Facebook is at risk of failure in the metaverse, developers say

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Facebook risks falling behind in the metaverse and missing out on a shift in consumer behavior if it doesn’t allow digital ownership, according to some of the virtual world pioneers.

Facebook beckoned to the growing market last month, announcing the company name change to Meta Platforms and focus on the metaverse. However, with few details beyond the rebranding, virtual space attendees doubt the company is ready to embrace the spirit that drives creativity and profitability in the segment.

“What Facebook is doing with meta is a false metaverse, unless they actually have a real description of how we can actually own it,” said Yat Siu, president and co-founder of Animoca Brands, an investor and developer of metaverse platforms , speaking on a panel at the Reuters Next conference.

“So far it’s just Disneyland. It’s a beautiful place to be, but we probably don’t really want to live there. It’s not the kind of place we can build a business.”

The term metaverse designates a series of shared spaces that can be accessed over the internet. Some use augmented reality through special glasses, but today’s platforms often look more like a video game than real life.

A lot of money is circulating there. Last week, a “plot” in the Decentraland online world was sold for the equivalent of $2.4 million.

Sales of such properties and other virtual objects, which are typically transacted through blockchain technology and non-fungible tokens (NFT), reached $10 billion (BRL 56 billion) in the third quarter, according to the market analyst. DappRadar.

more of the same but different

For the also pioneer of the metaverse, Benoit Pagotto, co-founder of the virtual footwear company RTFKT, digital property opens up space for changing the roles of brands and consumers. “It’s a big change [no modo] how the relationship between business, creativity and consumerism works,” Pagotto told Reuters Next. “A product is not something isolated. You need to think about how you can continue to update it,” he said.

In the meantime, there is a race to catch up, both by brands and by lawyers trying to define what digital property really is.

NFTs are unregulated and fraudsters are on the prowl. Anyone can create and sell an NFT and there is no guarantee of its value. “This is causing a bit of a headache for legal professionals trying to juggle vocabulary with what’s actually going on,” said Sophie Goossens, partner in technology and media law at Reed Smith in London.

“I think we’re going to see a mix of digital assets perfectly tailored to our real environment,” said Natalie Johnson, founder of Neuno, a future market for fashion brand NFTs, as technology companies launch augmented reality glasses.

“You don’t have to be a hardcore gamer to embrace and play with this new technology. It will be for everyone.”

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