According to Bloomberg, although web3 is considered the new frontier of human creativity, its value indicators such as NFT and other token prices are mostly declining. Tokens.com spent $2.5 million in 2021 to purchase a piece of virtual real estate in Decentraland, but its virtual real estate portfolio has lost 80% of its value.
A company once attempted to offer Metaverse real estate loans but was thwarted by the crash. At the beginning of 2022, the company issued a loan for a property valued at $40,000, but subsequently denied all loan applications. As land values plummeted, the first and only mortgage was refunded at cost.
Reitzik stated that Crypto and NFT remain too complex for the average person, and consumers and brands are not yet ready. He believes that a Metaverse using fiat currency is more likely to attract the public and businesses. James Casey, a professor at George Mason University, also believes that fiat currency and centralized assets are critical to the success of the Metaverse.
