Metaverse Disappointment: Turkish Investors Face Major Losses

MetaversePlanet August 22, 2024

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The Metaverse has resulted in significant losses for its investors, with Turkish investors facing the second-largest financial hit after Mark Zuckerberg. The combination of speculation and excessive expectations, which Elon Musk referred to as a “marketing gimmick,” led to substantial investments in Metaverse projects and digital assets, ultimately resulting in a steep decline in their value. Investors, who had anticipated high returns in the short term, were left severely disappointed.

The Metaverse, a concept built on the integration of technologies like virtual reality and augmented reality, has caused considerable financial damage to those who invested in it. The value of digital assets, such as land, bridges, and palaces purchased within the Metaverse, plummeted by 90 percent. Turkish investors experienced the most significant losses after Mark Zuckerberg, the founder of Meta.

In 2022, the Metaverse suffered a loss of approximately $14 billion, which increased to $16 billion in 2023. Elon Musk, who has expressed skepticism about the Metaverse and Web 3.0, described them as “marketing tricks,” sparking further debate on the topic.

Experts interviewed by ‘haberglobal.com.tr’ advised investors to adopt more realistic and long-term strategies. Meanwhile, the plight of those who suffered losses in the Metaverse remains a topic of concern.

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“Metaverse has been a big disappointment”

Informatics Specialist Prof. Dr. Ali Murat Kırık stated that Metaverse investments have lost 90 percent of their value, with Turkey experiencing significant losses in this sector. “Speculation and excessive expectations, which Elon Musk described as a ‘marketing trick,’ led to large investments in Metaverse projects and digital assets losing their value. The Metaverse, where investors anticipated high returns in the short term, has been very disappointing,” he said.

Prof. Dr. Kırık also outlined the reasons behind the strong interest of Turks in the Metaverse:

“Turkey’s young and tech-savvy population has a keen interest in digital trends. Particularly, the popularity of digital games, social media, and virtual reality has accelerated the adoption of the Metaverse. Additionally, the economic conditions in Turkey and the need for diversification in investment options may have driven people towards new and potentially profitable opportunities.”

Cyber Security Expert Osman Demircan emphasized that the Metaverse was never intended to be an investment tool. He explained that concepts like digital assets and digital artworks emerged with the rise of NFTs. “Land in the Metaverse began to be sold as NFTs, leading to the belief that ‘if we buy now, it will be highly valuable in the future.’ Turkish citizens viewed it as an investment opportunity, much like land in the physical world. Unfortunately, the reason Turks suffered such substantial losses—up to 90 percent—was because they didn’t want to miss out on what seemed like a promising opportunity,” Demircan added.

“People’s perception of reality will be destroyed”

Technology Expert Tanol Türkoğlu, however, argued that reducing the Metaverse to merely buying and selling virtual land is a form of “digital lumpenism.” He stated, “Just as the value of land in the physical world depends on various economic and political factors, the same applies to digital land. When the true 3D Metaverse eventually replaces today’s internet, it will be far more significant than the loss of a few plots of virtual land. People’s perception of reality will be fundamentally altered.”