The 100-billion-billion-dollar Metaverse market, the new driving force for Soul and Inke

The enthusiasm of capital to go to the Metaverse social market remains undiminished.

The 100-billion-billion-dollar Metaverse market, the new driving force for Soul and Inke

The picture comes from Canva can draw 

In the second half of 2022, the enthusiasm of capital to go to the Metaverse social market remains undiminished. 

Before, a foreign company Facebook changed its name to Meta, and said that it will focus on building a virtual reality sharing environment in the future. Later, a domestic company ” Yingke ” changed its name to “Yingyu”, which means “ALL IN” Metaverse, and the two changed their names. It shows the user’s determination to socialize in the code element universe. 

Coincidentally, Soul App , a social Metaverse platform focusing on building young people, officially submitted a prospectus to the Hong Kong Stock Exchange and is preparing to list in Hong Kong.Soul said in the prospectus that the net proceeds from the IPO will be mainly used to improve and upgrade proprietary technologies, improve data analysis capabilities, and develop a social Metaverse. 

Internet companies, technology companies, and social platforms have successively changed their names, went public, and raised funds, opening the door to social interaction in the Metaverse, and more novel and interesting virtual social gameplays have entered the stage of history. 

Metaverse social is booming

There is a famous saying in the Internet industry, “When you stand on the wind, pigs will fly.” The Metaverse social network has arrived. All social networking, virtual technology companies, and many serial entrepreneurs have set up “Metaverse Social”. Banner, the Metaverse social market is booming. 

As a result, the number of Metaverse social products has grown dramatically. Beginning in 2021, Internet companies have successively launched Metaverse social products, such as: Baidu’s Metaverse Social App Xiyang, Byte’s Metaverse Social App Party Island, as well as flagship Yuan such as Jelly, ZEPETO, Slow Planet, and Rainbow Universe. Social App for Cosmos Concept. 

According to online data, from November 2021 to January 2022, about 552 apps added the word “Metaverse” to their descriptions, and 70 of them claimed to be social apps in the Metaverse. 

Second, the financing of the domestic Metaverse track has accelerated. In April, Cocos , a provider of game development engines and tools, completed a $50 million Series B financing; in May, the Metaverse UGC platform BUD , founded by former Snapchat team members, completed a $36.8 million Series B financing; in June, Metaverse company Suiguang Technology Completed 125 million yuan financing… 

According to data released by Zhiyan Consulting, from January to April 2022, the investment and financing amount of China’s Metaverse market has completed 8.12 billion yuan, which has exceeded the level of the whole year of 2021. Investors in the Metaverse social market include Hillhouse Capital, Sequoia Capital, ZhenFund, Wuyuan Capital, Xianfeng Evergreen, Morningside Capital, Xinghan Capital and other first-tier investment institutions. 

Thirdly, the development of underlying technologies such as artificial intelligence, cloud computing, and 5G is gradually complete, and the Metaverse has broad prospects in the fields of games, social networking, and virtual shopping. According to the latest report released by Valuates Reports, the global Metaverse market size will increase from $28 million in 2022 to $510 billion by 2028, with a compound annual growth rate of 95% from 2022 to 2028. 

Going back to the source, the popularity of Metaverse Social is related to the development of technology, changes in users’ social needs and changes in the market environment. 

On the one hand, with the peak of mobile social traffic dividends, the stagnation of user growth, and the slowdown in revenue growth of social platforms, major companies are looking for new economic growth points. On the other hand, the combination of virtual and real, innovative and creative personalized gameplay of Metaverse Social is particularly favored by Generation Z, which meets the current social needs of users. 

There are various signs that the social transformation of the Metaverse is getting closer, and in this transformation, who can win the final victory? Is it WeChat and QQ, which have dominated the social market for many years, or platforms under technology giants such as Byte and Baidu, or a new social platform that young people love, or are it a cross-border chaser from the live broadcast market? 

Soul: The second impact on the IPO, creating the social dream of the Metaverse

As we all know, Soul has attracted many Generation Z with its novel social gameplay, and has become the most active social platform of Generation Z in recent years, just like a dark horse on the stranger track. 

According to the prospectus data, from 2019 to 2021, the number of monthly active users of Soul was 11.5 million, 20.8 million and 31.6 million respectively, and the year-on-year increases in 2020 and 2021 were 80.7% and 51.6% respectively; during the same period, the average number of daily active users 3.3 million, 5.9 million and 9.3 million, respectively, with year-on-year increases of 81.0% and 55.8% in 2020 and 2021, respectively. 

With the support of Generation Z, Soul quickly gained a foothold in the social market, and the listing was also on the agenda. 

In May last year, the social platform Soul applied for listing on Nasdaq with SSR as the trading symbol. Morgan Stanley, Jefferies, Bank of America Securities and CICC jointly served as underwriters, and set the issue price range at each American depositary share. Between $13-15.The reversal came quickly. On June 23, Soul issued an announcement saying: “After careful consideration, the management first suspended the IPO pricing process, and the major shareholder Tencent also supports this decision.” 

After Soul’s first listing was suspended midway, it turned to the Hong Kong Stock Exchange to submit a prospectus and initiated a listing application again. It is worth noting that Soul’s prospectus for US stocks and Hong Kong stocks focuses on keywords such as social Metaverse and virtual social networking. Obviously, the social Metaverse is a new map that Soul has described for capital. 

It is understandable why Soul takes Metaverse socialization as its current layout and future development direction. 

On the one hand, young people in Generation Z are very concerned about new technologies and new social interactions such as Metaverse and virtual humans. Metaverse social networking is very suitable for Soul’s mainstream user groups. On the other hand, Soul mainly monetizes through value-added services such as virtual props and membership subscriptions. Improving the virtual social ecology is beneficial to develop diversified revenue channels and enhance the platform’s monetization ability. 

It is understood that on the Soul platform, users can use Soul coins to purchase virtual props and rights, including special avatar props, virtual gifts, and permissions to increase referral opportunities.From 2019 to 2021, Soul’s average monthly paying users will be 269,000, 929,000, and about 1.7 million, respectively, and the average monthly income of each paying user will be 21.9 yuan, 43.5 yuan, and 60.5 yuan, respectively. 

For the latecomers in the industry, it is not easy to challenge the social market dominated by Weibo and QQ. There are many sorrows and sorrows on both sides of the social track for strangers. Soul needs to make differentiated gameplay and enhance commercialization capabilities. Strengthening the virtual economy is indeed is a good choice. 

It’s just that it’s not easy for Soul to realize his dream of socializing in the Metaverse. 

In general cognition, the “social Metaverse” is a virtual social space that is close to the real social environment and has social gameplay that is the same as or even more than the real social environment. However, on the Soul platform, users can only post, “pink faces”, chat with multiple people, or pay to customize avatars, which is far from the social space of the Metaverse that people recognize. 

It is undeniable that social interaction in the Metaverse is the future trend. As long as Soul makes some achievements, its status in the social market will naturally rise to a higher level. However, Soul currently has Metaverse social gameplay and a virtual platform that cannot meet the expectations of users. If you want to realize the dream of Metaverse Socialization is a long way to go. 

Inke: Renamed and changed face, betting on social media in the Metaverse

Unlike Soul, who took the initiative to attack after clarifying its development strategy, Yingke’s layout of social media in the Metaverse is more like a helpless choice after many unsuccessful transformations. 

At that time, Inke, which started from the show, became a household-known live broadcast platform with the help of the live broadcast bonus. The good times did not last long. Short videos suddenly seized the time of entertainment live broadcast users. Inke’s live broadcast business was unsustainable and forced to transform. In the past few years, the live broadcast business has been under pressure. Inke has transformed into a social network to establish a product matrix of pairing, super-like, and product , and has also obtained corresponding returns. 

The financial report data shows that Inke social business contributed 14% of the group’s total revenue in 2019, and 41.8% of the group’s total revenue in 2020; in the first half of 2021, Inke’s social business revenue accounted for 2.69 billion yuan, which is in the group’s total revenue contribution. The total revenue contribution accounted for 66.7%, and the social business has become the revenue pillar of Inke. 

However, compared with other well-known social platforms, Inke does not have an advantage in terms of user scale, popularity and product reputation. If it hadn’t been renamed Ying Universe, people would probably have forgotten it. Therefore, Inke entered the Metaverse in the form of a name change this time, which can be said to be a “chasing the wind” in order to “restart”. 

As Feng Yousheng, chairman of Yingke, explained: “The group needs to have a more suitable brand name to represent the group’s external image, instead of replacing the group name with a specific product name, so the brand upgrade was changed from Yingke to Ying Universe.” 

At the product level, Inke has successively launched the Metaverse K song gameplay “Panorama K Song” and the Metaverse love APP “Lovers Planet”, and plans to develop and build an overseas 3D avatar social product The Place , aiming to continuously improve Metaverse social products Competitiveness. On “Panorama K-song”, Inke used 3D technology to restore the private room of K-song, and users can experience K-song immersively. On “Couple Planet”, couple users can create a private couple space for two people. 

At the technical level, the construction of the Metaverse social scene needs to meet the requirements of virtual space, virtual image, interactive experience, etc., which requires relevant enterprises to have technical capabilities such as AI recognition, dynamic beauty, VR, AR, MR, XR, etc. Inke As an “old player” in the Internet industry, he has product experience in the Internet, artificial intelligence, virtual technology and other technical aspects, but there are still many problems in front of Inke. 

The good news is that Inke has experience in developing social products such as Duyuan and Jimu, and has accumulated the habits and needs of mainstream social users, which is conducive to the layout of Metaverse social networking. In addition, users who have accumulated live broadcasts and social interactions at Inke can divert traffic to new Metaverse social products. At the same time, Inke continues to specialize in new technologies and innovative Metaverse social gameplay, so they have the opportunity to return to the peak moment. 

Accompanying runner OR big winner?

Since the concept of Metaverse was put forward, social, gaming, office and other fields have been successively tied to the prefix of “Metaverse”, and the concept of “Metaverse+” has emerged in the market. Just like the “Internet+” of the year, it has unlimited potential for mining. Some securities companies predict that by 2025, the total domestic market space of Metaverse in the fields of social networking, games, short videos, and mobile office will reach 340 billion to 640 billion yuan. 

The 100-billion-level market has attracted many players to compete. The participants must not only make up for their own weakness in technical strength, but also deal with the pursuit of foreign competitors. Who will be the runner or the big winner? become suspense. Judging from the current market, Jelly and Soul have popularity and users, while Super QQ Show, Xiyang, and Party Island are blessed with resources such as capital, technology, and capital. Each has its own advantages and disadvantages. 

Take the Metaverse social software Jelly as an example. On February 11, 2022, less than a month after the official launch of Jelly, the ranking surpassed WeChat and QQ, and reached the top of the AppStore free list, becoming the first ranking in the past three years to surpass Tencent. App is a social application. 

It is a pity that after the explosion of the gel, it was revealed that it was suspected of leaking user privacy, plagiarism of virtual outfits, etc., and many users said that the gel had many problems such as delays, flashbacks, and inability to enter, and then took the initiative to suspend the entry of new users. In fact, there are still many Metaverse social products that have been complained about as bad as Jelly. The main reason is that the technical strength cannot keep up with the ever-changing virtual social needs of users. 

That is to say, although the Metaverse social track is thriving, the virtual gameplay such as face-pinching, dress-up, games, and K-songs is seriously homogenized, and no software can fully satisfy people’s imagination of virtual social space. The social outlet of the Metaverse may be as fleeting as the previous “MT toilet”, ” chat treasure ” and “multi-flash”, or it may give birth to phenomenal products like Weibo, WeChat and QQ. 

What is certain is that the social track under the Metaverse outlet will usher in new changes. While the social platform uses virtual technology to improve service efficiency and user experience, it will also create new social methods and social spaces, enabling the social market to gain new opportunities. The growth of “social fanatics” also provides new momentum for development. 

Posted by:CoinYuppie,Reprinted with attribution to:
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