Big Coffee 丨 Bubble or Opportunity? Put away this Meta-Universe Investment Guide

Last year, the metaverse concept swept the world, Facebook changed its name to Meta and announced a strategic transformation, pushing the metaverse concept to a climax, but the recent financial report released by Meta showed that its meta-universe development department lost more than $10 billion last year. Meta and a number of metaverse concept stocks plummeted, is there a bubble in the metacosm concept? How do you find value from your concept? Talk to Ji Yong, chairman of the Oriental Shengshi Group.

The leader of meta-universe is Meta, the parent company of Facebook, released its first financial report since the launch of Meta-Universe, which shows that last year, Meta's meta-universe development department Reality Labs (Virtual Reality Research Lab) lost $10 billion, then its revenue was less than $2.3 billion, and in the fourth quarter of last year, Reality Labs lost $3.3 billion. So now since the concept of metaversics was launched, in fact, this concept is very hot, and it has also caused a large influx of funds, but we see that it seems that the performance cannot stand up to verification. So first of all, I would like to ask you, do you think the metaverse is bubble now?

Ji Yongxian: Good question. It's true that it's a hot topic right now, and I believe that in recent years, from Ready Player One, the popularity of the metaverse, and then to the recent Meta or Roblox, they'll all go from a social platform, or from a multiplayer online game, and then take the metaverse as a whole from concept to a form. Then everyone is very concerned about their future research and development at the technical level, and to a market-oriented standard, what kind of business it is.

Of course, if it is from Meta itself MCN (multi-channel network) platform has Facebook has Whatsapp, there is IG (Instagram), it from a real identity a social platform, and then to create a virtual identity and a technical level of the road, certainly each layer has a huge investment, because its own scale is relatively large, and then the demand is relatively high, will also be invested in the future market above a standard.

But if you look at it from an economic point of view of the bubble, they must be possible in the future in the investment or loss, there is also a positioning of turning a loss into a profit, or in the short term in the investment investment on what profitable sector or business model, will bring a benefit to investors, relatively speaking, the risk of the bubble is not so high, but if it is Roblox is easier, because its starting point is already a virtual platform virtual a scene virtual role, If it's done from just a VR (virtual reality) or a more experience, its revenue may be a little less difficult than Meta. Then the market is definitely relatively low if there is an income of the game or a foundation of the game, and the relative bubble will be a little lower risk.

However, if there are some industries that may not have the basis of the industry, but from the concept to a form, the form is then transformed into a format, relatively speaking, the process will be difficult, because after all, who is the audience, or what is the return to investors, it may be in this aspect that everyone should consider more.

CBN: So do you think there are bubbles to be observed from the different industries in the metaverse concept, so how should we distinguish between these bubbles and those without bubbles?

Ji Yongxian: At the level of differentiation, in fact, the first is to discuss with the meta-universe combination of the industry, just said Meta, it is a social platform, relatively reasonable, the level of the game is also relatively easy for everyone to understand its a combination, may be more, for example, may be the future of smart phones, new energy vehicles or in the e-sports industry, and may cover some technical levels of the industry, new industries, relatively speaking, the combination will be more play scenarios, There are also virtual characters that will be a little easier.

CBN: Implemented in the field of application and technology.

Ji Yongxian: Yes, there are scenes.

CBN: So in which areas do you think the future application prospects of the metacosm will be relatively high?

Ji Yongxian: More can go down to the social benefits of the medical health, as well as cultural tourism, sports, these industries, the relative combination is relatively high, the audience is also relatively large, relatively speaking, a business model to improve, the transformation of enterprises and to an innovative milestone, is also relatively easy.

CBN: Your company also has some investments related to the metacosm, how do you choose the investment targets of these metacosms?

Ji Yongxian: In fact, our concept of investment in the meta-universe, we look at it from three directions, the first is the e-sports of the game, because after all, the starting point of the entire industry from Snow Crash (novel "Avalanche") to "Ready Player One", from a VR, AR (augmented reality) technology evolution, are from the game and e-sports one of the transformation, so the game's e-sports is our relative concern.

Then the second is the digitization of the industry, because many industries affirm that the traditional industries are transforming in the epidemic, not only transformation or innovation, which everyone may be more concerned about, it is definitely through the future digital economy, or in a more attractive platform in the metacosm, can bring us to the industry of a digital upgrade, this is some of our targets will also consider.

Third, just talked about the scene, the globalization of the scene, this is also an area that everyone may pay more attention to in many countries and many policies, and many markets in which enterprises and investors are more concerned.

Because after all, in which countries and which companies, their development is a regional, or a global, for the entire metaverse is after all a concept beyond the universe, and it attracts, we just said that the e-sports crowd, in fact, now Newzoo (game market research company) report has exceeded 2 billion people, the future 2023 will reach 35 billion, will be close to the overall population and proportion of the Internet, but also close to half of the global population. E-sports population, how many audiences, how much demand they need for life, this is our type of target will pay more attention, but also more to study the future investment (direction).

CBN: You talked about the direction of investment in the metaverse of three relatively large concerns, as an ordinary investor, do you think there are more easy to understand, easy to choose the target, such as some specific indicators, should we pay attention to the size of the company, the composition of the metacosm in the company's metacosm, or whether the company is profitable, how should investors consider these aspects?

Ji Yongxian: Let's first talk about the target of investment, ordinary investors should actually look at the long, medium and short perspective, short words are definitely now some may be relatively easy to buy, has been carried out a profit model to be able to trade the platform.

For example, some of them may be legal and compliant NFT (non-homogeneous tokens), it is really a large audience of a game skin, many fans he may not consume high, the risk is not high, and then he can also like the way to buy, this category will be easier to compare short-term investment targets, because the game skin revenue and its entire market size has been very mature, but also very large, and then in the medium term everyone will discuss, may be in some industries on the transformation, It definitely contains a technical level, this technical level must consider two things, the first is that it has to lose money, or we simply burn money, it has to burn more to turn loss into profit, because you may look at the middle of the year, it still has a state of time to turn loss into profit, this one is to see where that node is, if you can't see it, this is the risk.

In the long run, we must be from the perspective of the industry, the meta-universe it is now the entire format of the change is more, and then the space is also very large, for which industries are more than a demand for a life above, as well as to a society above the demand, the people's demand above, this is more important, if it is medical aspects of the long-term, these targets we also look at because the meta-universe after all, it is more creative, and then the audience is also more, we will definitely be a broken circle to drain the flow, To attract more technical talents to incubate an industry, or just to see this we are going to be very rational to look at the long-term metacosm investment.