What happened
On the surface, what happens with cryptocurrency The Sandbox (CRYPTO: SAND) has very little to do with events in corporate entertainment. Yet a recent move at TV and movie giant Walt Disney (NYSE: DIS) helped juice the price of the cryptocurrency on Tuesday. As of late afternoon, The Sandox had gained nearly 6% in value over the preceding 24 hours.
So what
An article published Tuesday morning in The Wall Street Journal said that included among Disney’s current round of layoffs is the unit responsible for developing metaverse strategies. Citing unnamed “people familiar with the situation,” the financial newspaper wrote that the metaverse employees are among the roughly 7,000 Disney workers who are being given pink slips.
Like many other metaverse efforts, it seems The Mouse’s bore little or no fruit. This might have been conspicuous in a company like Disney, which prides itself on harnessing the latest technology to enhance films, theme park rides, consumer goods, and many other items and experiences it sells.
Investors clearly see the Disney chops as benefiting metaverse coins and tokens, and The Sandbox is one of the more prominent titles in this group. According to data compiled by CoinMarketCap.com, The Sandbox’s nearly $918 million market capitalization is the seventh-highest among metaverse names.
Now what
Compounding this is the generally favorable environment for cryptocurrencies at the moment.
The recent failures in the banking sector have bolstered the case for assets that aren’t tied to the traditional, centralized national/global financial system. Additionally, increased regulatory scrutiny has — somewhat surprisingly — made cryptocurrencies more attractive. Potentially greater oversight, it seems, is boosting confidence and trust in these investments.
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Eric Volkman has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
