Editorial: How the Crypto Crash—and Meta’s Missteps—Are Souring the General Public on the Metaverse

As somebody who writes about social VR and flatscreen virtual worlds on this blog, with a popular Discord server packed with metaverse fanatics and a front-row seat on pretty much everything that has been happening in this space, let me tell you, the past twelve months have been a wild ride. You can even see it in my blog statistics of the number of visitors and views the RyanSchultz.com blog has attracted over the past year:

See that surge from October through March? In October, Mark Zuckerberg announced in a Connect 2021 keynote that Facebook would rebrand as Meta, and would focus on realizing his vision of the metaverse. This also coincided with a crypto speculation boom, where people and companies were frantically bidding for artificially scarce NFT-based plots of land in various blockchain metaverse platforms.

Together, these events sparked a greater awareness among the general public of the metaverse (as indicated by a corresponding increase in traffic to my blog). However, it would appear that the ongoing crypto crash, combined with Meta’s recent woes and missteps, are causing people to sour on the concept. (And by “people”, I mean the general public, not the metaverse fanatics, content creators and world builders whom I tend to hang out with!)

As an illustration of this, I would like to focus on a recent announcement made by Mark Zuckerberg, about the expansion of their flagship consumer social VR platform, Horizon Worlds, from Canada, the U.S. and the U.K. into two new countries, France and Spain:

The first thing I think of when I look at this picture is: hoo boy, somebody working in Meta’s PR department is gonna get fired! You’re trying to sell people on Horizon Worlds with this unappealing, uninspiring, and frankly ugly image on Twitter?


The response to this on two different subreddit communities on Reddit, r/technology and r/Buttcoin, proves to be quite illuminating. (By the way, r/Buttcoin is the blockchain, crypto, and NFTs snark community, where we cryptoskeptics and critics love to discuss and dissect the latest shenanigans, antics, and scams in that world!)

Here are some of the better comments on the r/technology post, sparked by Paul Tessi’s biting August 17th, 2022 Fortune article, Does Mark Zuckerberg Not Understand How Bad His Metaverse Looks?

It looks like Mark Zuckerberg watched Ready Player One and thought he would be able to recreate that universe with MS Paint.

“Looking forward to seeing people explore and build immersive worlds!” :: “Work in my content mill, peasants.”

The more money they dump into this dumpster fire, the better chance Facebook finally collapses into the abyss. So keep doing it Zuck.

One much-upvoted comment reads as follows:

No one is building a $1500-2500 PC with [a] dedicated GPU to add a Facebook $600 VR headset to attend work meetings in a virtual space that looks like a kids CGI series from 2004 at a mass adoption level, where the majority of the public would use it daily for 8 hours at work then again for another 4-6 hours “for fun” at home, as the Meta dystopian dream suggests.

Meta has already been subsidizing the costs of their currently meh headset, which they just increased the prices of, as they were losing too much money.

For this to work, the hardware has to be good enough for grandma to be able to buy it on a pension, put it on out of the box and it just works, and it does not make her sick to her stomach in 5-20 minutes due to the low frame rates and quality.

That’s the barrier of entry to the space you need to be able to target… if that old guy at your office struggles with getting their mic to work on MS Teams for a video call every day, as the manager he is not going to order $100,000 worth of gear for your department that is hard to setup and use to meet in the metaverse.

This thing is dead on arrival, but Facebook is also dying/dead in it’s current form, so this Hail Mary [pass] is all they have.

In the August 17th Fortune article which spawned these responses, reporter Paul Tassi writes:

The thing is, this happens all the time with Zuckerberg and his metaverse because Horizon Worlds has looked terrible since its inception and has barely gotten any better over the years, where its avatars still look like Miis from 2012 and they still don’t have legs.

Granted, I understand that showing 2D screenshots of VR is difficult, and that VR generally lags behind traditional console and PC gaming in terms of graphics. And yet that doesn’t change the fact that even within VR, Horizon Worlds is one of the worst-looking offerings I have seen, and that Meta has spent something like $10 billion chasing its Horizon, VR-centric version of the metaverse, even embarrassingly changing their company name to reflect that. And…this is the result.


Meanwhile, here are some of the opinions of the cryptosnarkers over on r/Buttcoin:

If I was a Meta stockholder I would be selling the minute I saw that screenshot.

He (and many others) are hoping that nobody remembers Second Life ever existed, let alone that it still does. It has a dedicated audience of somewhere between half to one million users and that’s kinda it. I suspect the future for “the metaverse” is similar.

One r/Buttcoin member posted the following detailed comment:

This is the part I don’t understand. Any “meta” style environment will be incredibly limited in terms of graphics and gameplay due to the need to have a high number of players at once. So who is the target audience?

• Someone looking to play a game is going to go with something like Grand Theft Auto V (and continue to move on to the next biggest thing when they come out).
• The live concerts! aspect of the website seems equally absurd given the graphical limitations and that this would be less entertaining than watching a concert on TV.
• Your casual Farmville-style person isn’t shelling out hundreds of dollars for a VR headset.
• For their “practical” concepts like virtual stores, it seems to invalidate the concept of buying metaverse land as either the system will allow for fast travel style movement (making “premium” land a joke), or not allow for this travelling and completely turn off their customer base for this.

I just don’t see where the interest comes from.

And I chuckled at this wag’s opinion:

Second Life managed to survive because it fostered a community of weirdo people who fetishized the environment. I think the only person who fetishizes Facebook’s metaverse is Zuckerberg.

Absolutely SAVAGE! I live. Somebody else posted this gem to the r/Buttcoin subreddit:


Even worse, the cryptobros are starting to dunk on the metaverse, notably Shark Tank billionaire investor Mark Cuban. According to an August 8th, 2022 report in Fortune:

Mark Cuban, the billionaire Dallas Mavericks owner and avid crypto enthusiast, is not sold on the metaverse.

“The worst part is that people are buying real estate in these places. That’s just the dumbest shit ever,” he told the crypto-themed YouTube channel Altcoin Daily this past weekend.

I’m quite sure that the various blockchain-based metaverses like Voxels (formerly known as Cryptovoxels), Decentraland, Somnium Space, and The Sandbox, all of whom have seen the value and the trading volume of their NFT-based real estate decline during this crypto winter, were not expecting the ridicule and disdain of crypto influencers themselves! After all, the crypto crowd are main target audience of these platforms, not your average non-crypto user. You know things are getting weird when the cryptobros start to turn on each other!


So, what does all this mean? Well, it looks as though the concept of the metaverse, at least among the general public, is going to sustain some reputational damage, at least in the short term (12 to 24 months). Perhaps it was inevitable that there would be such a swing from irrational metaverse exuberance to equally irrational metaverse distaste, even disgust.

I am reminded of the Gartner technology consulting group’s well-known Hype Cycle, where we appear to be rapidly moving from the peak of inflated expectations, to the trough of disillusionment:

The five steps of the Gartner Hype Cycle (source: Wikipedia)

Also, this “trough of disillusionment” means that it’s going to be harder to sell consumers and businesses on the metaverse. This will apply both to behemoth corporations like Meta, Apple, and Alphabet (the parent company of Google), as well as to much smaller metaverse-building companies. As I have said before, not all platforms currently being worked on will survive this period.

It is possible, perhaps even likely, that only a handful will achieve dominance in this ever-evolving market, leaving the other firms to fight over the leftover scraps. Of course, some companies will be savvy enough to focus on a profitable niche market, such as the surgical training platform FundamentalVR, which recently received another venture capital infusion of US$20 million.

So, as Bette Davis once memorably said in the movie All About Eve: “Fasten your seatbelts…it’s going to be a bumpy night!”

Editorial: The Measures of Metaverse Success—And the Value of Community

I struggle with serious insomnia, which seems to be getting worse the longer the pandemic drags on (and no, the pandemic is NOT over). After another sleepless night, I gave up this morning, called in sick, and I am now sitting in from of The Beast, doing what I often do when I am chasing the Sandman in vain: hanging out in Second Life. (Hey, some people play solitaire. Others read or crochet. You do you, boo, and I’ll do me.)

I often like to visit popular clubs to listen to the music stream (sometimes I just park my avatar, turn up the sound, and use it as a radio while I work on something else). I often use a handy free HUD called What Is She Wearing? to inspect what an impeccably-dressed nearby avatar is wearing; in fact, many of my impulse purchases for both my male and female avatars were often something which I first spotted on somebody else on the other side of the virtual room!

Club 511, a very popular adult jazz club in Second Life

Some people are chatting (either in local chat or privately among themselves), others are dancing, still others are just doing a stand-and-model, showing off their avatar style. (Club 511 has a strict no-non-human avatars rule, so no furries, sadly! The Second Life furry community tends to hang out in their own clubs and bars.)

Which brings me in an meandering, roundabout way to the topic of this editorial: community. Clubs in Second Life come and go, and popular hotspots like Club 511 rise and fall in popularity with alarming regularity, but the thing that they all have in common is community. None of these places work without the avatars!

Metaverse platforms bring together people who meet, share common interests (such as jazz), chat, and form friendships, even romantic relationships. Countless couples in real life first met in a virtual world like Second Life (check out Draxtor Despres’ video series Love Made in Second Life if you want a few examples; also please watch Joe Hunting’s excellent feature-length VRChat documentary, We Met in Virtual Reality, currently streaming on HBO Max, or on Crave TV here in Canada).

One of the reasons for VRChat’s success to date is that you can pretty much guarantee that, when you log in, you will find places where you can meet and talk with other avatars. Over time and through word of mouth, you hear about virtual clubs and regularly-scheduled events, you start to schedule them into your calendar, et voilà—you’ve become part of a community, and made new friends or acquaintances. (I vividly remember how much fun the Endgame talk shows were, while they lasted! Again, such popular events tend to come and go over time.)

Yesterday evening, I finally downloaded and set up the Sansar client software on my new personal computer*, and signed in, wearing my Valve Index VR headset. My default landing point was, as it happens, the science-fiction-themed Social Hub, newly reset-up that very evening by stalwart community member (now Sansar employee) Medhue.

The Sansar Social Hub is back!

I stood in the slanted rays of virtual sunlight leaving long shadows on the red floor of the central plaza, among the park benches, and chatted with friends I had made several years before, and even met a few new people. It was as if I never left! I have been admittedly rather absent from Sansar these past couple of years, as the platform changed corporate hands and struggled at times, but it is showing renewed life under the leadership of its new CEO, Chance Richie.

The point that I am trying to make is this: even in a social VR platform that might only still have a low number of concurrent users, like Sansar, there remains a hard-core, committed user base who have established friendships and working relationships. They might not be strong in numbers, but they are strong in a sense of community, and community is the reason that people keep coming back. I have seen this happen time and time again, in any variety of flatscreen virtual worlds and social VR platforms over the years. As long as the metaverse platform hangs around long enough (and Sansar just celebrated the 5th anniversary of its open public beta), a community will form—and if they’re lucky, in popular worlds like Second Life and VRChat, many varied and vibrant subcommunities, too!

And I have noticed that the relationships we make in virtual worlds and social virtual reality tend to carry over, not only in real life, but onto other metaverse platforms, too. For example, I have made a point of buying avatar fashion or virtual home and garden decor in Second Life from content creators whom I first got to know personally during the Sansar alpha test period. And many of the people who decided to leave less-successful or failed worlds have also tended to bring their friends and business partners to build and enrich many other metaverse platforms over the years! The seeds first planted in Active Worlds (now 27 years old!) and Second Life (which just turned 19) have borne fruit in many newer metaverse platforms!

So how about, instead of using the standard corporate yardstick of success, and focusing on the purely mercantile aspects of the metaverse, we talk about the communities that they foster, and the valuable relationships that we make because of these worlds?

Let me give you a recent example. The tech industry newsletter called The Information recently published an article titled The Metaverse Real Estate Boom Turns into a Bust. Now, you and I cannot read the full text of that article unless you shell out US$399 a year to subscribe to The Information†, but what they did freely share with us poors the first few sentences of their report, plus a couple of rather interesting graphs:

The metaverse is in the midst of a real estate meltdown. Sales volumes and average prices for virtual land have plunged this year, part of a broader slide in crypto and non-fungible token prices.

Soaring interest in virtual property spawned an industry that mirrors traditional commercial real estate—buyers develop land by adding virtual storefronts, and then sell or rent it to companies looking to set up shop as a marketing strategy or to sell things like clothing for online avatars. Investors who bought at the peak are now sitting on land that has tumbled in value. Meanwhile the real-world economic downturn could weigh on brands’ appetite for spending on building out their metaverse presence.

I notice that, in a note underneath the charts, it says, in fine print: “Includes data from The Sandbox, Decentraland, Voxels (formerly known as Cryptovoxels), NFT Worlds, Somnium Space, and Superworld“. I was actually quite bemused at the inclusion of Superworld, as it is among those buy-a-virtual-piece-of-Earth NFT schemes which provoked a rather cranky editorial from this metaverse blogger! (At least Decentraland, Voxels, and Somnium Space have already launched an actual product, while The Sandbox, the scene of some frantic bidding for NFT-based real estate during the bull market, has the bad timing to be stuck in alpha testing during this ongoing crypto winter. And NFT Worlds just had the rug pulled out from under them by Microsoft and Minecraft.)

I have already written yet another of my infamously cranky editorial blogposts about how myopic it is to only look at the 27-year history of the metaverse from a purely blockchain perspective, but I have another pet peeve: the assumption that the success of a metaverse platform can only be measured by metrics like commodity prices and trading volume, and by how much they attract “brands”. It makes me want to tear my hair out!

Yes, obviously, these platforms need to have some level of economic success in order to stick around and for community to have a chance to take hold; that’s a given. But to ignore and/or mock a platform like Second Life or VRChat for not attracting or keeping big-name corporations or “brands” is missing the point. Metaverse success can also be measured by the strength and endurance of the communities and relationships they foster, things which you cannot assign a dollar value to.

So get out there, explore the various metaverse platforms out there, and see what appeals to you. Don’t let the current gloom and doom surrounding the blockchain-based metaverse platforms put you off the entire metaverse marketplace; there’s a lot more out there than the recent crop of NFT-based platforms. There’s so much going on out there!

So go and find your bliss, and find your community. You might just surprise yourself, and make a few friends along the way. Or just hear some good jazz 😉

OK, now that I have vented, this blogger is going to try and get some much-needed sleep…


*If you have an 11th or 12th generation Intel CPU on your computer, as I now do, you will encounter a bug which prevents the Sansar client from loading. The Sansar team is aware of this bug and is working to fix it, but in the interim, here’s a workaround:

  1. Open “File Explorer” (Win+E), right-click on “This PC”, and select “Properties”
  2. Select “Advanced System Settings”
  3. Select “Environment Variables” in the “Advanced” tab
  4. Select “New…” under “System variables”
  5. Input the text below and select “OK”
    Variable name: OPENSSL_ia32cap
    Variable value: ~0x200000200000000
  6. Confirm that the variable has been added successfully, then select “OK”

Do this, and you’ll have no problems loading Sansar, either in flatscreen desktop mode or in virtual reality!

†By the way, if you do happen to have a subscription to The Information, I’d dearly love to read that article! 😉

UPDATED! EDITORIAL: Minecraft Bans NFT Servers and In-Game Items, Catching NFT Worlds Off Guard

In the wake of the ongoing cryptocrash, and the falling dominoes of crypto firms, I have been spending a bit of time lately learning more about the blockchain space, hanging out in various Reddit communities where such matters are discussed. As I commented on one post:

Crypto culture is kinda fascinating in a train wreck kind of way.

Yesterday, Mojang Studios (the makers of the phenomenally successful voxel-based building game/metaverse Minecraft, which is owned by Microsoft), posted the following announcement on their official blog:

Hello everyone! Recently, we’ve received some feedback from members of the community asking for clarification and transparency regarding Mojang Studios and Minecraft’s position on NFTs (non-fungible tokens) and blockchain. 

While we are in the process of updating our Minecraft Usage Guidelines to offer more precise guidance on new technologies, we wanted to take the opportunity to share our view that integrations of NFTs with Minecraft are generally not something we will support or allow.

This news appears to have come as a most unwelcome surprise to the blockchain gaming company NFT Worlds, which posted the following message to their Discord announcements channel* and to Twitter:

First and foremost – this out-of-nowhere announcement by Microsoft/Minecraft to outright ban all possible uses of NFTs & blockchain tech within Minecraft feels like a step backwards in innovation, and may even have painful downstream effects for them in the long run—we’ll see how that plays out.

Regardless, we’re working through this internally and have all hands on deck brainstorming solutions around the Minecraft EULA changes, as well as outright pivots for the NFT Worlds ecosystem and team if necessary.

Our order of operations in figuring this out is as follows.

We’re working to get in contact with the right decision makers within the Minecraft policy enforcement team as well as the general Minecraft studio to understand the details of this policy change, what the true internal motivators may have been, and how if at all we can find an alternative outcome that’s beneficial to the Minecraft player base as well as Microsoft’s vested interest in Blockchain / NFT technology and GameFi.

In the event after the above conversations we come to the conclusion we can continue to operate, the show goes on as it’s been.

However, if we’re truly banned because of the risk of C&D/DMCA/Lawsuit by Minecraft/Microsoft from innovating on top of the Minecraft ecosystem, we move forward, we pivot.

The first option from here is we transition into our own Minecraft-like game engine & games platform. There’s been dozens of minecraft-like game engines developed over the last decade by various 3rd party teams – These were people wanting to innovate beyond the idea of Minecraft and add their own spin on it. This option means acquiring one of these engines & development teams to join us, and developing on top of it to bring the same vision for NFT Worlds to fruition but with Minecraft & Microsoft entirely out of the picture with no ability to stop us.

The second option is a pivot to a GameFi platform as a service for any game developer or games studio to effortlessly implement the same proven, patent pending, friction removing tech for GameFi we’ve developed over the last year and have intentionally generalized the last 9 months in the event we decided to or needed to branch out into a GameFi platform. All the systems that we’ve already built would be extremely quick and easy for us to pivot to an implementation for anyone to use. The other interesting piece here is as soon as the Minecraft news was announced, we’ve had multiple other metaverse / gamefi projects immediately reaching out to us wanting to use this tech we’ve already proven, strongly kickstarting possible adoption of such a platform. If we go this route, existing NFT Worlds, $WRLD and Genesis Avatar holders would have an equivalent stake via token and/or NFT(s) related to this platform based on their NFT Worlds related holdings once launched.

Like always, we’d love to hear our community’s opinion on everything presented above.

Bottom line, we’re not leaving. We have the community, we have the war chest, and we know we can build.

Here’s more details on that “war chest” they’re talking about (this article is dated February 24th, 2022, well before the crypto crash):

Clearly, people are into it — NFT Worlds has already generated $90 million in trading [on Opensea], even though it gave the 10,000 worlds away for free and only makes money from “royalties and secondary sales.” Worlds are currently going for a minimum of $45,000.

Yes, that’s right—NFT Worlds created 10,000 “fully decentralized, fully customizable, community-driven, play-to-earn” Minecraft worlds, which people have been buying and selling on the NFT marketplace Opensea. Gee, I wonder what those US$45,000-apiece worlds are worth right now, because without Minecraft’s cooperation, they’re pretty much worthless.

Needless to say, over on the blockchain/crypto/NFT snark subReddit community called r/Buttcoin†, people are having an absolute field day discussing this! Honestly, you need to go over there and read through the discussion, it’s quite entertaining. One commenter, after reading NFT Worlds’ announcement above, summarized it hilariously:

TL;DR: We want Microsoft to know they are wrong, and we are innovators. If they don’t allow the project, we will make our own, better Minecraft with blackjack and hookers.

Another Redditor responded:

Wow, imagine running a business totally dependent on someone else, yet being caught unaware on major business decision of this entity on whom you completely dependent upon.

Sounds like just the way people in crypto do business…with zero awareness of whats going on around them.

Seriously…how on earth do you build a company whose business model goes out the window with a single decision by the corporation who RUNS THE PLATFORM THEY’RE DEPENDENT UPON?!?? This is a prime example of a harebrained, half-baked cryptoscheme that somebody hatched up and was able to earn a tidy profit from, selling highly volatile, speculative blockchain-based assets to ignorant customers, who perhaps thought that they would be able to sell them for a profit to the next fool who comes along. It’s maddening.

Minecraft goes on to explain its decision:

In our Minecraft Usage Guidelines, we outline how a server owner can charge for access, and that all players should have access to the same functionality. We have these rules to ensure that Minecraft remains a community where everyone has access to the same content. NFTs, however, can create models of scarcity and exclusion that conflict with our Guidelines and the spirit of Minecraft.

To ensure that Minecraft players have a safe and inclusive experience, blockchain technologies are not permitted to be integrated inside our client and server applications, nor may Minecraft in-game content such as worlds, skins, persona items, or other mods, be utilized by blockchain technology to create a scarce digital asset. Our reasons follow.

Some companies have recently launched NFT implementations that are associated with Minecraft world files and skin packs. Other examples of how NFTs and blockchain could be utilized with Minecraft include creating Minecraft collectible NFTs, allowing players to earn NFTs through activities performed on a server, or earning Minecraft NFT rewards for activities outside the game. 

Each of these uses of NFTs and other blockchain technologies creates digital ownership based on scarcity and exclusion, which does not align with Minecraft values of creative inclusion and playing together. NFTs are not inclusive of all our community and create a scenario of the haves and the have-nots. The speculative pricing and investment mentality around NFTs takes the focus away from playing the game and encourages profiteering, which we think is inconsistent with the long-term joy and success of our players.

Amen. 100%! CRYPTO ADDS NOTHING TO MINECRAFT! (I can’t believe I am cheering for Microsoft here…)

It is honestly refreshing to see yet another major corporation draw a line in the sand, and explain so clearly why they are drawing that line! Minecraft is a game, and games are supposed to be fun, people. (By the way, it would appear that Axie Infinity and all the other “play-to-earn” NFT games are bleeding users during this cryptocrash, as they can no longer earn enough to make it profitable. And it’s not just play-to-earm, it’s all the X-to-earn NFT schemes, like the NFT-based running app StepN, whose payouts to users have cratered in just two months.)

As I have editorialized before, a harsh, long, bitter crypto winter is going to shake out a lot of sketchy companies with poorly-thought-out plans, like NFT Worlds.

I suspect that NFT Worlds is going to go through a rough patch…

*To see this message, you will have to join the NFT Worlds Discord, which requires you to jump through a few hoops to verify that you’re a human being. I joined just to get a copy of the announcement, but I might stick around as a lurker, just to see how the company and its users attempt to spin this disaster 😉

†Seriously, if you haven’t checked out r/Buttcoin yet, please do so, along with Molly White excellent website, Web3 Is Going Just Great (the title is meant to be sarcastic), which outlines the latest crises, hoaxes, scams, and fiascoes in the blockchain space, keeping a running total of money lost to date in a ticker in the bottom right-hand corner.

UPDATE July 27th, 2022: Ars Technica has an update on the saga here. Apparently, the NFT Worlds token’s value has plummeted over 60 percent in a week following Mojang’s announcement.

UPDATED! How the Crypto Crash Is Affecting Blockchain-Based Metaverse Platforms: Will a Crypto Winter Kill Off Some Projects?

I have been waiting a while to write this editorial, but I think the right time has come.

(Somebody posted this to the r/buttcoin Reddit, and I had to laugh!)

I have been avidly following every twist and turn of the current crypto crash, following various Reddit communities and scouring Google and Apple News for the reports of the latest crypto companies to fail, taking their investors’ money with them. The chain of dominos continues to fall, and nobody can predict where or when this “crypto winter” will end.

In talking about all this, there’s lot of jargon being thrown around which can sometimes be difficult to understand: smart contracts, DeFi, NFTs, DAOs, etc. The following 7-minute YouTube video explains all these and other terms, and I can recommend it highly (and it can serve as a refresher for the rest of you):


From the moment I first began writing about the blockchain-based virtual worlds and social VR platforms (starting with Decentraland, years before they actually opened their doors to the general public), I have been fascinated by the new crop of metaverse projects boasting some blockchain component. These projects seem to split into two kinds:

1. Projects with Non-Fungible Token (NFT)-based virtual real estate (e.g. Decentraland, Cryptovoxels, Somnium Space, The Sandbox). All such projects tend to have their own cryptocurrency (or use Ether, ETH), and offer a marketplace where you can buy and sell other blockchain-based goods, such as avatar wearables.

2. Projects without NFT land, but with an associated cryptocurrency (e.g. Sensorium Galaxy and NeosVR).

While examples of the second category are few in number, there has been an explosion of projects announced in the first category over the past couple of years. Many of these projects had hoped to duplicate the success of Decentraland, which had the great good fortune to do an Initial Coin Offering at the absolute perfect time, in 2017 raising US$24 million dollars before ever building a platform.

Decentraland’s successful subsequent virtual land auctions (with their frenzied bidding wars for NFT-based virtual pieces of land called, naturally enough, LAND) also attracted a lot of attention and favourable press. This no doubt encouraged other companies to set up similar schemes in an effort to duplicate that success. Among those that have actually delivered a viable product to date are Cryptovoxels, Somnium Space, and the still-in-alpha/beta-testing-but-soon-to-launch platform The Sandbox. Each of these projects inspired similar bidding frenzies for artificially-scarce NFT-based parcels of virtual real estate, in some cases setting records.


The following charts show just how much the value of the cryptocurrencies associated with just these six projects has tumbled over the past three months (all charts are via the CoinMarketCap website):

Decentraland MANA to USD chart (past three months)
Somnium Space CUBE to USD chrt (past 3 months)
ETH (used in Cryptovoxels/Voxels) to USD chart (past three months)
The Sandbox’s SAND to USD chart (past three months)
Sensorium Galaxy’s SENSO to USD chart (past three months)

And here’s one that really hurts: the surge and plunge in value of Neos Credits (NCR) over the past year. At the moment, project development has come to a near-standstill as the CEO fights against the CTO and the rest of the dev team about the role crypto will play in the NeosVR platform (and the matter will likely land up in court for the lawyers to battle over).

It’s still not clear if NeosVR can recover from this fiasco, which breaks my heart because it has such great technology! I do consider this to be the textbook example of how crypto speculation and greed can cause problems with an otherwise stellar platform; without being hooked to NCR, a cryptocurrency which has as yet has no practical use on the platform, NeosVR would still be doing very well! Instead, it is bleeding investors.


In addition, you can see the clear downward trend in both sales volume and average sale price for the following NFT-based properties over time (all taken from the NFT Stats website). Some seem to be doing a bit better than others, but all are down:

Decentraland LAND sales volume and average sale price (past three months)
Somnium Space Land NFTs sales volumes and average sales price (past three months)
Voxels—foremerly called Cryptovoxels—sales volumes and average dale prices (past three months)
The Sandbox’s LAND sales volumes and average sale prices (past three months)

The overall situation is grim, particularly for those who bought cryptocurrencies and NFTs at the height of the market, perhaps expecting to flip them for a quick profit. But, for the countless blockchain-based metaverse projects who hopped on the bandwagon after Decentraland and the other market early movers, the situation is even worse. In many cases, the newer companies expected to raise funds by minting and selling NFTs to investors, often well before anything concrete was built! Examples of such projects include two I have written about earlier this year, Wilder World and VictoriaVR, but there are literally dozens and dozens more such projects, more than I could ever hope to cover in my blog. The prognosis for these newer projects is not looking especially promising, as potential investors head for the hills.

And, sadly, the bullish crypto market also brought out all the scammers who wanted to take advantage of the hothouse atmosphere of crypto investment, accepting money up front for what was essentially vapourware, and then pulling the rug out from under those who had not done their proper due diligence. Greed and FOMO (fear of missing out) drove a lot of ignorant cryptobros to pour money into a lot of projects which, to date, have had little to show for them but a slick website and an active Discord (or Telegram) server where everybody was pumping everybody else up to buy and HODL (hold on for dear life to) their associated crypto and NFT assets.

Some non-financially-savvy people, believing that they were truly on to a sure thing, gambled money they could not afford to lose—their life savings, their retirement funds, even their childrens’ college funds—and have lost everything, or next to everything, in the current bear market, holding near-worthless assets they cannot find anyone to sell to. I keep reading heartbreaking stories in the various subReddits of investors who have lost everything. Many have spoken of suicide, and many Reddit communities have posted resources to support those who are struggling with their mental health as a result of their poor financial decisions.

In the current environment, I believe that any blockchain-based metaverse (or a metaverse platform with an associated cryptocurrency), is going to be in for a very rough ride over the next few months, as governments around the world raise interest rates, and the easy, low-interest credit dries up, and a global recession looms. People are going to retreat to safer investments, fleeing the demonstrably high volatility of crypto and blockchain assets like NFTs. We can expect to see a mass stampede to the exits in some projects, and frankly, not all the blockchain-based metaverse platforms out there will survive.

UPDATE July 14th, 2022: In yet another sign of growing trouble in the NFT space, which has seen sales nosedive in recent months, the major NFT marketplace OpenSea has announced today that it is laying off 20% of its staff.