Why the tech sector needed to lose trillions to deliver higher value
October 28, 2021 unofficially began the Web3 and Metaverse hype cycle as organizations of every size rushed for any connection they could tout to investors, influencers and media. Suddenly it was 1999 again as CEOs touted visitors, engagement and buzz while talking around or ignoring ROI impact sales, costs or business value.
The rush to be first meant finding the fastest and easiest shortcuts for a company to announce its Web3 leadership. Companies launched NFTs that weren’t actually Blockchain-based. Many of the 21,844 cryptocurrencies in circulation “are inactive or completely worthless.” Roblox convinced companies, such as Hyundai, to share the same platform as sex games targeting kids, pooping simulators, and horrifically racist games.
By Q4 2022, NFT trading volume plummeted 97%, FTX lost $8 billion of its customers money, Meta lost half its value and I have yet to see a CFO brag about its Roblox sales. Investors who questioned how shipping 40lb bags of dog food could make money in 2001 are now the ones asking each tech leader about their long-term business strategy. The resulting consolidation, regulation and investor expectations today will ensure the Web3 equivalents of Amazon, PayPal and eBay emerge for the long-term.
Where do you think the tech sector ends 2023?
Opmerkingen