Metaverse Launches: The Successes to the Messes

The Metaverse has been on everybody's lips.

And while the explosive momentum of crypto and Web3 drove many into the space with a fast and dirty growth mindset, the current Bear market has caused pause. It's now doing what Bear markets do best: weeding out the projects that failed to find real product market fit and utility, and pushing those who are centering on consumer needs to refocus and find that space.

On the flip side of this, you have legacy brands and the big spenders (hey XR tech) continuing to make big moves in the space and driving it forward. But, where does this leave smaller companies interested in launching? And what about those who've been interested, but haven't yet taken the dive?

Well first, it leaves you to do what projects should have been doing. Making sure that a Metaverse launch is right for you, your product and services, and, perhaps most importantly, your users.

We'll take a look at some of the best and worst Metaverse launches to understand what went so right…or so wrong, and a few of the takeaways that you can apply to your own situation.

The Successes

While we might still be waiting for the fully immersive, interoperable Metaverse of SciFi, the early movers in this space have still managed to make an impact…and help grow their brands.

These journeys vary vastly, but that should be expected given the number of industries that successful Metaverse launches pull from. And, perhaps, the bigger split, between Metaverse-native brands and legacy brands that opt to enter into the Metaverse.

But, bottom line, this nascent space offers a world — a universe even — of opportunity. But, some basic understanding of the tech, user base, and changing customer demands is essential…and then learning how to apply that to your own case.

Decentraland

As one of the first-movers to combine blockchain, opensource, and 3D elements, Decentraland can't be left off the list.

The launch of Decentraland was a slow one, but given the size of the undertaking and the fact that much of this territory was completely uncharted, it's to be expected. And, while the launch was years in the making, the enthusiasm for the promised vision was achieved much faster. In 2017, when the team opened their ICO, it took only 35 seconds for all of the land parcels to sell out.

But, Decentraland hasn't been lazy about their launches. In 2020, when the Metaverse finally opened their doors to the public, they partnered with other notable projects in the space, like CryptoKitties and Axies, as part of a grand treasure hunt. And, in the gap between the ICO and the public launch the team rolled out a Software Development Kit (SDK) and a LAND Marketplace, which essentially handed over creative freedom to users.

While the project still struggles with lags and glitches, on top of a fairly high computational power demand, the overall project is visionary, and continues to pull interest and build exciting new developments.

What went right?

• First mover
• Great team
• Merged blockchain, open source, and immersive elements
• Collaborations

What went wrong?

• Tech limitations

The Specs

Gucci

The oldest brand on this list, and one of the first legacy brands to start making moves in the Metaverse, Gucci definitely charts a path to follow.

They've done a lot, from multiple NFT collections, collaborations, their own store in the Metaverse, to even setting up a separate brand — Gucci Vault — to head their Metaverse-related activities.

Why set up an entirely new arm, you might ask? First of all, the Metaverse, while not inherently embroiled in Web3 and blockchain ethos yet (just take a look at Meta), is heavily grounded there. This means that users are going to want a stake in things. While you can definitely use your digital fashion to show off in the Gucci Gardens on Roblox, many will also want to use their digital assets for branding…meaning that brands might have to give up Intellectual Property. While this is not something that Gucci has done yet, by setting up Gucci Vault, they carve out space to be more creative and take slightly bigger risks without necessarily risking all of the hard work and IP that is behind the traditional Gucci brand.

For particularly strong legacy brands, a new Metaverse arm might be just the thing to test the waters, enabling a bit more playfulness than might align with the partner brand — the type of activity that is expected in the Metaverse.

What went right?

• Experimental arm
• Multiple collaborations
• IRL reputation in digital spaces
• Direct-to-Avatar

What could go wrong?

• Decentralized ownership/business models

The Specs

Spatial

Spatial is an XR platform. Initially launched to create VR headsets and XR platforms for more holistic digital work environments, this company has proved very adaptable.

While their headsets and XR have been well received, the company expanded to be able to service a much larger audience. Why? Not everyone has a VR headset…or plans to buy one in the next year.

So, spatial incorporated NFTs, a focus on creators, and more entry points to their platform. They still create immersive environments, specifically geared towards work and exhibitions, but, now, with the focus on building immersive NFTs, they are creating Metaverse real estate that can be rented or owned, and in the future, should work across many different metaverse apps.

And, on top of that, people can come together whether they have a VR headset, are joining from a desktop, or even access these digital spaces via their smartphone. With phones as one of the most ubiquitous technologies that many of us carry 24/7, building in mobile entry points to the Metaverse just makes sense.

Ultimately, Spatial makes the list for what I see as two successful launches: their first into VR headsets and environments and their second incorporating NFT, virtual real estate, and more entry points. And, this has been a success according to Founder, Agarawalla, who noted in an article for CNET:

"Recently the growth has been amazing. I think it tripled in the last month alone, and it's going straight up."

What went right?

• Multiple access points

• Focus on business opportunities

• Collaborations

• NFT

What went wrong?

• Adoption of VR tech

The Specs

There are actually a good number of great Metaverse activations. If you want to keep exploring, check out:

• Bored Apes Yacht Club
• Fortnite
• Somnium Space
• Nickelodeon
• Nike + RTFKT
• The Sandbox
• Roblox
• And many, many more!

The Messes

To be completely honest, the successes have been much easier to chart than the messes. And, well, who wants to advertise their failures? Or has the resources and time to do so. That being And, even though it was harder to find the messes, that's not to say that the Metaverse doesn't pose some challenges for brands looking to set up shop.

This is a space that demands you reimagine how you (as a brand) position yourself and your interactions with users….largely from a more collaborative standpoint. And, not everyone has nailed this.

Meta Horizon

There is room for disagreement. Unarguably, Meta had the spashiest arrival at the door of the Metaverse with the announcement of their rebranding quickly topping headlines and still garnering a mention in seemingly every other article about the Metaverse.

In addition to this, Horizon Worlds, their actual metaverse arm, does have some legs to stand on (although, ironically not actually in Horizon Worlds, where the avatars are legless?) — namely the fact that this is the only metaverse platform built for a genuine multi user experience and can host the most number of users.

But, all the same, reactions to this launch have typically been negative. Given Facebook's user base and the funds behind the product, the overall read has been subpar.

But, beyond complaints about the low-fidelity of Horizon (the bar is also higher here, but look at the resources invested), many of the complaints and concerns lie in the overall ethos of the Meta empire. And these are things that we should be worried about.

Essentially, Meta is the pinnacle of missing the assignment when it comes to understanding new brand<>user relationships. Let alone the Web3 inspired-trend to give users the chance for IP ownership (think BAYC) or even project ownership (think DAOs), Meta remains firmly committed to retaining ownership over user data, rather than the other way around. This could paint a dark picture for our future and the rapid expansion of surveillance capitalism in far more invasive ways. But, whether this will be enough to keep Facebook's nearly 3B users from migrating to Horizon remains to be seen. I mean, looking at the outrage and then lack of momentum post Meta's acquisition of Whatsapp doesn't bode well for user privacy and data ownership in the Metaverse.

All of this, as well as the recent loss of the Horizon VP, Vivek Sharma, leave a lot of unanswered questions. And, the reception, while enthusiastic, has been to enthusiastically bash the platform. What can we say, the people love to hate the Zuck.

What went wrong?

• Creator integration
• User integration
• Fidelity
• Game play
• Moderation & safety
• Entry point/cost of tech

What went right?

• Meta's existing user base

The Spec

FN Meka

With the extreme successes of some artists' virtual concerts, like Travis Scott's performance in Fortnite back in 2020, where he was rendered as an avatar and made $20M with a 10 minute performance, it's no surprise that other artists are jumping on this opportunity. (Cut out jet lag from touring, anyone?)

FN Meka takes this even farther as a fully VR, AI-generated rapper. While the stats look good, this fell apart when the pitfalls of AI — the fact that biases are often coded directly into algorithms or arise from the data itself — arose.

What went down? The rapper presents as a Black avatar, and was created by Factory New, a "virtual record label" created by two white men. (This is relevant later on.) Although the rapper was created back in 2019, it wasn't until August 12, 2022 that it was signed by Capitol Records and finally released a debut. Just 11 days later, Capitol records dropped FN Meka after backlash due to repeated use of the N-word, appropriating Black culture, and mocking police brutality, and going back to the creators, digital blackface.

Capitol Records has since apologized to the Black community for "insensitivity in signing this project without asking enough questions about equity and the creative process behind it."

What went wrong?

• Flaws in tech
• Positioning
• Internet clout/relevancy

What went right?

• Demand
• Interest & intrigue

The Specs

Shib — The Metaverse

This particular instance goes to show that just because you are a Web3-native project, does not mean that you are guaranteed to succeed in the Metaverse.

Growing off the back of Internet culture, the Shib token saw massive popularity and gains throughout 2021. But, with the announcement of the impending launch of their own metaverse, there are several things that stand out to the wary investor. Namely, though, it's Shib's attempt to rebuild the wheel at every turn.

The launch of Shib: The Metaverse is contingent on the successful launch of Shibarium, their Layer2 solution. As an Ethereum project, this Layer2 is designed to lower transaction fees and lag times. But, this takes time, and will set their metaverse years behind the development of players already active in the space, like Decentraland and The Sandbox. How the Shib ecosystem will gain a leg up on these two is unclear, on top of the roadmap, which features milestones, but no hard dates.

What went wrong?

• Timeline

• Product Market Fit

• Timely entry

• Competitive edge

What went right?

• ShibArmy

The Specs

Tl;dr

Well, this should technically be at the top, but, I'll give it to you down here.

For a successful Metaverse launch, you need to take several things into consideration. Some are basics that if you have any decision-making power in a company should already be factored in, like:

• User needs and benefits
• Digital fit.

And others that are a bit more of a sliding scale, like:

• Expected user reception
• Cost
• Collaborations or build your own
• Balancing traditional business models with emerging decentralization efforts.

There are many more, but this, and the examples cited above, can begin to paint a picture of where to start if you think the Metaverse is the right step for your brand. There are endless opportunities — literally, waiting to be created by innovative minds — whether you want to break into the Metaverse as a legacy brand or start from scratch and build your Metaverse-native project.

All this takes is an innovative mind and good grasp on the potential and expectations….and potentially budget.

If you want to start building with guidance from some of the leading experts in both the space and Metaverse activations, apply for our Metaverse Foundations course. Taught by Enara Nazarova, a Top 30 Voice in the Metaverse, you'll cover everything, from the complex tech stack and how to make sound decisions when building your project, to building your own GTM strategy with expert advisors.

Learn more about the Metaverse Foundations course for brand builders here!