Meta’s failure in the metaverse as seen by Vitalik Buterin

Vitalik Buterin said he doubts the success of any “existing corporate attempt” to create a metaverse. He said that all existing companies attempting to build a Metaverse today will fail.

Difficulty understanding the usefulness of the metaverse

Although Mark Zuckerberg, the creator of Facebook, has big plans for the virtual world, things don’t work out as expected for Meta. While many companies have been successful in the metaverse (e.g. Decentraland (Mana), The Sandbox, even AxieInfinity and ApeCoin), Meta itself is unable to be successful right now.

All the companies owned by Mr. Zuckerberg (Facebook, Instagram, WhatsApp, etc.) have been rebranded to be closer to the metaverse, but at the moment things are not working as they should.

In 2021, as the number of cryptocurrencies grew, some large companies wanted to join the metaverse. Coca-Cola and Adidas are two companies that have bought digital land, for example.

In a Twitter thread on Meta initiatives, Vitalik Buterin talked about the use of the word metaverse. He thinks that while a metaverse can be of great interest and usefulness to consumers, he doesn’t think that an existing company can create it.

“The ‘metaverse’ will happen, but I think the attempts of companies to intentionally create a metaverse will go nowhere. according to Vitalik Buterin. Companies won’t work on metaverse projects forever, he says, while the idea of ​​the metaverse will continue to be on the minds of the community.

It is common to say that for a company to exist, it must solve a problem. But many people don’t understand the problems or usefulness of the metaverse. However, the metaverse industry is expected to experience rapid development in the near future.

Some predict it will reach $ 800 billion by 2024. Even more optimistic is McKinsey, the metaverse industry will be worth $ 5 trillion by 2030. If mass adoption is to happen, the general public should have a better deal. understanding of the field.

The meta attempts so far are failing

The popularity of the metaverse skyrocketed after Zuckerberg announced that Facebook would support non-fungible tokens, the company has repeatedly indicated that it is focusing its efforts more in the metaverse space.

Reality Labs, Facebook’s metaverse arm, pumped $ 10 billion into space, according to Zuckerberg, and reported an 11-figure loss in 2021.
Facebook’s parent company Meta has been working on a fast and efficient payment method for many months. Their Diem project was heavily criticized by central banks, as it had more than two billion users on Instagram, Facebook and WhatsApp. Facebook’s parent company made announcements that worried regulators and politicians and tried to stop the project from moving forward.

Facebook’s dreams had to be scaled down because they couldn’t handle the huge amount of data Diem was producing. The Diem project was sold to Silvergate Capital (which is the banking part of Silvergate Bank) for $ 182 million. Now they are focusing on their hopes and dreams of creating a metaverse and developing a digital wallet.

On Wednesday, Meta announced that its revenue fell for the first time this year, along with a $ 2.8 billion loss for Reality Labs in its second quarter earnings report. Overall, the company has yet to prove that it can prove Vitalik Buterin wrong, based on the numbers.

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