Cryptocurrency creator Ether predicts the failure of Metaverse

Vitalik Buterin, the creator of Ether, the second most important cryptocurrency on the market, prophesies the failure of Meta’s imagined metaverse. According to him, the concept is still too vague for companies to meet user needs. While the metaverse market is expected to explode in the coming years, Meta’s Reality Labs division is in poor shape.

Vitalik Buterin, the creator of the Ethereum network and the cryptocurrency Ether, doesn’t believe it the future of Meta’s metaverse. On his Twitter account, the Russian-Canadian developer estimated that none of the current attempts by companies to intentionally create the metaverse will go anywhere “. It is unclear whether the computer scientist is of the same opinion regarding decentralized metaverses distributed on the blockchain, such as Decentraland or The Sandbox.

The metaverse, a concept that is still very vague

In another tweet, Buterin specifies that in his eyes the metaverse imagined by Meta (ex-Facebook) is destined to fail. On the other hand, he is convinced that the concept of metaverse, or metaverse in English, is well on its way to being realized. But, for the moment, this concept is still too vague for companies to successfully address it.

“We don’t know the definition of ‘metaverse’ yet, it’s too early to know what people really want. So everything Facebook creates now will fail “Vitalik Buterin prophesies.

According to Buterin, companies are building the metaverse before user needs have been clearly defined. As a study by Censuswide shows, there is a huge gap between consumer expectations and the solutions developed by companies. While most of the Internet users surveyed want save time shopping in virtual reality or augmented, brands develop experiences modeled on reality.

Furthermore, a Sortlist survey reveals this half of Europeans distrust the metaverse as currently presented. If of many companies invest 10 to 20% of their marketing or innovation budget in the metaverse, more than half of users say they don’t trust this concept, points out Sortlist, the specialist in connecting advertisers and marketing agencies.

Reggie Fils-Aime, former director of the US branch of Nintendo, agrees with Vitalik Buterin. Questioned by Bloomberg last March, he believes the current definition ” Meta metaverse will not be successful. Fils-Aimé points the finger lack of innovation inherent in the group of Mark Zuckerberg.

Note that Meta defines the metaverse as 3D spaces that will allow you to socialize, learn, collaborate and play in a way that goes beyond what we can imagine “. As Vitalik Buterin points out, this definition is indeed very vague.

Related: Meta sees Apple as its rival in creating the metaverse

Meta’s metaverse in turmoil

In the wake of the name change, Mark Zuckerberg’s group has established itself as one of the figureheads of the metaverse. Meta has multiplied its investments in the sector. Various accessory projects related to augmented and virtual reality have emerged from the company’s laboratories. In parallel, Meta has also launched software solutions aimed at the metaverse future, such as Meta Pay, a digital clothing store for dressing avatars and Meta Horizons Workroom, a VR conference room.

Unfortunately, Reality workshops, Meta’s dedicated metaverse division, quickly accumulated financial losses. Within a quarter, the branch lost the Californian giant 2.81 billion dollars. In 2022, Reality Labs accumulates $ 5.77 billion in losses. To reduce the deficit and reassure investors, Mark Zuckerberg canceled several projects, including the connected watch dedicated to the metaverse, and postponed the launch of the first augmented reality glasses to 2024.

Against this backdrop, Meta’s stock market contracted by around $ 160, down more than 50% in one year. Despite the losses, Mark Zuckerberg continues to defend his vision of the metaverse in front of shareholders. The CEO thinks convinced that the development of the metaverse will unlock hundreds of billions of dollars, even trillions of dollars, over time ”.

Despite Meta’s setback, most analysts expect Metaverse to represent a huge market in the years to come. According to Technavion, a consulting and research firm, the digital worlds market will reach 50.37 billion dollars by 2026. Even more optimistic, the American consultancy Grand View Research (GVR) has a market of 678 billion dollars. by 2030. According to Technavion according to a study by Gartner, 25% of people will spend at least an hour in the metaverse in 2026. Will Meta be able to ride the wave?

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