Relying on the Metaverse and NFT, the world show crazy “cutting leeks”?

Those who wanted to “cut” the receiver were eventually “cut” by the world show.

In 2021, the Metaverse will explode, and many companies and capital institutions will enter this trillion-dollar market one after another, trying to get a piece of the pie. Tianxiaxiu is one of the most radical ones. 

Since July this year, the world show has made more frequent moves to deploy the Metaverse. 

On July 13, Li Meng, chairman of Tianxiaxiu, appeared on the scene and shot a video, showing the first digital collection display hardware jointly released by Tianxiaxiu and Skyworth – the new product of HASHII encrypted digital prints. For this product, Tianxia Show said it has opened up a new model of digital art products and digital asset display applications in the Metaverse era. 

Shortly after that, on July 18th, the world show announced its cooperation with the virtual fashion brand RPRSENTED. The 3D virtual life community “Honnverse” and RPRSENTED jointly created the “Super Cyber” series of wearable digital sneakers. , According to reports, the series was sold out only 24 hours after landing in Rainbow Universe. 

Relying on the Metaverse and NFT, the world show crazy "cutting leeks"?

The virtual sneakers released by the world show, photo / Honnverse official Weibo

Tianxiaxiu is rapidly deploying in the world of the Metaverse, but what is interesting is that Tianxiaxiu was originally a popular economic company. 

Tianxiaxiu was established in 2009. The core business model is based on the influencer marketing and trading platform WEIQ. It links influencers with one hand and merchants with the other, and completes matching transactions online. Under this cooperation model, merchants obtain commercial benefits, and the platform and influencers Earned a commission. 

However, ten years ago when the world show just started, the domestic e-commerce industry was not yet mature, and the infrastructure such as mobile mobile payment had not yet been built. The world show went through a long period of dormancy. It was not until the rapid popularization of the Internet in recent years that the celebrity economy began to usher in a blowout development. With this, Tianxiaxiu also successfully went public on the A-share market in August 2020, known as the “first share in the celebrity economy”. 

In 2021, the Metaverse exploded. In October of that year, Facebook officially announced that it had changed its name to Metaverse. Since then, the trend of the Metaverse has been instantly ignited again, and has spread rapidly around the world. No one wants to miss this opportunity. 

It was also at the beginning of the explosion of the concept of the Metaverse that Tianxia Show officially announced its entry into the Metaverse and launched the virtual social product “Rainbow Universe”, which is one of the first Metaverse products to be launched in China.

Judging from the actions of Tianxiaxiu, the intention to rub off on the popularity of the Metaverse is obvious. Why should a company specializing in the popular economy go to the Metaverse? Is this a forward-looking layout of the world show or a follow-up hype? Is it chasing the wind or cutting leeks? 

1. Entering the Metaverse and NFT, the world show follows the trend

Starting from 2021, the world show who is a celebrity economy especially likes the concept of “rubbing” the Metaverse. 

In October 2021, the virtual social product “Honnverse” of Tianxia Show was launched, and then the digital collectibles platform – TopHolder digital collectibles platform was launched.

Let’s look at the rainbow universe first. As a virtual life community, after downloading the app, users can create a 3D virtual image in the rainbow universe, have their own 3D virtual house, and carry out social interaction, games and life, etc., in which users can not only communicate with other users, but also can Go to a friend’s house to hang out with each other. 

Just like the virtual real estate or land on other Metaverse platforms being sold hot, the virtual real estate market has been booming since the launch of Rainbow Universe. In Rainbow Universe, there are 13 types of houses, with a total circulation of 350,000 units. According to the level, they can be divided into six levels: SSS, SS, S, A, B, and C. SSS-level properties have not yet been issued. The SS-level “island around the sea” is the highest-level housing type with the highest scarcity, and the planned circulation is only 420 units. The S-class includes two types of polar wooden houses and half-sea view villas, with a planned circulation of 2,450 and 4,550 units respectively. 

Relying on the Metaverse and NFT, the world show crazy "cutting leeks"?

Real estate released by Hong Universe, photo/Honnverse Hong Universe official Weibo 

According to the chart of housing issuance rules in the Hongyu universe landing stage, the price of A, B, and C grades ranges from 8.8 yuan to 88 yuan; the price of S grade and above houses is not marked with a clear figure, and the price is unknown. 

For users, after purchasing “virtual real estate” in Rainbow Universe, they can become virtual digital people and “party” with friends anytime, anywhere.

The world show has high hopes for the rainbow universe, and has publicly stated that the rainbow universe is the ticket for the world show to the next generation of the Internet. In the 2021 annual report of Tianxia Show, “Hong Universe” has also been mentioned many times, and it is said that it will continue to improve Hong Universe and other innovative technology products, and explore the economic business model and product application of entrepreneurs.

However, in the initial stage of the internal testing of the Honnverse, some users commented that they encountered problems such as freezes and serious power consumption. At present, a moment of commercial download of the Honnverse App has found that the software still has problems such as freezes and flashbacks.

At the same time, with the continuous influx of individual players and “real estate speculators”, the buying and selling price of virtual real estate has repeatedly broken new highs. The listing price of a Hong Universe house on a second-hand platform ranges from a few hundred yuan to several hundred thousand yuan. The most expensive set reached 999,900 yuan. 

Let’s look at another product of Tianxiaxiu, TopHolder, which is positioned as “a self-media digital collection toolset for social platform content creators”. Each digital collection has an exclusive digital certificate, which cannot be copied and arbitrarily tampered with, which can effectively solve the problem of infringement. 

At present, the product has not only been connected to the Rainbow Universe under Tianxiaxiu, but also reached a cooperation with Weibo. It is worth noting that Sina and Weibo participated in multiple rounds of financing of Tianxiaxiu respectively. 

After cooperating with Weibo, creators can publish their original works on Weibo, and then use TopHolder to generate corresponding digital collectibles on the Weibo, and sell them on the platform. 

Relying on the Metaverse and NFT, the world show crazy "cutting leeks"?

Digital collection released by TopHolder, photo/Official Weibo of TopHolder’s top collector 

According to the Science and Technology Innovation Board Daily, Internet celebrities can use the tools provided by Tianxiaxiu to produce related content, including but not limited to digital collections and other digital peripherals. Tianxiaxiu will also charge a certain fee for users who use the tools. One of the predictable profit models of Rainbow Universe. 

As soon as TopHolder was launched, it attracted some celebrities to settle in. In March of this year, Wang Zijian, a senior player in digital collections, spent 8888 yuan to buy the digital collection “Run” released by the big V@Genius Xiaopanda on Weibo. Two digital collections, priced at 30,000 yuan, on TopHolder by domestic animation IP @鱼太仙 are also shown to have been sold. 

After users purchase digital collections, they can show the collections to others as furniture or ornaments in virtual real estate in the Metaverse. 

As a result, after users consume on TopHolder, they will be displayed on Rainbow Universe, and Tianxiaxiu will form a certain business closed-loop, frantically harvesting users.

2. From the user to the capital market, how much money did Tianxiaxiu “cut”?

As soon as the news of Xiuyuan Universe came out, it caused widespread heated discussions, and the stock price continued to rise by the limit. 

On November 18 last year, on the 11th anniversary of Tianxia Show, founder Li Meng released an open letter titled “Towards the Next Decade to Make Connections More Valuable”. In the letter, Li Meng formally introduced the company’s 3D virtual social product, Hong Universe, based on blockchain technology, and said, “Hong Universe will enable us to continuously approach the ultimate dream of social technology, and build a brand-new connection between users, creators and A new ecology of content creation for brands.” 

After the release of the open letter, on November 18 and 19, the stock price of Tianxiaxiu rose by the limit for two consecutive trading days. As of the close of the 19th, the stock price of Tianxiaxiu was at 15.31 yuan. The company’s total market value was 27.68 billion yuan, and the market value soared by nearly 5 billion yuan.

Relying on the Metaverse and NFT, the world show crazy "cutting leeks"?

Changes in the stock price of Tianxiaxiu in November 2021, Figure / Futu Niuniu App 

An open letter, two daily limits, worth more than 5 billion yuan, maybe even Li Meng himself did not expect to receive so much attention. Li Meng said that Hongyu’s products are still in the state of grayscale testing, and there are more than 130,000 reservation users. 

But the good times didn’t last long. After the market value soared for two consecutive days, the Shanghai Stock Exchange’s regulatory prompt followed.

On the evening of November 19, the Shanghai Stock Exchange issued the “Decision on Giving a Supervisory Warning to Tianxiaxiu Digital Technology (Group) Co., Ltd. and relevant responsible persons”. 

According to the “Decision”, in the current hot market period of “Metaverse” and other related products and technologies, the company has not actually participated in the research and development of AR, VR, MR and related hardware technologies, nor has relevant hardware technology reserves or patents. The company’s main business has not undergone major changes. At the current stage of the company’s business and product technology development, Li Meng mentioned in the open letter that the joint promotion of materials science, distributed science, AI algorithms, quantum computing and related hardware science, with the help of MR and other content, may mislead investors. The company shall make the disclosure truthfully, accurately and objectively in the media that meets the statutory requirements of the CSRC. 

It is undeniable that Tianxiaxiu deploys the Metaverse, which can open up the market by attracting the celebrity network resources accumulated over the years, and provide a certain creative world for the original author, and endow the original work with digital art value. But what cannot be ignored is that if there is no solid foundation with solid hardware technology, the layout of the Metaverse will eventually be a dangerous building, and will eventually become extremely fragile and vulnerable. 

Going back to the app of Rainbow Universe, the product is currently on the shelves of some app stores. As of April 2022, the number of registered users of Rainbow Universe for half a year has been 400,000.

A big V who has experienced it said that the essence of Rainbow Universe is a game that spends unlimited money to decorate a house. But in the eyes of many people, speculation in virtual real estate is far greater than the fun brought by the game itself. For example, some netizens said after grabbing an A-level glass flower house worth 88 yuan, they don’t know if this virtual house can increase ten times or eight times like the housing prices in various places, or even like digital currency and virtual collections. A hundred times, a thousand times? 

As early as mid-December last year, Sino-Singapore Jingwei reported that there were sellers on the Xianyu platform who sold SS-class islands around the sea at a price of 150,000 yuan, claiming that they were “numbered as the top 5”, and there were also 100,000, 12,000 yuan. The sellers who sold the islands around the sea for 10,000 yuan all claimed that the house number was first. What is even more exaggerated is that some netizens have posted that the price of a set of islands around the sea on Xianyu is as high as 500,000 yuan.

Is this a new blue ocean or a new bubble? 

Time quickly gave the answer. After a period of crazy hype, at the end of December last year, Xianyu blocked keywords such as “Metaverse” and “Hong Universe” to limit the transaction of virtual real estate; Hong Universe’s official Weibo also The document stated that it will focus on monitoring all violations involving private transactions, induced transactions, speculation, fraud and other illegal activities. Once discovered, relevant accounts will be restricted from logging in or prohibited from logging in. Measures. 

Although there are still users who resell Hong Universe properties in the QQ group, the price has shrunk significantly compared to before. According to Blue Whale Finance, in the Hong Universe Exchange QQ group, the price of real estate transactions ranges from 500 yuan to 2,800 yuan.

Soon after the explosion, the shareholders of Tianxiaxiu embarked on the road of reducing their holdings and cashing out. In the first week of 2022, Tianxiaxiu disclosed the reduction plan twice, and many shareholders of the company planned to reduce their holdings of no more than 4.5% of the company’s shares. , cashed out nearly 1 billion yuan. 

Recently, the shareholding reduction of Tianxiaxiu shareholders has continued. Since July, Tianxiaxiu shareholders and persons acting in concert have reduced their holdings by a total of 36.137 million shares and cashed out 316 million.

Relying on the Metaverse and NFT, the world show crazy "cutting leeks"?

Tianxiaxiu Announces Shareholder Reduction Announcement, Photo / Futu Niuniu App 

The share price of Tianxiaxiu has long since been restored to its original shape. Today, the share price of Tianxiaxiu is lower than before the launch of the Metaverse product. As of July 25, the closing price of Tianxia Show was 7.64 yuan per share, and before the release of Hong Universe, its share price could remain above 8 yuan, which was nearly half of the peak price of 15.31 yuan per share. 

It can be seen that the success of Rainbow Universe is weak, and as the enthusiasm for virtual asset trading becomes more rational, Rainbow Universe has only gained 400,000 users in the 6-month internal testing period. Such a user volume is completely unable to support a social platform, let alone a large number of users. Users are still non-target users who want to cut leeks from each other. 

At present, the trading of virtual products in Rainbow Universe is also gradually cooling down, and most of the virtual real estate has returned to the transaction price of several hundred yuan and one thousand yuan.

The Metaverse social track is still in its infancy, and the industry is still facing a lot of problems. If it is just a hot topic without any real skills, the final result is often that crazy kryptonite users and retail investors in the stock market become cut leeks. . 

3. Why does the world show want to smash the popularity of the Metaverse?

The world show that is crazy about the concept of the Metaverse, in fact, its own celebrity brokerage business has already been in crisis. 

According to the 2021 financial report previously disclosed by Tianxia Show, the revenue was 4.51 billion yuan, a year-on-year increase of 47.4%; the non-net profit deducted was 420 million yuan, a year-on-year increase of 12.7%. During the reporting period, Tianxia Show had nearly 180,000 merchant customers and more than 1.92 million celebrities.

The revenue of Tianxiaxiu mainly includes two major sectors: the influencer marketing platform business and the influencer economic ecological chain innovation business. Among them, the influencer marketing platform business occupies the main force, recording an operating income of 4.29 billion yuan, accounting for about 95% of the overall revenue, an increase of 45% year-on-year; while the influencer economic ecological chain business recorded a revenue of 222 million yuan, accounting for only the overall revenue. 5%, but a year-on-year increase of 123%. 

Although Tianxiaxiu’s realized revenue and net profit show a positive growth trend, the company’s operating cash flow is a continuous net outflow. 

The financial report shows that the net operating cash flow of Tianxiaxiu has been in a state of outflow in the past five years. The net cash flow in 2021 is -438 million yuan, compared with -316 million yuan in 2020, the outflow scale has further expanded.

In response to the issue of net cash flow, Li Meng responded at the performance communication meeting that on the one hand, it was the upgrading and transformation of big data products in the main business of new media business, and on the other hand, it was the innovative business around the industrial chain of the celebrity economy. The layout was effective at the beginning, and investment was increased during the reporting period. 

For any company, operating cash flow is the key to survival and development. With the continuous net outflow of operating cash flow from Tianxiaxiu, the capital chain will only be under more pressure. If things go on like this, it will be difficult to maintain the healthy operation of the company. 

What’s more, the world show is also facing a very fierce competition environment. 

Several platforms offer similar services to Tianxiaxiu. For example , Xinbang relies on the content data of the whole platform to provide services such as content marketing, e-commerce shopping guide, user operation, copyright distribution, etc.; Dianyi has realized the ecological closed loop ofthe whole advertising industry chain integrating media entry, advertising trading, and public opinion monitoring; Provide one-stop KOL resource procurement services, social big data services, social media communication strategy services, etc. 

According to city reports, the staff of Tianxiaxiu also said that before the listing of Tianxiaxiu, in order to increase revenue, the profit margin of the entire industry was depressed. Later, Tianxiaxiu wanted to increase profit margins, but encountered trouble.Because the entire industry is highly competitive and prices are transparent.

Under such circumstances, Tianxiaxiu had to find a new business growth curve. 

As early as in the 2019 annual report, Tianxia Show stated that it would continue to expand innovative businesses and new growth points, namely the innovative business sector of the red-person economic ecological chain. 

However, for the specific content of this section, Tianxiaxiu itself seems to have failed to make a clear division. In the 2020 annual report, the innovation business of the celebrity economic ecological chain includes the IMSOCIAL celebrity accelerator and TOPKLOUT

However, in the 2021 annual report, the celebrity accelerator and Craw Rui are classified into the new media business, while the innovation business of the celebrity economic ecological chain mainly refers to the construction of a “popular economic ecosystem” based on the Web2.0 era, including Innovative businesses such as new consumption production channels, celebrity vocational education, and trendy content block West Fifth Street. 

Such rapid changes may indicate that Tianxiaxiu failed to clarify the specific direction of the innovative business of the celebrity economic ecological chain, let alone rely on this business to achieve large-scale revenue.

Today, the main business of Tianxiaxiu is difficult to achieve high growth, and the innovative business has no substantial output, so the revenue and business difficulties are really in front of us. The Metaverse that suddenly appeared at this time has become the “life-saving straw” for Tianxiaxiu, but relying on cutting leeks to expand revenue, Tianxiaxiu is destined to not go far.

Posted by:CoinYuppie,Reprinted with attribution to:
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