Web 3.0 promises a decentralised Internet built on blockchain technology that will give users more power over their content. — Link photo created by natanaelginting - www.freepik.com
There’s a lot of buzz about investing in what has been described as the next frontier of the Internet – the metaverse and Web 3.0.
With the metaverse, the aim is to create interconnected virtual worlds for work and play, while the objective of Web 3.0 is to build a decentralised Internet on blockchain technology that gives users more power over their content.
However, the metaverse and Web 3.0 are still very much in their infancy, according to lawyer Irina Heaver, speaker at the inaugural MetaVI Summit 2022 organised by Singapore-based FinEduTech firm 8VI Holdings Ltd.
The goal of the two-day conference is to unlock emerging opportunities for investors in the fintech sphere.
The rise of the metaverse alongside alternative forms of investment (such as NFTs or non-fungible tokens, and cryptocurrencies) has increasingly uncovered a wealth of untapped potential, but has also led to speculation and confusion, which the conference aimed to dispel.
A collaboration between VI College and MetaVI World, the conference attracted over 5,000 online attendees.
“Before the audience decides to sell their house, liquidate their kids’ college fund and put everything in a metaverse project, you have to educate yourself and be very careful,” said Heaver about investing in fintech.
The Dubai-based cryptocurrency and blockchain lawyer felt a lack of understanding could make people fall for hype and get lost in a sea of buzzwords.
“You have to understand that the founders in the crypto space are a little bit more optimistic than your normal founders,” she said.
Founders in the crypto space are a little bit more optimistic than ‘normal founders’, says Heaver. — Photos: 8VI
She is also concerned that people may end up investing in scams designed to defraud investors.
A term often used in fraudulent crypto-linked investments is “rug pull”, said Heaver. In a rug pull, the scammer uses social media to artificially inflate the price of crypto tokens before selling them, causing the price to collapse.
Heaver, who helps clients assess the potential of a project, said she will study its fundamentals, including related white papers, before presenting a detailed report.
“I will think of how there may have been other projects with the same goal that have failed in the past.
“I will look at the token economics and how are they planning to make money from this? Are they based on hype or other fundamentals? I will also research the developers,” she said.
Without understanding the concept, a person will just end up “going down the rabbit hole”, she said.
Her advice is to not invest more than one can afford and to start by testing with a small amount.
Rapper and managing director of Def Jam SEA, Joe Flizzow, echoed the thought, admitting he was no expert on the subject when he began fiddling with NFTs.
“I came into this space at the end of last year. I had previously dabbled in crypto and I found myself pretending to know what NFTs were rather than trying to study and understand the technology,” he said.
NFTs could be a game changer for musicians, he said, as they have the potential to change the way fans support their favourite artistes.
Joe cited American rapper Nas, who sold NFT tokens in January that came with royalty rights to two of his songs and granted buyers a percentage of the streaming revenue.
He is critical of individuals who release NFTs without attaching much utility value to the product.
“In my opinion, there are some artistes who have been irresponsible with their releases, knowing very well that their fanbase will buy anything that they put out.
“If you’re buying a piece of music, it should represent some kind of utility, such as letting you access certain things,” he said.
Mak says Web 3.0 and the metaverse have the potential to help form better human connections across the globe.
Another speaker at the MetaVI Summit, Cecily Mak, chief operating officer of Blockdaemon, felt that Web 3.0 and the metaverse could help form better human connections across the globe.
“Human beings need connection, we need to relate to other people to survive and thrive. It’s not just shelter, we actually need to feel seen.
“So, I think, there are going to be some fascinating opportunities for users, investors and founders in this space,” she said.
