Global Technology Leader Doubts Metaverse Relevance, Errors In Business Model Revealed

Sandra Badminton, CEO of MetaMinds Group, (photo: screenshot/ary)

JAKARTA - The current Metaverse may no longer be a major attraction for some global technology leaders compared to two years ago. However, the weakness in testing various investments and initiatives in this growing technology could cause some of them to fail.

While taking place Cardano Summit recently in Dubai, Sandraxifu, CEO of MetaMinds Group, said that the lack of suitable business models for the company "has been the biggest failure in the metaverse." Moreover, relying on technology for short-term success is not the right approach.

"When applying technology similar to the metaverse, it itself requires major overhaul and changes in business vision, team, and business model... The biggest thing we see is that people don't manage to build their business models properly, that's why a lot of them fail."

This review came after the KPMG recently released a report that found only 29% of technology leaders in the United Arab Emirates and 37% globally believed that the metaverse would play an important role in helping their business achieve short-term success. According to the survey, most technology leaders tend to prefer artificial intelligence (AI) in the next three years.

"Now, the metaverse is not for short-term purposes. This is clearly a long-term vision that requires a lot of effort, a lot of strategy, dedicated teams, and funding," he added.

Earlier this year, Business Insider published a report entitled "RIP metaverse, we hardly knew yes." The article, written by EZPR CEO Ed Zitron, claims that the "popular technology" "had died after being abandoned by the business world."

However, the narrative does not shake developers in this area, most of whom remain optimistic about the potential of this technology to create new user experiences.

When asked about how the company can ensure the continuity and relevance of the metaverse project, Badminton said that the industry must address accessibility and interoperability.

"This room is quite split... Like a segment that if you want to use Roblox, you have your own avatar and identity. Then, if you want to move to another area, you have different avatars and identities. It's very difficult. Like every time you enter the store, you need to change your physical wallet and clothes. It doesn't make sense, "explained

The entrepreneur explained that the builders must ensure that metaverse products are aligned with what is needed by users, their clients, and the market, including the right blockchain network, the assets used, and the understanding of security and security behind digital identities.

"We really believe that once you do it right, you will be able to create a world that is interoperable where everyone can move freely," said Mikhasu.

Dubai and the wider United Arab Emirates have sought to attract global crypto companies with policies that are friendly to crypto. According to Mikhasu, the jurisdiction's approach to developing technology has made it easier for builders to realize their vision.

"Technology is universal... But if you look at the rules and regulations as well as the ease of doing business Dubai has given founders, CEOs, and builders, it positions the region as the main position for the metaverse to be very successful for people starting from this region."

He believes that the United Arab Emirates, in general, will not take a similar approach to what the United States Securities and Exchange Commission has done to the sector, which its community describes as "regulatory through law enforcement."

With the establishment of Dubai's Virtual Asset Regulatory Authority, prompting the necessary policies, the executive said the regulator did not go directly to the Web3 project to regulate the industry.