Quicktake:

• Brand Engagement: Despite fading hype, consumer brands are still active in the metaverse.
• Valuation Milestones: The Sandbox recently achieved a $1 billion valuation.
• Avatar Antics: Initial experiences in Decentraland highlight ongoing technical challenges.
• McDonald’s Metaverse Moves: The fast-food giant launches its second metaverse experience, targeting new markets.

Returning to Decentraland, I encountered a whimsical mix of avatars, technical challenges, and insights into the metaverse’s evolving landscape. Despite the waning hype, major brands like McDonald’s continue to experiment with these digital spaces, revealing persistent interest and potential.

My journey began in a simulated traditional Chinese village within Decentraland. However, what should have been a peaceful exploration quickly turned into a troubleshooting session when a giant red prawn avatar fell from the sky, trying to converse with me. Unable to hear each other, we resorted to using Google Meets in the background. This encounter set the tone for my exploration of the current state of the metaverse and its business prospects.

The prawn, adorned with blue and yellow wings and an Ethereum logo floating above his head, immediately critiqued my avatar’s drab appearance. In contrast to my default attire, he suggested I needed a new outfit and even offered some of his digital castoffs. This highlighted the continued emphasis on personalization and creativity in virtual environments.

Despite my avatar’s unimpressive look, Decentraland itself hadn’t changed much since 2021. The platform remains basic and occasionally buggy, yet it retains its appeal for those who enjoy building and exploring digital worlds. The high cost of land NFTs continues to be a barrier for many, but the potential for creativity is undeniable.

In 2021, Facebook’s rebranding to Meta aimed to position the metaverse as the future of digital interaction. However, Meta’s legless avatars and other quirks didn’t resonate well with the public, turning the metaverse into a subject of mockery. Yet, platforms like Decentraland and The Sandbox continue to develop quietly.

The Sandbox, operated by Animoca Brands, was recently valued at $1 billion following a $20 million fundraising deal, demonstrating significant investor confidence. Decentraland, valued at $1.2 billion in 2022, also shows that there is still substantial interest in these virtual spaces. Even older platforms like Second Life, founded in 2003, maintain a dedicated user base, with around 750,000 monthly active users as of 2023.

The persistent interest from major brands is particularly noteworthy. In May, Visit Wales announced an immersive experience on the Spatial platform, showcasing diverse applications of metaverse technology. Meanwhile, McDonald’s has launched its second metaverse experience, targeting the Singaporean market after a previous attempt in Hong Kong.

Last year, McDonald’s created McNuggets Land in The Sandbox, aiming to engage the Hong Kong market. Despite encountering bugs that crashed the site, the initiative demonstrated the brand’s willingness to explore new marketing channels. This year’s metaverse venture, however, was inaccessible from Hong Kong, leading me to Decentraland to meet the creator behind it.

The giant red prawn turned out to be Clarence Chan, founder of Bandwagon Labs, a digital marketing studio in Singapore that builds metaverse experiences for brands. Chan, who even got married in The Sandbox in 2022, embodies the deep connection some individuals have with the metaverse. As we strolled through Decentraland with his team, including a punky-looking angel and a dude wearing shades, Chan shared insights on why brands are continuing to invest in metaverse experiences.

“All brands already have their own social media presence,” Chan explained. However, social media is a crowded, pay-to-play market. In contrast, the metaverse offers a less congested space for brands to connect with audiences in novel ways. “There’s so much noise on social media,” Chan noted. “Many brands and events are all vying for the same space on a user’s timeline.”

This ongoing interest from brands, despite the technical challenges and the metaverse’s mixed reception, highlights the potential for these digital spaces. Whether it’s for marketing, social interaction, or digital creativity, the metaverse continues to offer unique opportunities. The persistence of platforms like Decentraland and The Sandbox, coupled with brand initiatives like those from McDonald’s, suggests that the metaverse may still play a significant role in our digital future.

In conclusion, my return to Decentraland underscored both the challenges and potential of the metaverse. While the initial hype has faded, major brands remain committed to exploring these virtual worlds. As technology improves and more users engage, the metaverse could become an integral part of digital marketing and social interaction. The journey from whimsical avatars to strategic brand engagement illustrates the evolving nature of the metaverse and its enduring appeal.