Web3 prodigy Felix Hartmann on the future of crypto, metaverse, and why you should strap on a pair of VR goggles

Hartmann, who leads both a crypto fund and a metaverse fund, gives us a front view of what we can expect from web3 in 2024

By Riley Kaminer

Few Miami web3 investors have the diamond-handed crypto creds that Felix Hartmann has. In 2018, he launched Hartmann Capital, a crypto-asset hedge fund. In 2021, Hartmann and team launched a $15 million meta-focused venture fund — with plans to launch a second one this summer.

More broadly, the market seems to be heating up for the opportunities in the metaverse. Latest case in point: Disney invested $1.5 billion in Epic Games. So what does all this mean for the web3 arena, and what role does Miami play in it all? To find out, we interviewed Hartmann.

This interview has been condensed and edited for clarity.

Refresh Miami: What are your thoughts on the recently released Apple Vision Pro? What does this mean for the VR landscape?

Felix Hartmann: The Apple Vision Pro highlighted VR’s recent progress, which had previously been overshadowed by poor marketing and accessibility. Mark Zuckerberg’s recognition of the Quest 3’s value, despite its capabilities, highlights the challenge of recognition – something Apple is addressing with its global distribution and in-store demonstrations. This strategy not only makes VR accessible, but also shows practical applications beyond gaming, such as spatial video and enhanced movie viewing, making the technology more relatable to the general public.

Once we acknowledge that the Apple Vision Pro is an overpriced first iteration that isn’t intended to be a mass market product, it’s clear that its value lies in demonstrating VR’s potential. The Apple Vision Pro, while just a starting point, is an important step in bringing VR closer to mainstream acceptance.

What role does gaming play in spatial computing?

Games, in my opinion, play a transformative role in spatial computing, acting as a bridge to the next major medium of interaction after the smartphone. Our fund operates under two core theses: first, the emergence of spatial computing as a crucial platform, similar to the leap seen with smartphones; and second, the evolution of games into a new form of social media. This perspective challenges the conventional view that gaming is merely a niche activity for younger demographics. The reality is much wider, with an estimated three to 3.5 billion gamers worldwide, which includes nearly half of the world’s population across mobile, desktop and console platforms. This demographic shift isn’t just about playing games; it’s about integrating games into the daily social fabric, especially among younger generations like Gen Z, who prefer virtual spaces in Roblox, Fortnite and Minecraft to traditional social media platforms.

The confluence of the Internet and social media in spatial domains is best exemplified by virtual reality, where early successes such as VR game Gorilla Tag illustrate the potential for social interaction within gaming environments. Here, gaming serves as both the activity around which people come together and the ecosystem that supports a range of related interactions, from professional gaming and streaming to spectatorship. This evolving landscape highlights games’ integral role in shaping the future of spatial computing and social interaction.

How do you view centralized versus decentralized approaches to the metaverse?

In the metaverse landscape, we see a continuum from closed systems, such as Apple’s, which prioritize security but limit interoperability, to open ecosystems championed by companies such as Meta, which promote developer freedom and cross-platform compatibility. This openness not only encourages innovation, but also empowers developers and users, creating a competitive environment that benefits the wider community.

On the subject of decentralization, the key is firstly to build engaging worlds that attract users. The real value of blockchain and decentralization becomes apparent when there is genuine interest. For example, our approach allows for traditional gaming experiences with the option for players to use blockchain features, such as trading in-game items as NFTs. This balanced approach aims to serve a wide audience while leveraging the unique advantages of Web3 technology, ensuring both accessibility and the forward-looking potential of decentralized systems.

What do you think the crypto market will look like this year?

I have sat on panels and talked about the potential of a Bitcoin ETF since as far back as 2017. So I would definitely say that the recent approval of the Bitcoin ETF is a big milestone for the crypto market. In just over a month, Bitcoin ETFs have accumulated $10 billion in assets, marking a significant shift in how traditional finance views and engages with crypto-assets. The expansion into Ethereum and possibly a Solana ETF by the end of the year further illustrates the diversification and aging of the market.

The SEC’s approval of the Bitcoin ETF reflects a notable shift in regulatory attitude toward cryptocurrencies, moving away from the strict oversight seen in the wake of the FTX collapse. This changing regulatory landscape, evidenced by internal challenges and legislative criticism of the SEC, is likely to spur a new wave of innovation within the crypto space. The more neutral stance of regulators is expected to encourage the launch of numerous tokens, fostering a vibrant ecosystem of new projects and investment opportunities. This shift paves the way for a promising bull market in the crypto sector over the next 18 to 24 months, underscoring a period of significant growth and development.

How can Miami take advantage of this growth?

Miami’s rise as a tech ecosystem is on a long-term growth curve, but we’ve seen some ups and downs since 2021 when it seemed like everyone was moving here. Despite a period of adjustment where some newcomers left, the city’s core has grown, signaled by significant investment and high-profile moves, including Citadel and Jeff Bezos. This resilience underscores Miami’s potential to thrive in emerging bull markets, attracting a new influx of talent and investment due to its favorable tax environment and growing ecosystem.

But Miami faces a challenge attracting startup talent to match its capital influx. Despite a concentration of venture capital firms and hedge funds, there is a noticeable scarcity of local startups in our sector. This gap highlights the need for Miami to improve its tech talent pool, perhaps through better educational programs and opportunities in STEM fields. Strengthening this aspect is crucial for Miami to maintain its momentum and appeal as a hub for innovation and investment in the crypto and broader tech landscape.

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I’m a Miami-based tech researcher and writer with a passion for sharing stories about the South Florida tech ecosystem. I especially enjoy learning about GovTech startups, cutting-edge applications of artificial intelligence, and innovators using technology to transform society for the better. Always open for pitches via Twitter @rileywk or www.RileyKaminer.com.

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