CoinDesk Stirs Controversy in Report on The Sandbox and Decentraland User Numbers

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On October 7th, A CoinDesk article headlined ‘It’s Lonely in the Metaverse’ reported that popular metaverse and blockchain gaming platforms The Sandbox and Decentraland have been recording less than 1,000 daily active users, despite holding a combined valuation of $2.4 billion, according to CoinMarketCap. The article was based on data and insights provided by DappRadar, a reputable data aggregator for dApps, NFTs, and DeFi. 

In response to the CoinDesk article, The Sandbox and Decentraland each released official statements on Twitter, revealing their daily active user numbers. 

The post by The Sandbox read:

Decentraland said

In the wake of the official announcements, CoinDesk updated its article on October 11th, introducing additional context and details, including comments from the platforms’ respective teams. 

Here’s a breakdown of the original CoinDesk article published on October 7th, generated with the help of Archive.org:

  • The article stated that, according to DappRadar, Decentraland maintained 38 active users, while its competitor, The Sandbox, reported 522 active users. 
  • “Active users” were defined as those that had performed unique wallet address interactions with the platform’s smart contract. 
  • Reportedly, DappRadar’s data did not include users who had visited the metaverse platform for events such as the ‘Alpha Season 3 and virtual fashion week
  • The article alleged that the highest number of daily users on Decentraland was 675, while The Sandbox reportedly drew in a significantly higher number of 4,503 daily active users. 
  • The article included a statement from Sam Hamilton, Creative Director at Decentraland, which stated that, since recording its peak attendance in March, the number of new users and spectators visiting the platform has slowed, despite claiming to have an average of 8,000 daily users. 
  • CoinDesk compared The Sandbox and Decentraland with Axie Infinity, a popular Play to Earn (P2E) game, which plays host to 22,000 daily users, according to DappRadar. The article suggested that the open-ended style of the metaverses, as well as their lack of incentives to stay, may have contributed to the lack of returning users. 
  • It went on to include statements from Sasha Fleyshman, a Portfolio Manager at Arca, who underlined: “For metaverse platforms to be valuable, they have to operate as intended.” Fleyshman went on to say that “anyone telling you that there’s a metaverse today that has worked is lying through their teeth.

The Aftermath

The CoinDesk article met with criticism from the crypto community. Many users asserted that the original article was based on false data, and lacked appropriate investigation, while others invited CoinDesk to join them in their respective metaverses to prove that their communities are indeed active.

In response to the article, Decentraland also shared an announcement through its social media, explaining the discrepancy in the data regarding active users on its platform. The team also addressed DCL Metrics, Decentraland DAO’s dashboard, and also provided, what it claims to be, accurate metrics. 

On October 10th, The Sandbox, which has recently been keeping busy with ‘Alpha Season 3, also addressed the report, releasing its user numbers on its social media channels. 

On October 11th, shortly after backlash from both communities and the official announcements of each company, CoinDesk updated its article to include more context, which it announced on Twitter.

A synopsis of the updates made since: 

  • CoinDesk included comments from Decentraland and The Sandbox, defining what it means to be an active user.
  • Decentraland stated that an active user is one who logs in and moves out of a parcel of Land. Similarly, The Sandbox explained that they define an active user as one who stays connected over a period of time after logging in. The Sandbox later clarified that a daily active user is someone who connects on a daily basis.

On the Flipside

  • The CoinDesk controversy comes after the release of a detailed podcast which discusses what it means to be a Crypto Journalist. 
  • What any given platform considers to be an active user often differs substantially, so the definition held by data aggregators like DappRadar may not always line up. 
  • The situation puts the accuracy of data hosted on DappRadar and other such data aggregators into question.

Why You Should Care

In its original publication, CoinDesk overlooked some angles of the story and failed to provide the necessary context for its findings. Crypto Journalists and related publications demonstrate the value of their readers by reporting accurate facts, news, and details. To do that, a story must be examined from all possible angles, and consider all the available data in order to provide the full context. 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

Inshaullah is a crypto and blockchain gaming enthusiast at DailyCoin, who has a knack for writing all things he’s passionate about: crypto, data, games, and coding. As a gamer, Inshaullah writes about interesting blockchain games and GameFi protocols, hunts for the next big news in the crypto space, and creates content that is noob-friendly and fluff-free. With a background in Computer Engineering, Inshaullah has been in the crypto world since 2019. He’s seen a lot of horrors ever since, and nothing fazes him anymore.