The metaverse, once a hot topic among global tech leaders, has lost some of its mainstream appeal over the past two years. However, shortcomings in testing various investments and initiatives within this emerging technology have led to several failures.
During the recent Cardano Summit in Dubai, Sandra Helou, CEO of MetaMinds Group, expressed her views on the metaverse’s challenges. She highlighted the lack of tailor-fit business models for enterprises as the biggest failure in the metaverse.
According to her, trying to achieve short-term wins with the metaverse is not the right approach, as it requires a massive overhaul of business visions, teams, and models. Many projects failed because they did not get their business models right.
KPMG’s recent report revealed that only 29% of tech leaders in the UAE and 37% globally believe the metaverse will play a crucial role in achieving short-term business success.
Most tech leaders are turning to artificial intelligence (AI) for the next three years, as they consider the metaverse a long-term vision that demands substantial effort, strategy, dedicated teams, and funding.
Earlier this year, Business Insider published an article titled “RIP metaverse, we hardly knew ye,” suggesting that the once-promising technology had died after being abandoned by the business world.
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However, builders in the space remain optimistic about the metaverse’s potential to create new user experiences.
When asked about ensuring the longevity and relevance of metaverse projects, Helou emphasized the need to address accessibility and interoperability.
The fragmented nature of the space, where each platform has its own avatar and identity, poses challenges for users.
Helou compared it to changing your physical wallet and clothes every time you enter a different store, highlighting the impracticality of this approach.
To create an interoperable world, builders should align metaverse product lines with user needs, utilize the right blockchain network, and prioritize safety and security for digital identities.
Dubai and the wider UAE have been actively working to attract global crypto firms with crypto-friendly policies.
According to Helou, the jurisdiction’s approach to emerging technologies has made it easier for builders to realize their metaverse visions.
She believes that the UAE will not adopt the same regulatory approach as the United States Securities and Exchange Commission, often described as “regulation by enforcement.”
With the establishment of Dubai’s Virtual Assets Regulatory Authority, the regulator is not micromanaging the Web3 industry, providing a conducive environment for success in the metaverse.
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