin. When it turned out that the concept of this currency did not attract approval, the name was changed to Libra with the Calibra wallet.

It was two years ago. The US authorities became worried and suggested to Zuckerberg to postpone development while regulators decide how they interact with the cryptocurrency market. Zuckerberg had to testify in the US Congress and he agreed to postpone the release of his stablecoin. After this difficult interrogation, the Libra Association, created to back the cryptocurrency, began to fall apart. And in the end, Mark decided to make another rebranding. Now he called his cryptocurrency Diem and the wallet as Novi. According to Zuckerberg, this helps keep the idea of ​​cryptocurrency alive. The rebranding of the company itself should also help get rid of the negativity after scandals with the sale of the social network users’ personal data and some others.

In announcing the new name, Mark Zuckerberg also mentioned that the metaverse platform that is being created will support cryptocurrencies and non-fungible tokens (NFT). Experts conclude from this, that blockchains will be integrated into the platform and that smart contracts will also become part of the metaverse. Thus, Facebook’s transformation will benefit existing smart contract platforms such as Ethereum and Solana. However, it is highly likely that Meta will develop its own platform for smart contracts, and then it will be in direct competition with existing platforms.

With a user base exceeding 3 billion people, Meta will easily beat the competition. However, experts do not recognize in advance the victory of Mark Zuckerberg in the cryptocurrency market. Mark is very sensitive to the advice of government agencies and will not take bold steps. So far, cryptocurrencies, which have positioned themselves as developing metaverses, have grown fast.

It’s about Sandbox (SAND), Illuvium (ILV), Dvision Network (DVI), Axie Infinity Shard (AXS). The largest growth has been demonstrated by the project, which creates its own economy named Decentraland (MANA). This is where users can monetize created content and apps. The MANA token rose 400% in a couple of days, from $0.82 to $4.14, but later corrected to a price of about $2.8. The cryptocurrency is now ranked 40th in terms of capitalization.