Why Bitcoin Masterminds Face Very Different Fates
The opinions expressed by entrepreneurs contributors are their own.
Facebook stunned the world last October when it rebranded itself as "." With the name change, the social media giant that has helped shape the internet for the past two decades appears to have made the decision to ride the boom hype that nearly hijacked the latest bull run.
And Meta wasn't the only one. Microsoft announced that it would adapt its signature software products into its own enterprise version of the Metaverse soon after, as hundreds of crypto projects latched onto the new buzzword, adding related words such as NFT, AR and VR to their messaging. By the end of 2021, real estate sales in the metaverse exceeded $500 million. For entrepreneurs less familiar with the concept: yes, that means people have spent millions of real US dollars on clubs, nightlife venues and stadiums that only exist virtually.
Another lesser known fact? Most companies creating products centered around the Metaverse – a more immersive internet involving virtual and augmented reality – use it as a major component. Metaverse developers integrate key crypto industry features, such as NFTs (non-fungible tokens) and utility tokens, to power their ecosystems.
Related: The New Wave of Web 3.0 Metaverse Innovations
To some extent, the intertwining of crypto and metaverse makes perfect sense. If you're creating a virtual space where people can experience real-world events with other real people, like live music performances and even marriage proposals, you'll need a native digital currency to power that. world. On the other hand, the association and dependence on crypto has made these startups vulnerable to the dramatic volatility of the crypto industry.
As such, they were equally affected by the crash that sent the crypto industry into a bear market in May, catalyzed by the collapse of Terra (LUNA) from $120 to 2 cents - a 99.9% correction - which sent shockwaves through the market. The Metaverse sub-sector of the broader crypto industry was probably hit harder than industry (), of which LUNA seemed almost an integral part.
Just as the value of real, tangible properties has skyrocketed nearly 19% over the past year, the average price per parcel of virtual land across the top six Ethereum Metaverse projects has fallen 85% in august. The agreed reason for the price drop could be waning interest. Still, there is a macro-level trend to consider: Very soon, it's reasonable to predict that land prices in the metaverse won't recover for months, if not years. Not until the next bull run hits the headlines again.
The Metaverse and DeFi can be thought of as two very different ideas of , the very first cryptocurrency and application of blockchain. Yet everyone will fare very differently in this bear market. Unlike NFTs that were the backbone of the Metaverse blockchain industry, much of which turned out to be scams, institutional demand for DeFi exposure remains strong.
Related: How NFTs Could Change Real Estate
In June, the blockchain unit of announced plans to bring trillions of dollars worth of tok...
The opinions expressed by entrepreneurs contributors are their own.
Facebook stunned the world last October when it rebranded itself as "." With the name change, the social media giant that has helped shape the internet for the past two decades appears to have made the decision to ride the boom hype that nearly hijacked the latest bull run.
And Meta wasn't the only one. Microsoft announced that it would adapt its signature software products into its own enterprise version of the Metaverse soon after, as hundreds of crypto projects latched onto the new buzzword, adding related words such as NFT, AR and VR to their messaging. By the end of 2021, real estate sales in the metaverse exceeded $500 million. For entrepreneurs less familiar with the concept: yes, that means people have spent millions of real US dollars on clubs, nightlife venues and stadiums that only exist virtually.
Another lesser known fact? Most companies creating products centered around the Metaverse – a more immersive internet involving virtual and augmented reality – use it as a major component. Metaverse developers integrate key crypto industry features, such as NFTs (non-fungible tokens) and utility tokens, to power their ecosystems.
Related: The New Wave of Web 3.0 Metaverse Innovations
To some extent, the intertwining of crypto and metaverse makes perfect sense. If you're creating a virtual space where people can experience real-world events with other real people, like live music performances and even marriage proposals, you'll need a native digital currency to power that. world. On the other hand, the association and dependence on crypto has made these startups vulnerable to the dramatic volatility of the crypto industry.
As such, they were equally affected by the crash that sent the crypto industry into a bear market in May, catalyzed by the collapse of Terra (LUNA) from $120 to 2 cents - a 99.9% correction - which sent shockwaves through the market. The Metaverse sub-sector of the broader crypto industry was probably hit harder than industry (), of which LUNA seemed almost an integral part.
Just as the value of real, tangible properties has skyrocketed nearly 19% over the past year, the average price per parcel of virtual land across the top six Ethereum Metaverse projects has fallen 85% in august. The agreed reason for the price drop could be waning interest. Still, there is a macro-level trend to consider: Very soon, it's reasonable to predict that land prices in the metaverse won't recover for months, if not years. Not until the next bull run hits the headlines again.
The Metaverse and DeFi can be thought of as two very different ideas of , the very first cryptocurrency and application of blockchain. Yet everyone will fare very differently in this bear market. Unlike NFTs that were the backbone of the Metaverse blockchain industry, much of which turned out to be scams, institutional demand for DeFi exposure remains strong.
Related: How NFTs Could Change Real Estate
In June, the blockchain unit of announced plans to bring trillions of dollars worth of tok...
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