In this episode, we discuss cryptocurrency advertisements during the Super Bowl, Disney bringing in Mike White to lead its Metaverse strategy, YouTube making a commitment to the metaverse, Wall Street struggling to help expand the metaverse, JPMorgan opening a lounge in Decentraland, Salad Ventures raising over $13.5 million in a private sale round, and so much more!
Episode 13 Keywords: cryptocurrency, advertisements, Super Bowl 56, Disney, Mike White, Metaverse, YouTube, Wall Street, JPMorgan, Decentraland, Salad Ventures, funding
Welcome to the metaphysics podcast. The Metaverse and web three are bringing about the
Unknown:biggest revolution since the internet itself. With your hosts Paul the prophet Dawalibi And Jeff the
Unknown:juice Cohen. We will be bringing you the latest Metaverse, business news and insight into what it
Unknown:all means. The meta business podcast starts now.
Paul Dawalibi:From the boardroom to the metaverse. This is the meta business podcast. I am
Paul Dawalibi:Paul Dawalibi. I'm joined today by my friend and co host, Jeff the juice Cohen. For those of you
Paul Dawalibi:who are new here, welcome to the official podcast of the metaverse. What we do is we cover the most
Paul Dawalibi:pressing Metaverse news from the week, but we look at all of it through a business and C suite lens,
Paul Dawalibi:we dissect, we analyze the business implications of everything happening in this Metaverse space.
Paul Dawalibi:If you're a regular listener, thank you for tuning in every week. This is episode 13. Lucky 13. We
Paul Dawalibi:really appreciate it. If you're if you've been a listener from the start. If you haven't, no
Paul Dawalibi:problem either. Make sure to rate the podcast leave a five star rating or review if you love it.
Paul Dawalibi:Share it with your friends. That's how other people discover the podcast. Jeff, how you doing
Paul Dawalibi:this week?
Jeff Cohen:I'm doing good. It's a nother week here. We got a lot of a lot of news feel like
Jeff Cohen:every week. You know, I always think it's gonna be hard to find stories and it's almost like it's
Jeff Cohen:it's you don't even have to try. It's we're talking about them in our Discord all week. And
Jeff Cohen:it's kind of there's always stuff and that's why this is the best half hour of my week typically.
Paul Dawalibi:Good reminder, by the way, if you love discussing Metaverse stuff and you love the
Paul Dawalibi:podcast, make sure to join our Discord. We have a community discord. Its discord.gg/meta TV. It's
Paul Dawalibi:all kinds of gaming crypto Metaverse, news discussion in there, and some off topic stuff as
Paul Dawalibi:well, obviously, but great community in there. So make sure to join. I mean, Jeff, you're right. The
Paul Dawalibi:metaverse. Arguably the crypto side of the metaphors was really in your face if you even had
Paul Dawalibi:a pulse this weekend. Superbowl weekend obviously. And, you know, I figured we'd kick off with this
Paul Dawalibi:kind of fun story, talking about all of the crypto sponsors of the Super Bowl. And this obviously
Paul Dawalibi:this article came out before the Super Bowl actually happened. We're now recording after but
Paul Dawalibi:says crypto ad set to invade Super Bowl 56. The massive sports marketing pushed by crypto
Paul Dawalibi:companies has never been as evident as it will be on your TV during Super Bowl 56. And it lists a
Paul Dawalibi:bunch of the the you know the different companies who activated FTX $32 billion company now. Crypto
Paul Dawalibi:derivatives exchange, crypto comm Coinbase binance FTX, and it says here FTX and crypto comm may not
Paul Dawalibi:be the only names we see in the Superbowl. Obviously, there was a ton of crypto advertising,
Paul Dawalibi:the Lakers play in the crypto.com arena. Right. There's a lot of mention of activations obviously
Paul Dawalibi:outside of just the Super Bowl. But are you surprised that the Superbowl was sort of infested
Paul Dawalibi:with crypto advertising?
Jeff Cohen:No, not at all. I mean, these companies have so much money and it's a little bit
Jeff Cohen:of a land grab with a lot of these platforms. So it makes sense that they have the dollars to get
Jeff Cohen:out there. And where better to spend them than the Superbowl where everyone's eyes are on it. I did I
Jeff Cohen:think I tweeted this week that it it was a little bit reminiscent maybe of the.com era where you
Jeff Cohen:sort of saw a lot of these.com spending money, maybe frivolously are foolishly on Superbowl ads.
Jeff Cohen:So hopefully that's not the case where this sort of represents the top or near term top in the
Jeff Cohen:market. Just symbolically, but yeah, no, I think I think it makes a lot of sense. I'm curious which
Jeff Cohen:one I guess I have two questions first, which one which one was your favorite? Because I have one in
Jeff Cohen:my mind.
Paul Dawalibi:I think it was the so I'm not a big football guy. So I don't really watch too much of
Paul Dawalibi:the civil However, I did think the I think it was crypto.com that did the one with LeBron.
Jeff Cohen:Yes. So that actually was my third favorite of the three. So that
Paul Dawalibi:was clever because it involved like a younger digital version of LeBron which I
Paul Dawalibi:thought you know, the techie and me appreciated that.
Jeff Cohen:Yeah, I wonder like a game engine. It looked like it was it was almost like built in
Jeff Cohen:Unreal or something.
Paul Dawalibi:But the tagline was clever too. I think it was something like Fortune favors the
Paul Dawalibi:bold or something like that. Yeah, it was clever. Sorry. We were
Jeff Cohen:the two that I feel like people were really buzzing about. The first one that got a lot
Jeff Cohen:of attention was the one with the the flashing around the skirt with a cute the QR code. It was
Jeff Cohen:Coinbase. Basically the whole is a QR code on the screen and via I broke the internet. I guess my
Jeff Cohen:question was to you, do you think that was on purpose? Because I saw a lot of tweets back and
Jeff Cohen:forth like, Oh, this is such a bad thing that the website went down it shows how would you want to
Jeff Cohen:give your money to them? Like they can't support the load? Like, did they not expect this? Almost
Jeff Cohen:like what you hear when a game launches? And it's in the servers go down? And I heard other people
Jeff Cohen:say, Well, no, it was odd. They obviously plan for this out. And it was like, they want to show how
Jeff Cohen:much demand there wasn't, Oh, my God, like, everyone's doing this. So we're
Paul Dawalibi:definitely in that second side there. Because ever since Apple started putting
Paul Dawalibi:lines out that side their stores for a new iPhone launch. Like I knew this was all very purposeful
Paul Dawalibi:this was this is marketing, right? You want to make it seem like something's in massive demand. I
Paul Dawalibi:don't think for a second this happened. Like, these companies are not stupid. They know that
Paul Dawalibi:they have the money to scale traffic. Yeah, right. Like, you plan for it. So your site doesn't go
Paul Dawalibi:down after your Superbowl ad. If the site went down, this was planned. The question I had for
Paul Dawalibi:you, Jeff is, and we're probably spending way more time on this than I think we originally thought
Paul Dawalibi:is, what is driving it? Is it a that the crypto companies believe that there is significance? I've
Paul Dawalibi:asked you this question in the gaming space. But do the crypto companies believe there's
Paul Dawalibi:significant overlap between crypto interest and sport? Sports fans or football fans specifically?
Paul Dawalibi:Or is it that they just see the Superbowl as like, here's how we reach the mainstream and just get in
Paul Dawalibi:front of like, what other way? Can you get into kind of 100 million eyeballs like this quickly?
Jeff Cohen:In this case? I think it's it's definitely both I mean, it's the most mainstream
Jeff Cohen:sort of best way to get your brand in front of 100 million plus people very easily. So I think number
Jeff Cohen:one, it's that just get it the best way to get in front of a ton of eyeballs. It also is a little
Jeff Cohen:bit of a signaling effect. It shows Hey, we're so real. We're so we have so much money that we're
Jeff Cohen:able to spend this seven, whatever million dollars it is to get that 32nd ad. Having said that, we
Jeff Cohen:have seen a lot of data. And we've talked about this in the past. There's a massive amount of
Jeff Cohen:overlap between crypto enthusiast, and sports fans, and actually also esports fans as well to
Jeff Cohen:kind of tie this to gaming. But you know, we've seen a ton of deals between athletes, crypto
Jeff Cohen:companies, crypto companies, naming arenas and sporting arenas. So there is definitely data to
Jeff Cohen:support that. And before we move on, I will say the number one ad that I liked was the Larry David
Jeff Cohen:FTX ad, because it was hilarious. So if you haven't, although I like Paul, you should check
Jeff Cohen:that one out because it was the funniest, funniest ad.
Paul Dawalibi:I do love Larry David. So I'm sure I'm sure it was I have no doubt. Let's move on.
Paul Dawalibi:Jeff, let's talk about two companies that have announced or at least made moves into the
Paul Dawalibi:metaverse space or stated that they want to make moves and these are to call it tech or media
Paul Dawalibi:companies. The first here huge announcement I think, is from Disney, Disney said the headline
Paul Dawalibi:here is Disney appoints executive to oversee Metaverse strategy. So this the sky Mike White has
Paul Dawalibi:been essentially tapped to lead the firm's Metaverse strategy. He's been with Disney for more
Paul Dawalibi:than 10 years. He's gonna oversee a team that includes senior leaders according to this article,
Paul Dawalibi:and the CEO of Disney has said that the metaverse is the next great storytelling frontier to be
Paul Dawalibi:explored. So they I'll just put one more quote from the CEO of Disney here. He says he described
Paul Dawalibi:the metaverse as a perfect place to pursue our strategic pillars of storytelling, excellence,
Paul Dawalibi:innovation, and audience focus. teams across the company are exploring this new canvas. And I've
Paul Dawalibi:been blown away by what I've seen. The one question I have for you here is, and maybe I'm
Paul Dawalibi:being too critical. And obviously we're bullish on this podcast about the metaverse no question. But
Paul Dawalibi:he could literally be talking about gaming, and all of these quotes would still be applicable,
Paul Dawalibi:right? Why aren't they doing more in gaming if they think like, gaming is a pillar of
Paul Dawalibi:storytelling, excellence, innovation and audience focus, right? It's a new canvas for them. Like,
Paul Dawalibi:why are they not doing more there, but yet seem to seem to be giving more lip service to the
Paul Dawalibi:metaverse give a phone that you're 100%
Jeff Cohen:Right. And this was literally the first thing I thought when I read this was why are
Jeff Cohen:they creating a metaphor strategy and not starting with a gaming strategy? And I've talked about this
Jeff Cohen:numerous times. I don't know about on this podcast, but definitely on our sister podcast
Jeff Cohen:business of esports. And the livestream we do Disney is the perfect gaming company that isn't a
Jeff Cohen:gaming company currently. Now I know the history there, they've gone through fits and starts were
Jeff Cohen:at times they did build games internally, then they outsource them. Bob Iger famously didn't want
Jeff Cohen:to be involved in gaming. And and I think it's been a just a massive miss. Now they're getting
Jeff Cohen:some revenue from the deals they've done with EA for their properties, like Star Wars. You know,
Jeff Cohen:they've done some some other licensing deals to a lot of mobile games, stuff like that. But the fact
Jeff Cohen:that they don't have a gaming strategy in house has been just a massive strategic wonder, when you
Jeff Cohen:look at what Disney is and the IP they have, and just the fact that they are a media company that
Jeff Cohen:really does storytelling, pretty much better than anyone else, I would argue with what they've done
Jeff Cohen:with Star Wars Marvel, you know, you could name 10, other franchises or IPS, it is almost
Jeff Cohen:inconceivable that they're not bigger and don't want to be more involved in the gaming space. So
Jeff Cohen:to me when I saw this, and it almost made me angry that they're sort of just paying lip service to
Jeff Cohen:the metaverse without making it more of a broader gaming conversation. Now, if this is the first
Jeff Cohen:step towards Bob, shaping the CEO of Disney having a different view on gaming to what his predecessor
Jeff Cohen:had, then I can understand that and maybe we're gonna see large acquisitions. You know, I've heard
Jeff Cohen:a lot of times Disney would make sense to buy EA, because they have they own ESPN. EA, obviously has
Jeff Cohen:the sports, the sports titles, plus Star Wars games are built by EA, boom, there's a lot of
Jeff Cohen:synergies there. So maybe that's the next move. And you and I will sit, sit back and kind of
Jeff Cohen:applaud and say that this was part of a bigger strategy. But right now to me, even though the
Jeff Cohen:metaverse is a massive opportunity, and maybe one day transcends gaming, and actually is the bigger
Jeff Cohen:opportunity, it seems to me like you need to crawl before you can walk before you can run. And this
Jeff Cohen:is Disney trying to run before they can walk and, you know, promoting a guy who, you know, seems to
Jeff Cohen:be a longtime Disney executive, I'm not sure if he even really has any experience in gaming to quote
Jeff Cohen:unquote, run their Metaverse strategy, to me is is just simply not enough. And I realize I'm going on
Jeff Cohen:a little bit of a rant here. I want to start with that. Get your opinion on that. And then I think
Jeff Cohen:we should talk about the broader, like, what should Disney's Metaverse strategy be? Because I
Jeff Cohen:do think there's a massive opportunity sort of in this digital theme park type space where, yeah, it
Jeff Cohen:gets me excited, but I'll stop there and let you kind of cover the first.
Paul Dawalibi:I agree with everything 100%. The question I had for you to sort of instead of a
Paul Dawalibi:question more than a comment really is the lack of a gaming strategy at Disney because they have they
Paul Dawalibi:have lacked one. Does that hurt them? When it comes to the metaverse right? Do you? Do you think
Paul Dawalibi:because they don't have gaming expertise in house like people with really deep experience and
Paul Dawalibi:knowledge that that trying to build out a Metaverse strategy. They're starting from a from a
Paul Dawalibi:disadvantage almost like or is it a clean slate?
Jeff Cohen:No doubt it has to hurt. I mean, they don't have the internal expertise in terms of just
Jeff Cohen:what you would need like developers and coders, a game engine. Like in order to be a serious player
Jeff Cohen:in this Metaverse conversation, Disney either needs to buy someone like an EA, or someone like a
Jeff Cohen:unity or epic. I mean, I just don't see any other way around it. They they don't currently have the
Jeff Cohen:developers internally to build it, because they're not going to build the pipes behind it like the
Jeff Cohen:like the actual infrastructure of the meta platform because they don't have game developers.
Jeff Cohen:And they're not going to build games because they're currently not in that world. So that while
Jeff Cohen:they do have the IP, and I fully believe that they could build they have the DNA to build great
Jeff Cohen:stories and great games. It's not currently something they're doing. So I don't see unless
Jeff Cohen:this is paired with a massive hiring, push what they can possibly do. And we know from past
Jeff Cohen:episodes in Metaverse, developers are incredibly expensive game developers are massively expensive
Jeff Cohen:and in demand currently, so I just don't see much coming at this. And I do disagree. No,
Paul Dawalibi:and I think your second question was a good one, which was, what do they need to do
Paul Dawalibi:to be successful in the metaverse Right? And, and you're buying a VA I think is an interesting
Paul Dawalibi:thought. You and I have you know, talked about this previously and I agree wholeheartedly that it
Paul Dawalibi:makes sense the sports games a whole bit, but I think you just mentioned another one, which I
Paul Dawalibi:think would be give them allow them to catch up at least in terms of being behind and allowing them
Paul Dawalibi:to make up time is is epic, right? Epic has family friendly games, they have the engine that feels
Paul Dawalibi:Disney ish. You know, Tim Sweeney for all of his genius And what he's created, I think needs kind
Paul Dawalibi:of the stability and good management of Disney to shepherd those properties, you know, to to long
Paul Dawalibi:term success. So I, you know, to me that makes a lot of sense if you're asking me what does Disney
Paul Dawalibi:need to do to be successful here, and they tip their hat a little bit. Let me just, I want to
Paul Dawalibi:read this one piece of the article here where it says, Disney says said it sees the metaverse as
Paul Dawalibi:the next evolution of its almost 100 year old storytelling tradition. And this is a quote from
Paul Dawalibi:Bob chapek. He says, Today we have an opportunity to connect those universes and create an entirely
Paul Dawalibi:new paradigm for how audiences experience and engage with our stories. And I'm, I think the
Paul Dawalibi:quotes interesting, and the conclusion I draw from it, even though it may seem far fetched is Disney
Paul Dawalibi:never understood gaming? But they understand the metaverse because, as you very insightfully
Paul Dawalibi:pointed out, it's like a virtual theme park right? We can create a stop for Toy Story a stop for, you
Paul Dawalibi:know, Marvel a stop for Disney read like it. Conceptually, the metaverse seems more familiar to
Paul Dawalibi:Disney than just gaming on its own does.
Jeff Cohen:That's actually a great point. I hadn't thought it yet where it's like you could
Jeff Cohen:have the Disney Metaverse basically be a Disney theme park. And each thing could be either a ride
Jeff Cohen:a gaming experience, you know, some different IP that you're interacting with. I mean, it makes all
Jeff Cohen:the sense in the world. Another point on the epic, maybe them acquiring epic, there is a track record
Jeff Cohen:of visionary sort of founders selling companies to Disney, right. You had Steve Jobs famously sold
Jeff Cohen:Pixar to Disney and became their largest shareholder. So you know, maybe Tim Sweeney sees
Jeff Cohen:that and says, Hey, maybe I follow and Steve Jobs for footsteps or no? Ego, so maybe he gets some
Jeff Cohen:enjoyment out of that.
Paul Dawalibi:And that's like about the same ballpark from evaluation like in terms of the size
Paul Dawalibi:of the buy, right? The EA or epic, probably about the same, right? You're talking 30 40 billion in
Paul Dawalibi:that range, something like that. I think that would be an it's an interesting one to watch what
Paul Dawalibi:Disney decides to do. I just want to put this next to another story though, which is, I think there's
Paul Dawalibi:a lot less here to dig into but but they go together in my opinion. And this is the headline
Paul Dawalibi:here. YouTube is embracing the metaverse starts with gaming. So slight difference here, right
Paul Dawalibi:where YouTube is looking at the metaverse from a gaming standpoint. And and they're quoted here as
Paul Dawalibi:saying this is the chief product officer. He says, we're thinking big about how to make viewing more
Paul Dawalibi:immersive. The first area in which you can expect to see an impact is gaming, where we'll work to
Paul Dawalibi:bring more interactions to games, and make them feel more alive. It's still early days, but we're
Paul Dawalibi:excited to see how we can turn these virtual worlds into a reality for viewers. The other part
Paul Dawalibi:of the article just says that they announced their commitment to the metaverse and they want to
Paul Dawalibi:inject a new level of immersion into YouTube entertainment. It says their exact plans are
Paul Dawalibi:unknown, but they're gonna start with video games. What do you make of that? Jeff, compared to sort
Paul Dawalibi:of the Disney announcement?
Jeff Cohen:I don't know about comparing it to the Disney announcement. But I this all kind of
Jeff Cohen:confused me it feels like they threw together like a big buzzword soup has interested a little bit in
Jeff Cohen:this concept of immersive viewing. Like, it got me thinking maybe there's a world where you're
Jeff Cohen:watching streamers, and then all of a sudden you can kind of enter their their game. And you can
Jeff Cohen:have your own control. So you can kind of be walking around their game and sort of interact
Jeff Cohen:with them maybe. And to be honest, that's a little bit I think that was what was pitched with stadia
Jeff Cohen:right there was the I think it was called streaming connect where like, basically that's
Jeff Cohen:what they were pitching. So maybe eventually we get to a world where that happens, because that's
Jeff Cohen:the only thing I can think of I think of immersive what what is immersive by watching a YouTube video
Jeff Cohen:currently, you know, nothing. So maybe there's some element to that, like you can jump into
Jeff Cohen:someone's someone's actual stream. Short of that I don't really understand what they're talking about
Jeff Cohen:when they're talking about a Metaverse with YouTube, right? It's just like the two things are
Jeff Cohen:not the same.
Paul Dawalibi:I mean, I really don't think YouTube understands. This is the problem when you
Paul Dawalibi:have a such a good business. It's like it's an $8.6 billion revenue business. That requires
Paul Dawalibi:almost no effort whatsoever, right? Like, people aren't gonna stop watching YouTube or posting on
Paul Dawalibi:YouTube. This felt like such lip service to the metaverse to me and just a fundamental
Paul Dawalibi:misunderstanding of what like it felt like the stadia announcement all over again. We're gonna
Paul Dawalibi:create the future of gaming we're gonna write like a lot of talk You will see probably no follow up.
Paul Dawalibi:I think it's much more interesting to see where Disney goes with this than YouTube, right? I think
Paul Dawalibi:YouTube and Google, likely not even part of the metaverse conversation at this point, I haven't
Paul Dawalibi:seen anything of any substance from them so far. And and, you know, Google just does isn't as
Paul Dawalibi:acquisitive as like, some of the other companies. I don't see them making an acquisition to get them
Paul Dawalibi:sort of jumpstarted in gaming or the metaverse in any way. Do you?
Jeff Cohen:Know, I don't think so. I think you're right. I think the more likely, you know, people
Jeff Cohen:would even even Apple, probably Amazon, Apple, Facebook. Clearly if they could get past
Jeff Cohen:antitrust, Microsoft's already done a big acquisition and then throw Disney I guess into
Jeff Cohen:that, that camp as well.
Paul Dawalibi:Let's talk let's switch gears Jeff to Wall Street because Wall Street also made
Paul Dawalibi:Metaverse news this week. And there's two articles, which I'll put them together. But the
Paul Dawalibi:first here is Wall Street's Metaverse, dreams take a hit. And this article is talking specifically
Paul Dawalibi:about Roblox, whose stock was down 16%. As of today,
Jeff Cohen:actually went down more than that. I think it was as much as 28%. Probably when this
Jeff Cohen:was written, it was 16. But yeah, it was a bloodbath.
Paul Dawalibi:Well, and that's in spite of daily active users hitting almost 50 million, which is
Paul Dawalibi:up 33% year over year. And I think their their bookings, like in terms of how much roebucks
Paul Dawalibi:they've they've sold like also hit an all time high. Like the fundamentals, the growth seems to
Paul Dawalibi:be there. They just missed analysts estimates in terms of earnings per share, right? I think that
Paul Dawalibi:was the big
Jeff Cohen:Yeah, there was a little bit of basically what's happening is they're they're
Jeff Cohen:lapping Tough comps, because last year was was, you know, p COVID. So if you look at them on kind
Jeff Cohen:of a two year stack, they're growing massively. But they especially in North America, I think
Jeff Cohen:there North America, daily active users declined. So people were concerned about that. And then
Jeff Cohen:their booking they so they actually give monthly numbers, which is very rare. But they said their
Jeff Cohen:numbers for January, North America, da us were down again. And then their bookings, which is
Jeff Cohen:revenue, so their revenue is only up to two to 4% in January, year over year. So I think that that
Jeff Cohen:deceleration kind of always scares Wall Street. But needless to say, the long term story is still
Jeff Cohen:very bullish. They're up over, I think they are over 50 million daily users, daily active users in
Jeff Cohen:January. So you know, we're talking about a business that's basically tripled in terms of its
Jeff Cohen:user base over the past two years. Obviously, you're gonna face tough comparisons when you're
Jeff Cohen:growing that fast, you know, laughing at the next year, but there's a massive runway here. And then
Jeff Cohen:they talked about kind of three big pillars in the earnings call that I thought were pretty
Jeff Cohen:interesting. First, it pillars in terms of growth pillars, first one being international, kind of
Jeff Cohen:getting getting bigger internationally, got to grow in the platform that way, second, aging up,
Jeff Cohen:which is something we've talked a lot about visa V Roblox meaning increasing the average age of
Jeff Cohen:players having either people stick around longer and not aging out of the platform, or attracting
Jeff Cohen:an older, an older crowd to the platform. And then the third being attracting different experiences.
Jeff Cohen:So more like immersive core games and other just types of experiences. So I thought that was that
Jeff Cohen:was all interesting. But yeah, it was a pretty bad day as a robot shareholder that to see that
Jeff Cohen:happen.
Paul Dawalibi:You know, we're still talking like a $31 billion market cap or something like that.
Paul Dawalibi:It meta also took a plunge this week, right? I think they're down. The article mentions 34% this
Paul Dawalibi:year. And you know that it seems like the pivot to the metaverse or to meta, I guess, where I'd love
Paul Dawalibi:to ask you is, is there? Is there some amount of fatigue around conversation around meta in the in
Paul Dawalibi:the public markets where they're, you know, the hype has subsided a little bit and prices are
Paul Dawalibi:coming down to normal? Or is it that fundamentally investors don't agree with the direction?
Jeff Cohen:I think it's, it's,
Paul Dawalibi:well, it's definitely about this. I
Jeff Cohen:don't think it's the second I don't think it's that hey, people just don't buy into
Jeff Cohen:this concept. Maybe people are I think the mainstream is probably still very skeptical of
Jeff Cohen:this sort of like capital T capital and metaverse. But I think the the concept of people spending
Jeff Cohen:more time in virtual worlds and these worlds having vibrant robust economies is you know,
Jeff Cohen:essentially just described multiplayer gaming that nobody nobody doubts that that It's certainly
Jeff Cohen:happening. I'm tempted to say that a lot of these are sort of like idiosyncratic events where
Jeff Cohen:Facebook got hit by sort of advertising issues with Apple. And Roblox is just lapping Tough comps
Jeff Cohen:and and sort of like that that's what's led to the decline. But that decline is definitely leading to
Jeff Cohen:a little bit of, I'll call it Metaverse malaise, maybe to create a term where you are seeing people
Jeff Cohen:start to like, roll their eyes a little bit or maybe like get fatigued a tiny bit with the
Jeff Cohen:buzzword of the metaverse just a little bit. I don't have you kind of come across that as well.
Paul Dawalibi:I mean, not really, like even in the echo chamber of call it Metaverse and gaming
Paul Dawalibi:and crypto kind of world that we live in breathe in every single day. I just don't think we more
Paul Dawalibi:we've hit peak yet whatsoever. Like I said, I my guess is we're still like a year or two away from
Paul Dawalibi:kind of peak hype cycle. I truly think a lot of it comes from the fact that it's still a big question
Paul Dawalibi:mark for a lot in the mainstream like the same in the early days of gaming and esports steam as the
Paul Dawalibi:in the early days of any other sort of technology lifecycle. There's, there's just question marks,
Paul Dawalibi:there's education that has to happen. People it needs to start to feel real to people, right,
Paul Dawalibi:like, and then we're just not there yet, right? Like the whole meta thing is the Facebook's
Paul Dawalibi:transition to meta really other than the name change hasn't happened yet, right? People still go
Paul Dawalibi:on Facebook and use Facebook in the same way they always have, for the most part. So I just think
Paul Dawalibi:it's not real for people yet. And and that may hurt these companies in the public markets for the
Paul Dawalibi:next year or two, right until a lot of this stuff's for your average Wall Street analyst is
Paul Dawalibi:like so much easier to feel in touch and see. But, you know, I track these things up to sort of short
Paul Dawalibi:term and probably other forces at work, not really, anything fundamentally has changed about
Paul Dawalibi:the the upside or the potential here. I will say Wall Street, though, sort of seems conflicted. If
Paul Dawalibi:I can say that, because the other story I wanted to put next to this one was was this one which is
Paul Dawalibi:JP Morgan, you know, it's called, you know, one of the foundational but one of the pillars of Wall
Paul Dawalibi:Street. JP Morgan, the first bank into the metaverse looks at business opportunities. The sub
Paul Dawalibi:headline here says the Wall Street bank has opened the lounge in blockchain based decentraland. They
Paul Dawalibi:unveiled it they called it the Onyx lounge. The name refers to the bank's suite of permissioned
Paul Dawalibi:Ethereum based services. They released a paper exploring how businesses can find opportunities in
Paul Dawalibi:the metaverse. They say they're getting a lot of client interest to learn about the metaverse,
Paul Dawalibi:which is sort of the point they made earlier. And they put together a white paper to help clients
Paul Dawalibi:cut through the noise and highlight what the current reality is, and what needs to be built
Paul Dawalibi:next in technology, commercial infrastructure, privacy, identity and workforce in order to
Paul Dawalibi:maximize the full potential of our lives in the metaverse. So you know, JP Morgan thinks that all
Paul Dawalibi:these values are going to go up right there. They're bullish on decentraland, sandbox, crypto
Paul Dawalibi:voxels, all these kinds of land platforms and bullish on the Dow's da O's. What do you make?
Paul Dawalibi:What do you make of JP Morgan sort of throwing their hat in the ring here, Jeff, and, you know,
Paul Dawalibi:almost putting a stake in the ground and saying they're bullish on the metaverse. They want to
Paul Dawalibi:educate their clients on the metaverse and they're sort of willing to put their I don't know if it's
Paul Dawalibi:their money where their mouth is, but you know, having a presence of their own in the metaverse
Paul Dawalibi:and maybe sort of my second minor question is, do we need banks in the metaverse like the central
Paul Dawalibi:aim needed? JP Morgan Brandon
Jeff Cohen:dancer the second way? I think the answer that is probably yes. Um, I made a joke. I
Jeff Cohen:think it was on Twitter on Discord when I saw this where you know, it was are these banks going to be
Jeff Cohen:giving Metaverse mortgages? I mean, we've we've covered land in the metaverse so much like and I
Jeff Cohen:say it jokingly but at the same time, it's sort of serious, like, am I gonna be able to take out a
Jeff Cohen:mortgage to buy land in the metaverse in theory, that will definitely be the case. But I don't know
Jeff Cohen:if we're there yet.
Paul Dawalibi:But we'll go to a branch in the metaverse to take
Jeff Cohen:good why not? And at this point, why not? But your first question. I sort of also laugh
Jeff Cohen:at that because I you know, having worked at an investment bank, my first couple years at a
Jeff Cohen:college I worked at at Barclays for those of you who don't know, I just thinking to myself, like
Jeff Cohen:who even at the bank, like who came up with this was it you know, decentraland approached JP
Jeff Cohen:Morgan, who did they go to? And who's actually built It's like this JP Morgan, have game
Jeff Cohen:developers on staff? Or presumably I'm sure they contracted with, you know, an outside or marketing
Jeff Cohen:that but yeah, it's fascinating kind of to see this and good on JP Morgan for sort of taking the
Jeff Cohen:initiative and having this thought leadership because you can bet that their high net worth
Jeff Cohen:clients are incredibly interested in the metaverse and crypto 100%.
Paul Dawalibi:Does it change the math you think for these banks? If because the all these banks,
Paul Dawalibi:whether it's JP Morgan, or otherwise, Bank of America, or chase or whatever, right, they've all
Paul Dawalibi:been built on, on real currency, fiat currency, right, like US dollars for the most part and
Paul Dawalibi:transacting in those currencies and, and lending in those currencies and right, like, do you think
Paul Dawalibi:if we believe crypto is the is the currency of the metaverse? Will there be regulatory issues with
Paul Dawalibi:these banks starting to operate there and providing services there? But in crypto, like, are
Paul Dawalibi:we going down a path where at some point, the you know, the really the long arm of the regulatory
Paul Dawalibi:law sort of starts to take notice? Right? Sure. and launch a service right in the metaverse. Yeah,
Paul Dawalibi:dealing in crypto, no one's gonna notice, right. Yeah. JP Morgan launches a bank in decentraland.
Paul Dawalibi:And if they're dealing in crypto in some way that someone noticed and go, Wait a second, maybe we
Paul Dawalibi:need to regulate this.
Jeff Cohen:I'm sure the answer is yes. I am definitely not the right person to be asking
Jeff Cohen:about, you know, banking regulations and the banking laws. But you can bet that, you know, when
Jeff Cohen:JP Morgan is doing something like this one, they pay compliance people a lot. So I'm sure they've
Jeff Cohen:thought about this, and to the regulators are going to notice and be knocking at their door
Jeff Cohen:pretty immediately. So you can bet both those things already happened. So yes,
Paul Dawalibi:Jeff, I want to get I want to make sure we have time to get to this last story,
Paul Dawalibi:because I think it's an interesting one. And the headline here is from games, beet salad ventures.
Paul Dawalibi:I mean, that's a horrible name, by the way, raises 13 and a half million to build guild O 's platform
Paul Dawalibi:for p2p that's played earn gaming. Let me try and explain this. So what what they're trying to do
Paul Dawalibi:here, it's an operating system for managing a play to earn guild. So the idea is that anyone will be
Paul Dawalibi:able to use the platform to start manage and scale a play to earn guild in any blockchain game. So
Paul Dawalibi:the idea is to simplify guild management, help make it be profitable, etc. I will also mention
Paul Dawalibi:investors included. Like some of the ones I recognize polygon studios, Winklevoss capital
Paul Dawalibi:Gemini frontier fund, like some really great, some great crypto investors, mostly, it seems. Curious
Paul Dawalibi:what you think of this, Jeff, what do you what do you make of you know, I was recently on a panel
Paul Dawalibi:about played around gaming, I'm sort of bearish on pure play to earn gaming because I think people
Paul Dawalibi:play for fun not to earn. That's a longer conversation, but like, what do you think of a
Paul Dawalibi:platform for guilds.
Jeff Cohen:So I can take this in two parts. First, I mean, my views on guilds I haven't fully
Jeff Cohen:formulated like a perfect investment thesis. But just in general, I'm somewhat bearish on any game
Jeff Cohen:that requires a mortgage effectively to start playing it, I just think it's a massive, like, if
Jeff Cohen:I have to take out a loan to start playing your game, I'm probably not going to do that. It's just
Jeff Cohen:a really bad process, that onboarding process, and it creates a massive barrier to entry to people
Jeff Cohen:who are trying to enter your game. And maybe guilds fix that, but I kind of feel like that's a
Jeff Cohen:little bit of a bug, not a feature of, of Pelita earned gaming, where it's like, it just creates a
Jeff Cohen:really bad onboarding, experience and user experience. Putting that all aside, if guilds are
Jeff Cohen:sort of here to stay, which again, I don't know if I necessarily believe that I think eventually
Jeff Cohen:games will probably INSOURCE their guild and maybe do some sort of lending to players when they first
Jeff Cohen:start, so they don't have to outlay the money. So sort of taking what a guild does currently, and
Jeff Cohen:just having it be part of the onboarding experience and be owned by the game and by the
Jeff Cohen:publisher. So that's my sort of view on that but taking that if that doesn't happen and guilds are
Jeff Cohen:here to stay, this is really smart because currently, I'm not entirely sure how guilds are
Jeff Cohen:managed, but I imagine it's a lot of discord. It's probably a lot of different systems Telegram, you
Jeff Cohen:know, just general like blocking and tackling. And something that that automates a lot of that is
Jeff Cohen:system management LMS management system for guilds. makes a ton of sense. So I like the
Jeff Cohen:investment. I'm just not sure if I love the ecos like I don't know if the ecosystem is super
Paul Dawalibi:sustainable. I agree. I mean, there's always this risk of disintermediation. And
Paul Dawalibi:this panel that I was on this past week, like someone made I thought was, which was a very smart
Paul Dawalibi:comment, which is like xe infinity, the biggest mistake they made was not just managing the guilds
Paul Dawalibi:themselves, like opening themselves up to external guilds. And not having that in house as a service
Paul Dawalibi:was like leaving money on the table, basically. And, and it seems like that's the, that's, that's
Paul Dawalibi:the likely path I would assume most take it. It's hard to say, because I started to see the benefit
Paul Dawalibi:of an external third party that does this, I see the benefit to the user and also potentially to
Paul Dawalibi:the games who don't have to worry about this, right. There's some there's a resource out there
Paul Dawalibi:for players who want to start guilds and manage guilds. And you don't need to worry about any of
Paul Dawalibi:that. But it does feel like if they are lucrative in any way, which they are clearly that, you know,
Paul Dawalibi:the games themselves would INSOURCE This would include it as part of the features that they
Paul Dawalibi:offer. And anything where you become like a middleman which this sort of is feels like it
Paul Dawalibi:could be disintermediated away. Where I'm, I think much more bullish is I love the idea of
Paul Dawalibi:capitalizing on the explosion in play to earn and providing services and infrastructure to that
Paul Dawalibi:space. Right? If you're, if you're bullish on that space, it seems one of the smartest ways to go
Paul Dawalibi:other than making a game is figuring out how to interface with all these games. And so yeah, I'm
Paul Dawalibi:I'm a big fan there.
Jeff Cohen:I guess the other bull case, I would mention, just to play devil's advocate on because
Jeff Cohen:I was a little bit bearish on guilds, I guess it's it's basically a community that that can go to
Jeff Cohen:different games and almost like become a kingmaker where it's like, the guild decides, hey, we're
Jeff Cohen:gonna go play this game. And this game's gonna become popular because we're bringing our 50,000
Jeff Cohen:Guild members and we get to buy the stuff first. And then it becomes popular because we started
Jeff Cohen:using it and then you know, you kind of like,
Paul Dawalibi:but you could see how the guilds, because if they become kingmakers could outgrow
Paul Dawalibi:the usefulness of a platform that may take a cut of their earnings, for example. Yeah, right. Like,
Paul Dawalibi:if you realize you're so influential, and every game is courting you, or you know, you can move
Paul Dawalibi:from game to game and make a ton of money. Why? Why give anything up to a platform, if you can
Paul Dawalibi:self organize in some way. I mean, I guess that's also a potential risk. And you may end up with
Paul Dawalibi:just more of the long tail like not the very biggest guilds are not the most powerful. But it
Paul Dawalibi:look given the set of investors clearly there's a lot of understanding of that crypto space. And I
Paul Dawalibi:think a big challenge is the interoperability right? If you truly can go make a guild in any in
Paul Dawalibi:any game, regardless of me of that game's own interests, right, whether they want you to or not,
Paul Dawalibi:there could be value there to the player. Yep. Guys on that note, that wraps up this week's
Paul Dawalibi:episode episode 13 in the bag, Lucky 13. If you love the podcast, make sure to go leave a five
Paul Dawalibi:star rating or review tell others about the podcast, share it with your friends, Jeff, thank
Paul Dawalibi:you as always, we have so much fun doing this. And we will see you guys next week.
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