Bankrupt In The Metaverse

Restructuring and bankruptcy happen in the metaverse, too — and the uncertain and evolving rules of digital ownership could have surprising effects on who gets paid.

Companies are pouring capital into the metaverse, often on expectations of outsized future returns. Investment in the metaverse more than doubled in 2022, and industry experts have projected that the metaverse could generate as much as $5 billion in value by 2030.¹

But innovation involves risk, and not every innovator makes it to the promised land of reward. Just as in real life, it is inevitable that some of the players that are building and operating in the metaverse will face challenges that will force them into restructuring or bankruptcy. In fact, what was just recently a booming metaverse real estate market has shown significant signs of softening, with investors wondering if the metaverse housing bubble is about to burst.