Former White House communications director and venture investor Anthony Scaramucci recently came out and said, “Sam Bankman-Fried really hurt the industry.”

Sam Bankman-Fried’s FTX once used to be the second biggest cryptocurrency exchange by market capitalization.

The exchange wasn’t only marketed by multiple A-list celebrities – including basketball player Shaq O’Neal, but the larger community also trusted it as being one of the best exchanges to offer a derivatives trading facility.But the appreciation does not end there.

Many considered Sam Bankman-Fried himself as one of the good samaritans of the crypto space. His approach, named “effective altruism,” was lauded by many in the industry.However, that appreciation turned into an insult after it came to light that most of FTX’s capital was being fuelled by the native token – FTT. And when it became apparent that the company was misusing users’ assets, the crypto winter that started in the middle of last year was prolonged once again .

One of the main reasons that Sam Bankman Fried got as much traction as he did was because of his approach to rallying people for crypto. In the mid-term elections last year, it was reported that he donated over $40 million to politicians.Sam’s influence in America’s political sector was not limited to donations. Gary Gensler, the SEC Chief who has now become one of the biggest skeptics of crypto – roadblocking any chance of the crypto economy to thrive – was once a friend of the now-jailed FTX CEO.

So, when the FTX situation happened in 2022, these meetings proved to be embarrassing.Citing these incidents, Anthony Scaramucci says, “He embarrassed the politicians; he gave a lot of money to them”.

These statements came from the recent Collision 2023 conference event in Toronto.Scaramucci continued that these misdeeds have created a situation that “now the pendulum has swung too far to over-regulation in this ridiculous procesutorial oversight.

”Over-Regulating Has Been SEC’s Approach So FarThe crypto community learned from the unsealed Hinman documents that SEC’s stance regarding crypto was far different than it is now. While there was some regulatory skepticism, the organization was open to new ideas.

However, the arrival of crypto winter in the middle of 2022, led by the fall of LUNA, and the further exacerbation of the situation by the FTX’s downfall led many regulatory authorities up in arms against the current crypto economy.SEC, the Securities and Exchange Commission, seems to be leading the charge in this situation. Recently, it marked over 60 cryptocurrencies, including Solana, Polygon, and Matic, as securities. That move resulted in many exchanges and trading firms, such as Revolt, dropping support for these assets.

It has also taken a tough stance against Binance and Coinbase, which could have larger long-term implications.This overcorrection to cover up the mistakes of the past has irked many crypto enthusiasts and some regulatory institutions. All the comments on the tweets by SEC – whether or not they are related to crypto – are facing backlash from the crypto community.

In its most recent tweet, SEC said that it is charging Oregon residents Robert D Christensen and Anthony M. Matic for conducting a multi-year Ponzi-like scene and misleading investors.

#Crypto_Angel

In November 2021, the world of cryptocurrency was abuzz with excitement as the cumulative market capitalization of the "big four" metaverse projects reached a staggering $16 billion. The Metaverse, GameFi, and Play-to-Earn were the hottest buzzwords in the crypto space at that time. Fast forward to September 2023, and the scene has dramatically changed. A whopping 92% decline has sent shockwaves through the industry, leaving investors in disbelief.

The Rise and Fall of the "Big Four" Metaverse Tokens

At the peak of the 2021 crypto market rally, The Sandbox (SAND), Axie Infinity (AXS), Enjin Coin (ENJ), and Decentraland (MANA) were hailed as the dominant forces in the Metaverse and GameFi sector. Together, they represented 0.5% of the $3 trillion global cryptocurrency market cap.

However, as the crypto winter set in, these projects faced mounting criticism. Concerns ranged from security and privacy issues to governance problems and a lack of long-term incentives for holding tokens. As of September 2023, the combined market capitalization of SAND, AXS, ENJ, and MANA has dwindled to a mere $1.23 billion, marking a staggering 92% decline from their peak.

To put this decline into perspective, the market dominance of these four Metaverse tokens now accounts for just 0.12% of the global crypto market cap. It's a clear indicator that crypto investors have shifted their focus away from the metaverse sector in the past two years, seeking more promising opportunities elsewhere.

Majority of Metaverse Investors Left in the Red

Investors who bought into the Metaverse hype in 2021 are now grappling with losses. Historical data reveals that most ENJ, MANA, AXS, and SAND holders find themselves in the red.

Among these, Axie Infinity and The Sandbox token holders are facing the toughest losses. For Axie Infinity, once known for its robust in-game economy, a staggering 99.54% of all AXS holders are currently "out of the money."

The Sandbox project, a virtual world where gamers can build, own, and monetize their experiences, isn't faring much better. An overwhelming 98.34% of those who invested in SAND now find themselves in a similar predicament.

Decentraland and Enjin Coin investors are also dealing with significant losses. Decentraland, known for its vibrant virtual marketplace, sees 89.04% of its investors in the negative territory. Meanwhile, Enjin Coin, facilitating virtual goods management on the Ethereum blockchain, has 75.5% of its investors in a deficit position.

Slim Hope for a Rebound

The cumulative market cap of ENJ, MANA, AXS, and SAND has plummeted by 92% from its peak of $16 billion in November 2021 to just $1.23 billion in September 2023. This decline also highlights a nearly 76% reduction in metaverse tokens' dominance within the crypto industry.

While Apple's Vision Pro launch and Mark Zuckerberg's optimistic statements triggered a brief resurgence in the Metaverse sector in July 2023, this momentum appears to be fading rapidly. Lingering concerns over security, utility, and player retention are still prevalent. However, the recent lawsuit from the United States Securities and Exchange Commission (SEC) has only exacerbated the Metaverse's troubles.

In June 2023, the SEC filed lawsuits against major crypto exchanges, Binance and Coinbase, listing The Sandbox, Axie Infinity, and Decentraland as "securities." This move led to significant drops in the prices of SAND, AXS, and MANA.

In conclusion, the sentiment surrounding the metaverse has turned overwhelmingly bearish. Yet, this downturn may present strategic investors with an opportunity to buy the dip in anticipation of a potential resurgence in the future. The metaverse rollercoaster ride continues, and only time will tell if it's a brief setback or a more lasting downturn.

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