Facebook’s Investment in the Metaverse Could Be a Red Flag For Facebook Investors
The Metaverse is a shared virtual world that will allow gamers to play online games, interact with each other, and even make friends with AI avatars. The main differences from standard VR gaming are that players can invite real-life friends to play in their virtual world, and players can form relationships. A fundamental aspect of metaverse gaming will be play to earn, with users able to trade items and services for cryptocurrency. There will also be a variety of other content centers and a planet dedicated to meditation and self-actualization.
Popular blockchain-based applications for the Metaverse include SecondLive, Decentraland, and Axie Infinity. In Axie Infinity, Axies are non-fungible tokens that enable players to create virtual worlds. They can then breed up to seven times and sell off the offspring. Axies have the ability to transfer value to any other Axie. The Metaverse will be a platform for gaming and will be a gateway to the future of blockchain technology.
Facebook has been throwing money at the Metaverse and is muscling into the virtual world space. Ultimately, a dominant player can harness the early network effects and become a giant. Having said that, a company’s investment in a metaverse could be a red flag for investors in Facebook. While Facebook claims to be building responsibly, many people view this as a threat to the open metaverse, some believe that Tencent is a good example of why this space should be open to all.