- Microsoft has ended its metaverse project that was focused on industrial environments, just four months after its formation.
- The technology giant wants to prioritize shorter-term projects over those that take a long time to generate revenue.
- Metaverse tokens Internet Computer Protocol (ICP), The Sandbox (SAND) and Axie Infinity (AXS) nosedived amidst market-wide bloodbath.
Microsoft, an American multinational technology firm dashed hopes of metaverse’s utility in industrial projects and disbanded its 100 member unit. A source with direct knowledge of the issue said the technology giant is now focused on projects that can generate revenue in the short-term.
Also read: Crypto traders panic sell $4.7 billion USDC for fiat on Coinbase, here’s what this means
Microsoft disbands metaverse unit, dashes hopes of metaverse token holders
The technology giant recently laid off 100 people from its metaverse unit, since the project’s industrial application seems unviable and could take a long-time to generate revenue.
Since the news broke out, there has been a broad crypto market sell-off and metaverse tokens Internet Computer Protocol (ICP), The Sandbox (SAND) and Axie Infinity (AXS). Metaverse tokens in the top 10 yielded between 7.5% and 22.4% losses overnight.
Metaverse tokens
Why metaverse tokens could witness further decline
Meta’s earnings report release fueled a rally in metaverse tokens. Since then, several bullish developments in metaverse projects contributed to a bullish narrative. Earlier this week, on February 7, The Sandbox announced an MOU partnership ceremony between TheSandboxGame and the Saudi Arabia Digital Government Authority (DGA).
Despite bullish catalysts throughout the week, SAND, MANA and AXS prices have declined overnight with news of Microsoft’s metaverse unit disbandment. The giant first formed its metaverse core team in October, since then the unit engaged in building software interfaces that could be used to drive metaverse-related projects. Metaverse tokens could yield further losses for market participants holding these tokens in the long-term amidst bloodbath in the crypto market.
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