The Metaverse is an exciting opportunity for venture capitalists and institutional investors, as the nascent sector is only beginning to take off. However, experts warn that not all Metaverse projects are equal and that investors must do their due diligence to ensure their planned investment gets off the ground.
This was one of the major talking points at the Unbounded Capital Summit recently held in New York. A panel of veterans and innovators discussed the impact of blockchain on the gaming sector and how it is set to change the industry.
The panel was hosted by Zach Resnick (Managing Executive of Unbounded Capital) and included:
- Jasmine Jia (Partner of Omakase Strategy at Recharge Capital)
- Ray Sharma (Founder and CEO of Extreme Venture Partners)
- Mike Hennessey (Senior Advisor and Investment Committee Member at Unbounded Capital)
Unintended consequences of the crypto token bubble
Sharma noted that an economic bubble has unintended consequences and that the world has just experienced a multi-trillion dollar bubble as investors lost out speculating on tokens.
‘The implications of an economic bubble of that magnitude is that a whole bunch of speculative investments were able to be directed into areas which otherwise would not have been funded. This is not dissimilar to 1999/2000 when the backbone of the Internet was established.’
He added that Metaverse development and technologies are two of the sectors that have been direct beneficiaries of speculative crypto trading in recent years.
Asked as to how he envisions the Metaverse, Sharma cited the movie Ready Player One where the protagonist can escape his difficult life inside of virtual reality as a possible future for Metaverse technology. This also explains Facebook CEO Mark Zuckerberg’s desire to help build this platform, he said
Metaverse requires a shift in thinking
Sharma added that over the next few years, venture capital funds are likely to shift their funding towards Metaverse applications.
‘Everything we see in the real world, that is of value when it comes to time or economic value will migrate to the virtual world through the Metaverse. The problem is that we have these disconnected island experiences.’
‘We need all of our virtual goods to follow us (through the Metaverse). We need to have an avatar in different types of experiences, and that means there is an amazing opportunity to rebuild all those significant things of value into the Metaverse.’
He added that everything in the real world will ultimately be replicated or live independently in this new meta-world. Sometimes the two worlds will cross over, and this will ultimately lead to some people spending most of their time in the Metaverse.
While he didn’t mention specific investment opportunities, Sharma said he was excited about some of the Metaverse projects currently being built on the BSV blockchain.
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