Virtual reality

NFT.NYC: Games and tokenization are driving NFT industry maturation

At NFT.NYC 2023, Cointelegraph’s team learned firsthand how nonfungible tokens are shaping the digital world of tomorrow.

From tokenizing investment assets to game avatars, nonfungible tokens (NFTs) have an array of applications that go beyond digital art, with more projects coming online despite the market downturn in 2022.

At the NFT.NYC 2023 conference, Cointelegraph’s team learned first-hand from experts, projects, companies and the NFT community how the technology is shaping the digital world. Check out the highlights of the three-day event below:

NFT games show signs of maturing 

After years of development, the first batch of NFT-based gaming projects are entering the market, paving the way for a world in which real life and games will be blended, companies and developers told Cointelegraph.

“Ten years from now, I could be wearing my VR glasses or still using my phone, or probably using some new system interacting with the metaverse — but I’m going to be able to port my avatar and my NFT items. […] As a user, I’m going to start collecting more digital goods as NFTs, more than even physical goods, like clothing or watches or cars,“ explained Origin Protocol co-founder Matthew Liu regarding skins being interoperable across platforms.

Alex Connolly, co-founder of Immutable, has noticed an increase in competition in the gaming sector as more projects and developers seek to address blockchain-based challenges, such as interoperability:

“We‘re seeing a few alphas. There’s been a few things that have been playable here at NFT.NYC. Building games is hard. It takes a while […] to make them good. But I think we’re starting to see some of the best Web3 games that have ever been built. […] I can own my stuff and trade inside the game. I think that’s really powerful.”

Linus Chung, vice president of product at Origin Protocol, believes that companies trying to bring NFTs into their business should focus on significantly improving one pain point in people’s lives that traditional methods do not solve: “The last bull market has definitely shown that people will go through all of the hoops of acquiring crypto, getting a MetaMask wallet because there is some carrot at the end of that tunnel that’s way better than the traditional way of doing things.”

NFT.NYC 2023 attendees at the Immutable booth. Source: Cointelegraph

Real estate NFTs

One real-world application of NFTs is the tokenization of investment assets, and the real estate industry is one of its primary targets, event speakers said. Fintech company Ripple, for example, is working with other businesses developing real estate marketplaces and tokenized NFTs, Emi Yoshikawa, Ripple’s vice president of strategy and operations, told Cointelegraph. 

“Real estate is one of the big focuses of the market that we are very excited about. Obviously, it’s a massive market, but it’s very illiquid and also very inefficient. […] We are partnering with some companies who are building a marketplace to provide tokenized NFTs for real estate,“ she noted, before adding that Japan is one helping lead the tokenization market in Asia.

Related: Play-to-Earn is not dead, but game publishers are looking for alternatives

A decentralized economy powered by NFTs

Speaking at NFT.NYC, Solon Labs CEO Maxwell Lyman noted that while many projects, blockchains and coins are decentralized, their infrastructure relies on centralized ecosystems, exposing them to security and censorship risks.

“All of these protocols, they’re decentralized on the back end. There are smart contracts live on the Ethereum blockchain or whatever respective blockchain they’re hosted on. But if you look at their front end, they are hosted on centralized servers, an AWS server, or something equivalent,“ explained Lyman, adding: “We are a football field away from getting to a point where the space is actually decentralized.”

NFTs may play a crucial role in achieving real decentralization, according to Lyman. “There’s something that I call global personal capitalism that’s going to be enabled by the proliferation of nonfungible tokens. It’s the capability of anyone in the world to be able to control and monetize their personal information, their activities or their creations.”

From left to right: Gabe, Maxwell Lyman, KidEthereum and Dave Uhryniak speaking at the NFT.NYC. Source: Cointelegraph

Uncertainty about NFT regulation

During the event’s panels, legal experts pointed out that NFTs are facing the same regulatory uncertainty as the broader crypto industry, particularly in the United States, with a major question in the space being whether NFTs can be considered securities.

Katrina Paglia, chief compliance officer of Pantera Capital, said the venture firm is relying on recent enforcement actions from the Securities and Exchange Commission to gauge regulators’ views on digital assets: 

“We do a lot of scrolling of the SEC enforcement actions that have come out recently because with each one of these things, […] you glean a little bit more information about how they are thinking about applying for the Howey test. Until we actually get the clarity that the industry desperately needs and wants, we’re kind of relying on that for now.”

Magazine: Why join a blockchain gaming guild? Fun, profit and create better games

Top 5 VR puzzle games

VR puzzle games provide a unique and immersive gameplay experience, with challenging puzzles and captivating storylines that draw players in.

Playing virtual reality (VR) games provides a highly immersive and interactive experience, allowing players to feel as though they are physically present in the game’s world. VR games offer a unique level of engagement and interactivity, making for a highly entertaining and rewarding gameplay experience.

Here are five VR puzzle games that offer a fun and challenging gameplay experience.

The Room VR: A Dark Matter

Fireproof Games created the virtual reality puzzle game The Room VR: A Dark Matter. In order to look into the disappearance of a respected Egyptologist, players are transferred to the British Institute of Archaeology in 1908. Furthermore, to advance through the tale, the game’s challenging puzzles call for players to manipulate objects and find buried information.

Related: Top 7 virtual reality movies to add to your watchlist

The game’s puzzles are complex and difficult, demanding players to employ their creativity and problem-solving skills in order to advance. The gameplay is entertaining and gratifying because each puzzle is special and presents a distinct challenge.

The game has a captivating plot that attracts players and maintains their interest throughout. The game’s hidden mysteries are revealed as players advance, and they solve the mystery surrounding the disappearance of a renowned Egyptologist.

Puzzling Places

Realities.io created the VR puzzle game Puzzling Places. Players must put together beautiful 3D jigsaw puzzles depicting real-world sites from around the world, including the Taj Mahal and the Colosseum. As players solve each problem, the game offers a soothing and engaging experience.

Players may unwind while putting together gorgeous 3D jigsaw puzzles of real-world locales in this game, which delivers a soothing and fun gameplay experience. With the help of the game, players can gain more knowledge about well-known landmarks and important historical locations from all around the world.

The game fully utilizes virtual reality technology to produce an immersive gameplay environment that gives players the impression that they are physically there where they are assembling. The game’s puzzles range in difficulty from simple to difficult, providing players of all skill levels with a fun and entertaining challenge.

Red Matter 

Vertical Robot created the first-person puzzle game Red Matter, in which players take on the role of an astronaut sent to a mysterious moon base during the Cold War to investigate a strange signal. The game has a fascinating sci-fi plot and difficult puzzles that make use of its special zero-gravity dynamics.

Players are drawn into a world of intrigue and mystery thanks to the narrative of the game, which is captivating and immersive. In order to advance, players must solve difficult puzzles that make use of the game’s distinctive zero-gravity dynamics. These riddles force players to employ their creativity and problem-solving abilities. 

A Rogue Escape

Spare Components Oasis created the VR puzzle game Rogue Escape. Gamers must use their problem-solving abilities to escape from a mystery facility where they are incarcerated. Players must collect hints and solve puzzles to advance in the game, which has a variety of easy-to-difficult tasks.

The game’s atmosphere is immersive, with stunning visuals and a haunting soundtrack that draw players into the game’s world. Overall, A Rogue Escape is a fun and challenging game that offers a unique and rewarding puzzle-solving experience in a captivating virtual reality setting.

Related: Top 9 hacker and cybersecurity movies and TV shows

Time Stall

Time Stall is a VR puzzle game developed by Force Field VR. Players take on the role of a space station worker who must use a time-slowing device to solve puzzles and save the station from destruction. The game features challenging puzzles and an engaging story that unfolds as players progress through the game.

The game’s puzzles are original and difficult, requiring players to control time and make clever use of their surroundings to advance. Time Stall is a must-play game for aficionados of the puzzle and sci-fi genres because of the game’s breathtaking graphics and eerie soundtrack, which further improve the gameplay experience.

Augmented reality helps brands tell their story: MVFW 2023

During Metaverse Fashion Week 2023, the augmented reality platform — Over — projected a larger-than-life virtual catwalk over one of Milan’s most prominent locations.

The second annual Metaverse Fashion Week (MVFW) hit the virtual runway this year from March 28–31 via a collaboration between Spatial — a 3D social network platform — and Over, a blockchain-based augmented reality (AR) platform.

This year’s event saw over 60 brands, including legacy names such as Dolce & Gabbana, Tommy Hilfiger, DKNY and Gucci. Like last year, the event combined digital runways, panels with industry thought leaders and designers, and afterparties.

However, one of the main attractions occurred on the event’s last day, March 31, when a hybrid AR runway from Over was cast across the Piazza of Duomo di Milano — one of Milan’s most iconic locations.

Guests watching an AR fashion show on the Piazza of Duomo di Milano. Source: Over

Diego Di Tommaso, the co-founder and chief operating officer of Over, told Cointelegraph that core components of the fashion industry include projecting identities and creating narratives around brands.

“AR, specifically, is regarded as the new and exciting medium that allows brands to tell their stories and showcase their creations more compellingly and intuitively.”

Tommaso said the “impression, understanding and emotion” that consumers get from an item presented in AR vs. 2D is incomparable. According to the co-founder, AR catwalks, augmented shop windows and AR virtual try-on are only scratching the surface of what’s to come for the fashion industry. 

“As soon as consumer-ready smart glasses hit the market, there will be no brand without an AR strategy.”

This AR runway featured large-scale virtual models who paraded across the plaza in cutting-edge digital designs from the participating brands, including Balmain x Space Runners and Pet Liger, part of the Gucci “VAULT” project. Even some notable Bored Ape Yacht Club personalities walked the runway. 

Over shared with Cointelegraph that guests called the event a “new level of experience,” bringing digital fashion to a “whole new stage.”

Related: The metaverse is becoming a platform to unite fashion communities

Dave Carr, the head of creative strategy and partnership at Over, told Cointelegraph that AR differs from the metaverse because viewers don’t have to sit in front of a computer or strap on an “unwieldy VR headset” to have the experience. 

“With AR, the metaverse comes to you. You can be present among real people while enhancing your surroundings with amazing immersive digital content.”

Carr hinted that future developments from Over would even allow engagement with the AR models through speaking and deciding on outfits, indicating “huge implications for brands and retailers.”

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The metaverse is testing the limits of what is legally possible

While digital events and spaces have become increasingly common over the last few years, is digital reality the right place for all types of gatherings, such as court proceedings?

It’s no secret that over the last few years, many physical events have digital iterations or have been wholly digitized into virtual reality.

Recently, in Colombia, a local judge decided to hold a court hearing in the metaverse as an experiment with the technology. It was a civil case involving a traffic incident, which will progress further “partially” in the metaverse.

While many believe that the metaverse will reshape our social lives, it begs the question of whether digital reality can best serve important societal moments, such as court cases, where an individual’s future may be at stake. Cointelegraph spoke with Carlo D’Angelo, a former law professor and crypto criminal defense lawyer, to better understand the possible role of the metaverse in the legal system. 

The metaverse court case in Colombia was not far from what legal systems worldwide needed to do during the COVID-19 pandemic, which was to go digital. D’Angelo said:

“This urgent need to conduct the court’s business, [amid] a global pandemic, most certainly accelerated the mass adoption by judges of Zoom and other video conferencing services.”

D’Angelo told Cointelegraph that while these Zoom sessions worked for moving dockets and court hearings, the technology we’re currently working with is not well suited for jury trials.

Colombian court hearing held in the metaverse, February 15, 2023. Source: Reuters

The main reason is the in-person “subtle visual cues,” biases, and verbal and non-verbal cues are not picked up remotely, especially behind a metaverse avatar.

“As good as AR avatars might someday become at replicating facial and body language, they will never replace the subtle perceptions we make during human-to-human interactions.”

D’Angelo said watching the Colombian court hearing made him wonder what physical cues were being missed, such as raising an eyebrow from the judge or fidgeting from the opposition.

“I feel like advocating through a digital avatar takes something raw and emotionally vital away from that experience.”

He continued to say that it may be possible to overcome some of these issues in a civil trial, though virtual criminal trials will continue to raise additional concerns, as a person’s freedom is on the line.

Related: The ethics of the metaverse: Privacy, ownership and control

At least in the United States, he said too many constitutional rights are at stake, such as a defendant’s right to be “present” at trial and the right to “confront” the prosecution’s witnesses under the Sixth Amendment to the U.S. constitution.

D’Angelo said as both a lawyer and a “technologist,” he is bullish on the future of Web3 technology and how it can advance the legal profession. However, he believes there are still many challenges to overcome before courts adopt metaverse trials and hearings. 

“Innovation cannot come at the expense of a fair trial.”

He said the future of metaverse court hearings would largely depend on the general public’s mass adoption of augmented or virtual reality. If all parties are comfortable with the technology, he said, “maybe we will see metaverse hearings start to show up on court dockets.” 

At the moment, there is a growing community of lawyers, advocates and others involved in legal matters, who are becoming familiar with Web3 technologies and how they can impact the industry. 

Snow Crash manuscript that coined the term ‘metaverse’ to be auctioned by Sotheby’s

The manuscript is part of a larger series of physical and digital items related to the famous book.

The original manuscript of Neil Stephenson’s Snow Crash, the book that coined the term “metaverse,” will be auctioned by Sotheby’s, according to a page on its official website. The auction is part of a Feb. 23 series called “Infocalypse” that includes six physical and six digital items related to the famous book.

The original manuscript is in Lot 2 of the series. It is “wrapped in original Xerox 4200 Paper,” secured with masking tape, and contains “corrections and notations throughout in Neal Stephenson’s hand in blue ink.” It also has the title of the book written on the spine with a sharpie by the author.

A “revised typesetting manuscript” is also up for auction in Lot 4. This is a later version filled with additional handwritten notations and revisions by the author.

Other physical objects being auctioned as part of the series include the original painting used as cover art for the 1993 mass-market paperback edition of the book, a leather jacket that was to be used in a video promotion for the graphic novel, slides used for the graphic novel concept, and a real sword inspired by the one the book’s protagonist wielded.

In addition to these physical items, the series will also contain digital art NFTs inspired by the graphic novel concept that preceded Snow Crash.

Related: ApeCoin leads in NFT and metaverse market share, but is it sustainable?

Published in 1992, Snow Crash is set in a dystopia where most human beings live in small storage facilities. It follows the exploits of protagonist Hiro, a pizza delivery man who has to fight off bandits to deliver his pizzas. Hiro spends all of his spare time in a virtual world called “the Metaverse,” where citizens go to escape the misery of everyday life. But a computer virus causes residents of the Metaverse to become “nothing more than a jittering cloud of bad digital karma.” The plot of the novel revolves around Hiro’s attempts to figure out how to stop the virus.

The book has sold over 1 million copies in North America alone, according to the Washington Post. Since the book’s release, virtual reality enthusiasts have increasingly used Stephenson’s “metaverse” term to describe the emerging virtual world being created by virtual reality technology, and in recent years, it has become a frequently searched buzzword.

The rise of the metaverse has led to new career opportunities for some and has helped to reshape Web3 gaming.

Update (Feb. 23 at 9:45 pm UTC): This article has been updated to correct the number of copies of Snow Crash that have been sold.

10 emerging technologies in computer science that will shape the future

Discover 10 emerging technologies in computer science that are set to shape the future, including quantum computing, extended reality and robotics.

Technology is a powerful force that has significantly influenced the future. It has enriched our lives in innumerable ways, from boosting productivity and efficiency to bridging geographical distances. Artificial intelligence (AI), machine learning (ML), robotics and 5G networks are reshaping industries, opening up new applications, and altering our way of life.

For instance, precision medicine is enabling patient-specific therapies, and driverless vehicles promise to decrease traffic accidents and increase mobility. However, technology poses new problems such as employment displacement and cybersecurity concerns, but with good planning and management, technology can continue to advance and help create a better future for everyone.

Here are 10 emerging technologies in computer science that will influence the future.

Artificial intelligence and machine learning

AI and ML are changing the way people interact with technology. They’re driving automation, creating intelligent systems, and enabling new applications in fields such as healthcare, finance and transportation.

Moreover, artificial intelligence and machine learning can be used on blockchains for various purposes, such as fraud detection, risk assessment and predictive analytics. AI and ML algorithms can analyze large amounts of blockchain data to detect suspicious activity and anomalies and make predictions about future trends. They can also be used to automate certain processes, such as smart contract execution and asset management.

Quantum computing

The promise of quantum computers is that they will be able to tackle issues that traditional computers cannot. They use quantum bits (qubits) to carry out calculations concurrently and exponentially more quickly than conventional computers.

One potential use case of quantum computers is in the field of cryptography, where they could be used to break certain types of encryption that are currently considered secure on classical computers. It is because quantum computers are capable of doing some calculations significantly faster than conventional computers.

Blockchain technology

Blockchain technology’s primary use case is the creation of decentralized and secure digital records that can be used for various purposes. One of the most well-known applications of blockchain technology is in the creation of cryptocurrencies like Bitcoin (BTC), which are digital assets that can be used as a medium of exchange

As blockchains provide trustless and decentralized systems, they enable secure and more effective transactions, particularly in banking, healthcare and supply chain management.

Internet of Things (IoT)

IoT refers to the process of connecting physical objects to the internet so they can communicate and collect data. It has applications in fields such as manufacturing and healthcare and can be found in smart homes and wearable technology.

Related: The Internet of Things (IoT): A beginner’s guide

Biometrics

Biometrics involves the use of physical or behavioral characteristics, such as fingerprints or facial recognition, for identification and authentication. It has potential applications in areas like banking, healthcare, metaverses and law enforcement.

Related: What is Humanode human-powered blockchain?

5G networks

The next generation of wireless networks, or 5G networks, offers higher speed and reduced latency than 4G networks. They have the potential to enable new applications like remote surgery and smart transportation systems.

Augmented reality (AR) and virtual reality (VR)

Augmented reality and virtual reality have the potential to enhance the user experience in various fields, including gaming, education, training and entertainment. Users can interact with digital things in the actual world using AR technology, for instance, and can completely immerse themselves in a virtual environment using VR technology.

AR and VR can be applied to improve customer contact and engagement with goods and services. For example, AR can be used in the retail sector to create virtual product displays, while VR can be utilized in the travel sector to generate virtual tours of locations.

Edge computing

Instead of delivering data to a central server, edge computing processes it at the network’s edge. This makes it ideal for applications like self-driving cars and smart cities because it can result in quicker processing times and less network congestion.

Edge computing is well-suited for self-driving cars because it allows for real-time processing of the vast amounts of data generated by the car’s sensors and cameras. It can process this data locally, at the “edge” of the network, allowing the car to make faster and more accurate decisions, improving safety and reliability. Additionally, edge computing can enable self-driving cars to function even in areas with poor connectivity because it can operate independently of the cloud. 

Extended reality (XR)

XR, which encompasses virtual, augmented and mixed reality technologies, has the potential to shape the future of work in several ways:

  • Remote collaboration: Remote collaboration is made easier with the use of XR technology, even when team members are located far. Remote teams can collaborate in a shared virtual workspace using virtual reality and augmented reality, which offers a more immersive experience than video conferencing.
  • Training and education: XR can be utilized to create immersive learning environments that let students hone their abilities in a secure setting. This can be especially helpful in industries like manufacturing or medicine, where VR and AR can be used to imitate operations and provide on-the-job training, respectively.
  • Design and prototyping: XR technology can also be used for product design and prototyping. For instance, virtual prototypes can be made with VR, enabling designers to view and test their concepts in a 3D environment.
  • Customer engagement: More immersive experiences for customers can also be offered through XR. While VR can be used to offer virtual tours of real estate properties or travel locations, AR can be utilized to create interactive product displays.
  • Accessibility: XR technology can make certain work experiences more accessible to people with disabilities. For those who are unable to travel du to physical restrictions, VR can be used to create virtual travel experiences.

Robotics

Robotics involves the design, construction and operation of robots that can perform tasks autonomously or with human guidance. Although robotics has been employed in manufacturing and logistics, it has potential uses in industries, including healthcare, agriculture and exploration. 

The use of autonomous drones for crop monitoring and management is one example of how robotics is used in agriculture. These drones may be fitted with cameras and sensors to gather data on crops, such as growth rates, soil moisture content and plant health. 

Machine learning algorithms can then be used to examine this data in order to improve crop management techniques like the application of fertilizer and pesticides. Drones can also be used to plant and harvest crops, lowering the demand for manual labor and boosting productivity. Overall, robots have the promise of enhancing agricultural production and sustainability while decreasing costs and raising yields.

How AI can make the metaverse a more interactive space

The metaverse will likely impact physical and social interactions, with artificial intelligence a critical factor in this shift.

The potential behind the metaverse is becoming greater as virtual and physical worlds converge. Market intelligence firm Contrive Datum Insights recently found that the global metaverse market is estimated to surpass $1.3 trillion by 2030. According to the study, this growth will be driven by newly adopted virtual economy trends, combined with the rise of both crypto and online games.

Additionally, a recent survey conducted by CoinWire highlighted that the metaverse would likely reshape social lifestyles. CoinWire found that 69% of respondents believe that the metaverse will eventually modify social lifestyles due to new approaches taken for entertainment and activities.

AI will make the metaverse more interactive

Cathy Hackl, author of Into the Metaverse: The Essential Guide to the Business Opportunities of the Web3 era, told Cointelegraph that the metaverse comprises virtual shared experiences that happen both in virtual spaces and in the physical world: 

“It’s just that the physical world side of the metaverse equation hasn’t been fully enabled. It’ll come in the next 10 years. If you take that into account, then how we socialize will be deeply impacted by the metaverse.”

Hackl elaborated that technologies such as volumetric video — a technique that offers a more immersive experience by capturing three-dimensional spaces — will likely change how individuals communicate. “For example, this may help us feel more present when our loved ones are far away,” she said.

Hackl added that artificial intelligence (AI) would help create more interactive metaverse environments moving forward. Although the concept of AI and the metaverse is relatively new, some examples today demonstrate how this may play out.

For instance, Sebastien Borget, co-founder and chief operating officer of The Sandbox — a popular decentralized virtual world — told Cointelegraph that over 1 million users played games in The Sandbox last year. Borget believes that users of The Sandbox have become familiar with using avatars to showcase their digital identities. He said:

“In The Sandbox, users can connect with their digital identity, make friendships and have real emotions through these experiences. It doesn’t matter the background, age or where users are from. The Sandbox is a global, digital nation.”

With this in mind, Borget is aware that metaverse platforms have the potential to reshape social lifestyles. “Three billion people are now digitally native — there is no way back from that. The way to interact is now with avatars in social worlds and across social media platforms,” he said.

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While this may be, Borget shared that The Sandbox users will eventually be able to incorporate their own physical movements into their digital avatars, resulting in more personalized and realistic characteristics. Borget explained that The Sandbox would partner with Kinetix, a technology startup specializing in AI, to bring “emotes” — animations that express emotion — to video games and virtual worlds.

Yassine Tahi, CEO of Kinetix, told Cointelegraph that emotes will allow users to animate avatars through customized dance moves and physical interactions displayed in reality. “We have developed a unique AI that allows users to record movements with a phone’s camera, which can then be applied to avatars,” he said.

According to Tahi, emotes are important for recreating social interactions. “In the future, people will want to embody the physical world to behave in certain ways in virtual worlds. For instance, if someone falls during a runway show in the physical world, this can be recreated in the metaverse with avatars using emotes.”

Example of emotes being applied to avatars. Source: Kinetix

In addition to emotes, using AI to implement voice characteristics may also help deepen interactions within digital worlds. Sabin Dima, CEO of Humans.ai — a layer-1 protocol built on top of Cosmos — told Cointelegraph that AI would play a massive role in the metaverse when creating better user interactions. “Humans.ai is the blockchain of AI and is being used to mint ‘superskills’ and voices that users can apply to avatars within different virtual worlds,” he explained.

According to Dima, creating a digital voice or allowing avatars to speak in different languages will increase social engagement and improve experiences. To put this in perspective, Dima shared that Humans.ai lets users create digital voices, speak in different languages and implement synthetic voices that may prevent discrimination.

“You can enter a zoom call with a different voice, for instance, which could prevent discrimination if you wish to remain completely anonymous. This will certainly reshape social lifestyles,” he said. Moreover, Dima noted that voices are minted as nonfungible tokens to give users true ownership of their voice clips.

Diana, Humans.ai’s Synthetic Avatar, is an example of generative AI technology which can be used for multiple use cases. Source: Humans.ai

Yat Siu, co-founder and chairman of Animoca Brands, further told Cointelegraph that he believes AI will enhance metaverse experiences. 

“One primitive example of this is chatbots. In video games, we constantly engage with non-player characters with rudimentary character development. AI changes this significantly. They will deepen and enhance engagement as well as create deeper meaning and utility to their related ownership of their assets in the metaverse,” he said.

Will metaverse interactions replace physical encounters?

While the metaverse has already started demonstrating how people can engage socially in virtual worlds, incorporating AI within these environments will likely create better engagement. Yet it remains questionable if social interactions in the metaverse will eventually replace physical engagements. 

According to Siu, individuals are already influenced by online experiences. Therefore, he believes that the metaverse will likely create deeper immersion moving forward. Given this, Siu noted that the metaverse will not replace real-life engagements but rather enhance these interactions.

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Dima added that the metaverse, combined with AI capabilities, will result in a digital transformation that could make individuals “smarter.” “AI will allow avatars to speak in different languages or be present in multiple spaces at the same time,” he said.

Yet while virtual worlds powered by AI will likely result in more realistic experiences, Hackl pointed out that the physical world remains a key part of the metaverse. She said:

“The future of the metaverse is about connected experiences that transcend the physical and virtual divide. They will just be experiences. The difference is that experiences will be augmented by technology.”

3 reasons why the MANA and SAND metaverse token rally could end soon

Apple’s rumored VR headset launch appeared to fuel a sharp rally in metaverse tokens, but data suggests that the momentum is unsustainable.

The metaverse hype that began in 2021 dissolved almost entirely by the end of 2022 as the top projects in the space, Decentraland and The Sandbox, lost 95% of their market capitalization. The most prominent reason for the fall was a lack of user growth. 

Still, the metaverse narrative is far from dead and will grow in the future. Reportedly, Apple will launch its virtual reality gear sometime in spring 2023. The announcement was a positive catalyst for Decentraland’s MANA and The Sandbox’s SAND, causing a double-digit price surge.

While there’s evidence of positive buying volume supporting the pump, the weak fundamentals of metaverse platforms and overheated market indicators suggest that the price pump risks reversing quickly.

The Apple pump-and-dump

Facebook’s (Meta) foray into the metaverse was one of the most prominent catalysts for metaverse tokens. The idea for Decentraland’s and The Sandbox’s growth is that a decentralized metaverse would flourish more than Meta’s centralized version.

However, the technology has yet to become popular among the masses. In 2022, the percentage of VR users among Steam gamers was less than 2%, and the usage has yet to grow over the past two years. This is discouraging for the technology’s adoption because the gaming sector was the first to embrace it.

The technology suffers from a fundamental issue where VR headsets are unsuitable for long hours. Studies have found that prolonged usage of headsets can cause mental health problems.

Apple’s recent VR news caused an uptick in metaverse tokens, but it doesn’t necessarily translate to the success of these projects. Samsung and Oculus, owned by Meta, already have devices on the market, raising the question about the potential impact of Apple’s new devices on VR adoption.

Poor usage data hinders the reality of a sustained metaverse token rally

Arguably, metaverse euphoria peaked in the last quarter of the same year when Facebook rebranded to Meta. However, the usage statistics of the two most popular metaverse platforms, The Sandbox and Decentraland, remained unimpressive throughout the price surge. Fewer than 5,000 unique active wallets (UAWs) were interacting with the smart contracts at the peak on both platforms.

The Sandbox unique wallet addresses interacting with a decentralized application’s smart contracts. Source: DappRadar
Decentraland unique wallet addresses interacting with a decentralized application’s smart contracts. Source: DappRadar

Since then, the usage has decreased even further, with fewer than 1,000 UAWs per day, reflecting terrible fundamentals.

Moreover, while the token prices have jumped, the nonfungible token sales for The Sandbox lands haven’t improved with similar prices and volume since the last quarter of 2022. It once again confirms that activity across the platform is uneventful.

Token dilution risks remain

Decentraland is also on the creditor list of Genesis, which filed for bankruptcy last week. According to the court filings, the defunct lending firm owes Decentraland $55 million.

However, according to Decentraland’s Discord, Genesis owes only $7.8 million. A community spokesperson added, “The Treasury remains healthy and the credit amount does not represent a substantial part of the Foundation’s treasury.”

The Genesis issue has been long known; thus, it’s possible that the organization might have dissolved the issue by now. However, it will likely affect the pace of its ecosystem growth, which is small to begin with.

On the other hand, the SAND token suffers from the risk of dilution due to monthly unlocks until the end of Q3 2024. If market conditions do not improve, some investors may be inclined to sell their portion of the tokens.

Despite its shortcomings, as long as there’s a possibility that the technology will become a part of the future, the market is continually going to appreciate the first movers in the space. The problem is long-term visions may not sustain short- to medium-term rallies.

MANA/USD daily price chart. Source: TradingView

The sudden spike after days of low volatility has caused the Relative Strength Index (RSI) metric to show overheated readings. The situation has become more challenging, as the price has been trading at resistance from the breakdown region of the FTX collapse.

Nansen data shows exchange inflows for MANA and SAND were $8.4 million and $12.6 million, respectively. It suggests that more investors moved to sell than buy into a positive breakout.

Nevertheless, the recent uptick in MANA was supported by healthy volume, as reported by data from analytics firm Santiment, which is encouraging for buyers. But MANA/USD must take out the $0.735 resistance and support area for continued upside.

SAND/USD daily price chart. Source: TradingView

A similar trading set-up for SAND sees resistance for the token at around $0.93. If buyers conquer this level for the metaverse tokens, we can expect the rally to continue. However, based on fundamentals and short-term risks, it remains unlikely that the price can break above the resistance. 

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Nifty News: Trump NFTs surge 800%, Yuga Labs blacklists NFT exchanges and more

Donald Trump’s NFT collection started strong but looked lifeless until a few days ago.

Trump NFTs daily sales surge by 800%

Former United States President Donald Trump’s nonfungible token (NFT) trading card collection has recently witnessed a massive resurgence in daily sales volume.

Compared to Jan. 17 sales volumes, Jan. 18 and 19 saw spikes of 800% and 600% respectively, according to market metrics aggregator Cryptoslam.

Some pundits believe the renewed interest could be due to his imminent return to social media networks, following reports that the former president was seeking to rejoin Facebook and Twitter ahead of the 2024 presidential election campaign.

The collection of 45,000 self-themed trading cards was launched on Dec. 15 and initially priced at $99 each.

Buyers of the collection were automatically entered into a sweepstake which included “1000s of prizes,” including one-on-one dinners, zoom calls and rounds of golf with the former President.

They quickly sold out and recorded daily sales volumes of over $3.5 million but plummeted to a baseline of around $26,000 by the end of 2022.

Yuga Labs blacklists NFT marketplaces

Bored Ape Yacht Club (BAYC) creator Yuga Labs has blocked secondary trading of its “Sewer Pass” NFTs on marketplaces that do not fully support creator royalties.

The NFT project was first announced on Jan. 12 and became available for minting on Jan. 17.

Only Bored Ape Yacht Club or Mutant Ape Yacht Club holders are able to mint the Sewer Pass, which acts as an entry pass to its new skill-based NFT game, called Dookey Dash.

A royalty is a fee that is taken from the price of a sale and sent to the content creator. Yuga Labs has been vocal about its opposition to broader shifts within the industry to royalty-free marketplaces.

The Sewer Pass has seen a high volume of trades on secondary marketplaces, with a floor price of 1.81 ETH ($2,809) and sales volumes of 15,627 ETH ($24,267,411), according to data from NFT Price Floor.

Based on Yuga Labs’ 5% creator royalty fee, secondary sales for the collection have already netted revenues of over $1.2 million.

Neopets raise $4 million to build metaverse

Virtual pet website Neopets — which was popular throughout the 2000s — has raised $4 million from gaming and blockchain investors with plans to create its own metaverse.

Some companies providing the funding are venture capital firm Polygon Ventures; investment firms Hasket Capital and IDG Capital; gaming company NetDragon Websoft; and the Ava Labs-run Blizzard fund.

According to the announcement, ‘Neopets Metaverse’ will be a play-and-earn virtual pet game based on the original and would allow players to “raise, care for, customize and battle with their Neopets” on the blockchain.

In the announcement, HashKey Capital’s investment director Xao Xiao notes: “We believe that GameFi plays a crucial role in the larger metaverse narrative, serving as the interactive layer in the value chain and a key driver of traffic across Web2 and Web3.”

Neopets was founded in 1999 and the company is hopeful that Neopets Metaverse will bring “the magic of Neopets in a positively fresh light to old-time players, as well as attract and nurture a new generation of Neopians.”

The community has had an underwhelming response to the announcement, with some suggesting its previous effort at creating a Neopets metaverse had been a flop.

The company had initially launched an NFT collection using the Solana network on Nov. 12, 2021, which allegedly went so poorly that it resulted in the hashtag #NoNeoNFT trending on Twitter.

Touch the metaverse, researchers say

A team of researchers from the National University of Singapore (NUS) has created a pair of haptic gloves that it believes can bring the sensation of touch to the metaverse.

The invention, called the HaptGlove, is an untethered and lightweight glove that will allow metaverse users to interact with virtual objects in a much more realistic fashion by conveying touch and grip.

A professor who is working on the HaptGlove. Source: NUSnews.

When users put on the HaptGlove, they can sense when their virtual avatar’s hand touches something, as well as tell how hard and what shape the object is as a result of the HaptGlove restricting the user’s finger positions.

NUS claims that the HaptGlove will also be useful in other areas, such as education and medicine, by allowing surgeons to prepare for surgeries in a “hyper-realistic environment” or giving students a hands-on learning experience.

The concept of haptic gloves is not new, with Meta working on their version. However, NUS claim that its gloves can provide users with a much more realistic sense of touch compared to others that exist today.

Those working on metaverse games have suggested that virtual reality is such an immature technology, it is difficult to incorporate it into metaverse products. Existing games like The Sandbox and Decentraland are yet to launch dedicated virtual reality clients.

More Nifty News:

On Jan. 18, NFT marketplace Rarible announced that it would expand its marketplace builder to include Polygon-based NFT collections. The builder will allow artists and projects to customize their marketplace, with its CEO Alexei Falin believing that community marketplaces would become the future of NFT buying and selling.

Crypto exchange Binance announced on Jan. 19 that it would tighten its rules for NFT listings, requiring sellers to complete Know Your Customer verification and have at least two followers before listing on the platform. The firm plans to “periodically review” NFT listings that do not “meet its standards” and recommend them for delisting.

Metaverse to possibly create $5T in value by 2030: McKinsey report

The success of Metaverse will rely on a greater focus on maximizing the human experience aimed at delivering positive experiences for consumers, end-users, and citizens.

While the 2022 bear market grazed off the excitement around the budding crypto sub-ecosystems such as nonfungible tokens (NFTs), the Metaverse remains well-positioned for long-term disruption. Considering the myriad consumer and business-centric use cases the metaverse could cater to, a McKinsey & Company report highlights the technology’s potential to generate up to $5 trillion in value by 2030.

For the Metaverse to reach its full potential, the report highlighted the need for four technology enablers — devices (AR/VR, sensors, haptics, and peripherals), interoperability and open standards, facilitating platforms and development tools. However, the success of Metaverse is weighed by a greater focus on maximizing the human experience aimed at delivering positive experiences for consumers, end-users, and citizens.

Metaverse impact by 2030. Source: McKinsey & Company

To date, metaverse initiatives around marketing, learning and virtual meetings have seen the highest adoption level across various industries. However, a majority of initiatives around Metaverse have seen low-medium adoption, according to an April 2022 survey on senior executives conducted by McKinsey.

Recommendations for Metaverse implementation. Source: McKinsey & Company

“The metaverse is simply too big to be ignored,” read the report as it highlighted the impact it can have on commercial and personal lives. McKinsey estimated that over 50 percent of live events could be held in the metaverse by 2030, potentially generating up to $5 trillion in value.

Related: LG Electronics’ latest partnership seeks to bring interoperable metaverse platforms to TVs

Metaverse is well positioned to host modern-day romantics, as one-third of surveyed singles showed interest in dating in the virtual world. According to a recent survey conducted by Dating.com, an online matchmaking platform:

“With advancements in dating app technology and the metaverse, more daters are open to making connections that span different cities, countries and even continents.”

With Metaverse in the picture, singles are open to dating people from different geographical locations.