What happened
On the surface, what happens with cryptocurrencies the sandbox (SAND 2.26%) it has very little to do with corporate entertainment events. However, a recent move at the TV and movie giant walt disney (DIS -0.84%) helped boost the price of the cryptocurrency on Tuesday. By late afternoon, The Sandox had gained almost 6% in value over the previous 24 hours.
So what
An article published Tuesday morning in The Wall Street Journal said Disney's current round of layoffs includes the unit responsible for developing metaverse strategies. Citing unnamed "people familiar with the situation," the financial newspaper wrote that metaverse employees are among about 7,000 Disney workers being given pink slips.
Like many other metaverse efforts, The Mouse seems to have borne little to no fruit. This might have been noticeable at a company like Disney, which prides itself on leveraging the latest technology to enhance movies, theme park rides, consumer goods, and the many other items and experiences it sells.
Investors clearly see Disney cheat sheets benefiting metaverse coins and tokens, and The Sandbox is one of the standout titles in this bunch. According to data compiled by CoinMarketCap.com, The Sandbox's nearly $918 million market capitalization is the seventh-highest among names in the metaverse.
Now what
Compounding this is the generally favorable environment for cryptocurrencies right now.
Recent failures in the banking sector have strengthened the case for assets that are not tied to the traditional centralized national/global financial system. Furthermore, increased regulatory scrutiny has, somewhat surprisingly, made cryptocurrencies more attractive. Potentially increased oversight appears to be boosting confidence in these investments.
Eric Volkman has positions at Walt Disney. The Motley Fool has positions and recommends Walt Disney. The Motley Fool recommends the following options: $145 long calls in January 2024 at Walt Disney and $155 short calls in January 2024 at Walt Disney. The Motley Fool has a disclosure policy.
