Ether Cryptocurrency Creator Predicts Metaverse’s Failure

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

Vitalik Buterin, the creator of the Ethereum network and the Ether cryptocurrency, does not believe in the future of Meta’s metaverse. On his Twitter account, the Russian-Canadian developer revealed that none of the current attempts by companies to intentionally create the metaverse will get anywhere”. It is unclear if the computer scientist is of the same opinion regarding metaverses deployed on the blockchain, as Decentraland or The Sandbox.

The metaverse, a still very vague concept

In another tweet, Buterin specifies that in his eyes the metaverse as imagined by Meta (ex-Facebook) is doomed to fail. On the other hand, he is convinced that the concept of metavers, or metavers in English, is on the right track to be realized. But, for the time being, this concept is still too vague for companies to be able to embark on it successfully.

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

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 Internet users surveyed want save time shopping in virtual reality or augmented, the brands develop experiences that are modeled on reality.

Additionally, a Sortlist survey reveals that half of Europeans distrust the metaverse as currently presented. Side many companies invest 10-20% 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 American branch of Nintendo, agrees with Vitalik Buterin. Asked by Bloomberg last March, he believes that the current definition » of metaverse by Meta will not be successful. Fils-Aimé points the finger lack of innovation inherent in Mark Zuckerberg’s group.

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

Related: Meta Considers Apple As Its Rival In Creating The Metaverse

The metaverse of Meta in turmoil

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

Unfortunately, reality labs, Meta’s dedicated metaverse division, quickly made up for the financial losses. In the space of a quarter, the branch has caused the Californian giant to lose $2.81 billion. In 2022, Reality Labs accumulates $5.77 billion in losses. To reduce the deficit and reassure investors, Mark Zuckerberg canceled several projects, including the watch adapted to the metaverse, and signaled the launch of the first glasses for augmented reality in 2024.

Against this backdrop, Meta’s stock market contracted around $160, down more than 50% in one year. Despite the losses, Mark Zuckerberg continues to defend his vision of the metaverse before shareholders. The CEO thinks convinced that the development of metaverses 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 company, the market for digital worlds will reach 50.37 billion dollars by 2026. Even more optimistic, the American consulting firm Grand View Research (GVR) is counting on a market to 678 billion dollars by 2030. According to a study by Gartner, 25% of people will spend at least one hour in metaverses in 2026. Will Meta be able to ride the wave?

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