This Data is Why Monaco’s Web3 Dream is a Bubble

Monaco. This name alone evokes a fantasy about wealth, Formula 1 and all that… little-Saudi-Arabia-shady-business-background-vibes. Now, they’re doubling down on Web3 with the WAIB Summit 2025. But is this really a bold step into the future? Or is it a deeply deliberate multi year plan to bring in more of those high-net-worth-individuals by making grand promises of decentralized wealth. My point is that there are some really hard questions we need to be asking.

Web3's Reality Check Needed Now

Let’s not kid ourselves, the Web3 narrative has been all sunshine and rainbows. We dream of a decentralized blockchain utopia. In this utopia, artists are fairly compensated thanks to NFTs, finance is available to all thanks to DeFi, and corporations are humbled a bit. Where's the proof?

I've dug into the data. Adoption rates for blockchain technology beyond crypto speculation just won’t budge. Success stories of truly decentralized applications are hard to come by. And NFTs? The market has cooled significantly. The buzz just hasn’t materialized into widespread, real-world usefulness.

A recent study showed that over 80% of NFT projects have little to no trading volume after the initial hype dies down. That’s hundreds of billions of dollars worth of digital dust, and a ton of lost investment. And are we certain that the Monaco elite are even enlightened as to the danger?

Is Monaco Truly Ready for Web3?

They have a pretty limited sandbox and a definitely… solutionary status quo. Today, they’re flinging wide the doors to Web3, AI and all the transformational chaos that entails. Can this highly centralized, traditional federal structure really embrace and fully adapt to the ethos of decentralization? Or will it just try to shape Web3 into the same old thing that mostly serves those on the current side of the power divide.

These are not hypothetical concerns. These are real risks that should be addressed, not whitewashed over in order to lure investment.

  • Increased Financial Risk: Unregulated Web3 projects can be breeding grounds for scams and fraud. Are Monaco's regulators prepared to protect investors, or will they be left holding the bag?
  • Environmental Impact: Proof-of-work blockchains, like Bitcoin, consume massive amounts of energy. Is Monaco prepared to grapple with the environmental consequences of becoming a Web3 hub? (Remember, they're surrounded by the beautiful Mediterranean!)
  • Job Displacement: AI, a key focus of the summit, has the potential to automate many jobs. How will Monaco address the potential impact on its workforce? Will the benefits of Web3 and AI be shared broadly, or concentrated among the few?

The WAIB Summit features heavy hitters such as Microsoft, AWS, and Animoca Brands. That lends credibility, no doubt. Let’s not be duped by the powerful logos. The key question is: What are these companies really doing in Monaco? Are they really trying to enable innovation, or are they just trying to find new markets and places to invest their money?

A PR Stunt or Real Innovation?

Monaco is a tiny country with a unique set of circumstances. It’s a tax haven, a playground for the elite, and a place where secrecy reigns supreme. These factors would undoubtedly draw innovation, but they would foster an environment where speculative investment would outweigh true technological progress.

My hunch is that the truth is in-between. If the WAIB Summit meets its goals as listed on their website, we may see some increased market space, more attracted investment, perhaps even real and impactful innovation. Let's not mistake hype for progress. As they move ahead, let’s continue to call for transparency, accountability, and a clear plan for dealing with the potential risks. Only then can we find out if Monaco’s gamble on Web3 will pay off. Mirage or Marvel—are they making a winning move, or just creating another bubble that will someday burst?

Perhaps, only perhaps, is it possible that Monaco can make good on its promise to be a true Web3 haven. That’s going to take a lot more than a glitzy summit and bouquets of easy money. It will require a commitment to responsible innovation, a willingness to address the potential downsides, and a genuine desire to create a Web3 ecosystem that benefits everyone, not just the wealthy elite. So no, I’m not going to hold my breath — but I will be watching very closely. And so should you.

Maybe, just maybe, Monaco can become a true Web3 hub. But it will require more than just a glitzy summit and promises of easy money. It will require a commitment to responsible innovation, a willingness to address the potential downsides, and a genuine desire to create a Web3 ecosystem that benefits everyone, not just the wealthy elite. I'm not holding my breath, but I'll be watching closely. And so should you.