Demystifying the business imperatives of the Metaverse

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Demystifying the business imperatives of the Metaverse
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The move to Web3 will is expected to be a boon for the creator economy, but what will a monetized metaverse look like asks nitingaur, founder and former director of IBM Digital Asset Labs.

The metaverse will change the paradigm of content creationWhile broad, the second category applies to the majority of projects that rely on token sales. Tokens are used as a funding mechanism to fuel development. In many cases, these fit a classical definition of security, which is a token sale with a profit expectation.

The financialization of NFTs in the digital realm can be compared to an analog to the mobile payments movement triggered by M-Pesa — a concept that started almost two decades ago and in its infancy reached a transaction volume of over $22 million a week with absolutely no financial intermediary, just preloaded conversational minutes traded to move money.

Just as in the case of M-Pesa, which ended up being served by regulated entities but changed the payments landscape, I expect financial institutions to make inroads into the Metaverse. These include not only traditional financial institutions but also de novo digital banks and decentralized autonomous organizations . This change will bring leverage, financing, loans and so forth, but it may have a unique metaverse flavor to it.

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