Metaverse 1.0 Paradox

During the period of 2020-2022, the concept of the metaverse emerged on a large scale in the public consciousness, marking the era of Metaverse 1.0. Amid the FOMO atmosphere, various concepts related to it received excessive attention and participation. However, during market downturns, the speculative bubble accumulated during the hype quickly dissipated.

The reason lies in the fact that the Metaverse 1.0 concept lacked effective mechanisms to sustain long-term participation and activity of genuine residents (participants, builders, contributors, consumers). It only attracted short-term FOMO speculators through economic incentives. Without proper ecosystem support, over-reliance on speculative capital and short-term speculation led the development of the ecosystem astray from expectations.

The influx of speculators does not care about the long-term development of the ecosystem. They are primarily concerned with how to profit quickly through speculation. Therefore, there is a lack of content and mechanisms to retain genuine builders, leading to an unsustainable user base. With insufficient underlying technology and practical application support, it is difficult to form a complete loop, thus unable to support the long-term existence and self-iteration of the ecosystem.