Vedant Sahu
As global tech leaders lose interest in the metaverse, MetaMinds Group CEO Sandra Helou contends that the shortcomings of metaverse initiatives can be attributed to a deficiency in well-defined business models.
The metaverse might not be as appealing to some global tech leaders now as it was two years back. The various investments and ventures into this cutting-edge technology seem to have met with failure, possibly due to shortcomings in their testing stages.
At the Cardano Summit in Dubai that just passed, Sandra Helou, the CEO of MetaMinds Group, shared with Cointelegraph that the metaverse’s critical misstep has been the lack of business models customized for enterprises. She stated that this has been “the biggest failure in the metaverse,” and that chasing after immediate gains is a flawed tactic. Her exact words were:
“When it comes to applying technology similar to the metaverse, that in itself requires a massive overhaul and shift in the business vision, teams and business models… The biggest thing that we’re seeing is that people did not get their business model right, which is why a lot of them failed.”
Helou’s remarks align with the findings of a recent KPMG study indicating a skeptical stance among tech executives regarding the metaverse’s immediate impact on business success. The report highlights that just 29% of technological chiefs in the United Arab Emirates and 37% worldwide view the metaverse as instrumental for their business’s short-term achievements. The survey also suggests a growing preference for artificial intelligence (AI) among the majority of tech leaders over the coming three years.
Cointelegraph Arabic reporter Hermi De Ramos in conversation with Helou at the Cardano Summit in Dubai. Source: Mojo
“The metaverse is not for short-term goals. It’s definitely a long-term vision that requires a lot of effort, a lot of strategy, teams dedicated to it and funding,” the executive added.
At the beginning of the year, Business Insider released an analysis with the headline “RIP metaverse, we hardly knew ye.” Authored by Ed Zitron of EZPR, the article argued that the metaverse, once a topic of considerable buzz, had effectively ceased to be relevant after losing the interest of the corporate sector.
Despite this, those involved in developing the metaverse remained largely undeterred, continuing to be positive about the capacity of the technology to forge novel experiences for users.
In discussions about how businesses can maintain and enhance the pertinence of metaverse initiatives, Helou pointed out that focusing on the aspects of accessibility and interoperability is crucial for the industry.
“The space is pretty fragmented… Like a segment that if you want to use Roblox, you have your own avatar, you have your own identity. Then, if you want to move to another area, you have a [different] avatar and identity. It’s very difficult.”
Helou made an analogy regarding the impracticality of the current metaverse setup, likening it to the absurdity of having to switch one’s physical wallet and attire with every store visit, which she believes is nonsensical. She emphasized that metaverse products must be crafted to meet the demands of users, clients, and the market at large, and this includes choosing the right blockchain network, assets, and understanding the safety and security involved in crafting digital identities. She underlined her belief in the future of the metaverse, stating:
“We truly believe that once you get that right, you’ll be able to make an interoperable world where everyone can freely move around.”
The UAE’s Rise as a Web3 Nexus
In the context of the UAE positioning itself as a central node for Web3 innovation, Helou highlighted that Dubai and the broader UAE region have been proactive in attracting global cryptocurrency companies with their welcoming regulatory environment. She pointed out that this approach to emerging technologies has facilitated creators in their endeavors, expressing this sentiment:
“Technology is universal… But if you look at the rules and regulations and the ease of commerce that Dubai has given the founders, CEOs and builders, it does put it in a prime position for the metaverse to be extremely successful for people who do lift off from the region.”
Helou in a panel discussion on Dubai’s Web3 progress during the Cardano Summit in Dubai. Source: Helion Capital/X
Helou is of the view that the UAE’s regulatory strategy for the sector will diverge from the tactics used by the United States Securities and Exchange Commission, which has been referred to by the community as “regulation by enforcement.”
Following the creation of Dubai’s Virtual Assets Regulatory Authority, which is responsible for advancing essential policies, Helou noted that this body has refrained from excessively controlling Web3 ventures, avoiding an overly hands-on approach to the industry.