Democratization Key to Metaverse's Success: Wedbush
The evolution of the metaverse will be characterized by decentralization of power, Wedbush analyst Michael Pachter wrote investors Friday. He noted the internet is led by large technology companies, including social media businesses, “that seek to control their environments and…
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profit off of their user bases (including through ad sales) without compensating those users proportionately.” In the metaverse, users will drive the space with user-generated content (UGC), including non-fungible tokens, he said. Creators can sell UGCs, “with the sale recorded on the blockchain and the user receiving compensation in the form of fiat money,” he said. Powerful creation engines and toolsets are lowering the barriers to entry for development for the masses, Pachter said, which should drive engagement “to levels far beyond those currently seen in gaming and elsewhere.” The metaverse will create new businesses and economies “with success likely proportional to the levels that the user base is incentivized to participate,” including through favorable financial terms, he said: “Greater participation will be a key element of the Metaverse’s ultimate success.”