The Metaverse is Misunderstood

There was a point in late 2021 when what’s referred to as the metaverse was driving a lot of online discussions and affecting cryptocurrencies. This was around the time that Facebook (the parent company of the social media platform, rather than the social media platform itself) renamed itself Meta, and indicated that it would be focusing on metaverse development.

Crypto products related to the metaverse received an immediate but temporary boost, including tokens such as SAND and MANA, which connect to metaverse projects The Sandbox and Decentraland, respectively.

NFTs representing land and other assets in metaverse projects also, for a while, gained in value, and it became commonplace for new NFT collections to include imprecise references to metaverse ambitions in their project roadmaps.

Since then, mainstream interest in the metaverse has cooled off, and the prices of metaverse-related assets, both fungible
Fungible

Fungibility is a term that describes how interchangeable a certain asset is with other assets of the same kind.If an asset is fungible, one unit of that asset is interchangeable with another unit of that asset. Of note, fungibility differs from liquidity. A good is said to be liquid if it can be easily exchanged for money or another good. However, a good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time and place.By this analog, money is considered to be fungible. For example, one $20 banknote is interchangeable with any other authentic banknote like it.It is also interchangeable with two $10 banknotes, or twenty $1 banknotes, or any other combination of banknotes and coins adding up to $20. Fungible Versus LiquidSimilarly, different issues of a government bond are also fungible, which may have been issued at different times. This is only if these issues carry precisely the same rights and any of them is equally acceptable in settlement of a trade.Fungibility does not imply liquidity, and vice versa. Certain commodities such as diamonds for example can be readily bought and sold. However, while the trade is liquid, individual diamonds are unique and not interchangeable. Cryptocurrencies are often considered to be fungible assets, as one coin is…