Here is a guide that will tell you how to invest in metaverse.
In 1992 writer Neil Stevenson published his third novel The Snow Crash. In it, Stevenson's character interacts in a completely digital environment, where the appearance can be changed at will and the digital properties are as valuable as their original counterparts. Stevenson calls his digital environment the Metaverse. Twenty-eight years later, publicly traded companies like Meta (formerly Facebook) and Decentralized Autonomous Organizations (DAOs) like the Decentraland Foundation are working to make Metaverse a profitable reality. This has opened up entirely new income opportunities for retail investors, gamers, digital collectors and developers.
It's important to note, however, that the metauniverse is still in its infancy and its value proposition has yet to be proven. Any investment in Metaverse should be viewed as speculative and high risk.
The smallest variable option for a retail investor looking to buy on the Metaverse is investing in a public company whose business model or profitability is tied to the Metaverse. The list includes:
Meta Platforms Inc (NASDAQ: FB) - In October, Mark Zuckerberg announced that the company formerly known as Facebook Inc. has undergone a major rebranding and changed to Meta Platforms Inc. Following the announcement, Meta launched its virtual reality platform, Horizon Worlds. The Oculus Quest 2 VR headphones from Meta are also one of the hottest gifts of the holiday season. However, it remains to be seen whether the increase in headphone sales will lead to more Horizon Worlds users.
Roblox (NYSE: RBLX) - Roblox is an online metauniverse platform that allows players to create virtual worlds and share them with other Roblox users. Roblox has grown rapidly since its founding in 2006 with 9.5 million independent developers, 24 million unique digital experiences and 49.4 million daily active users - 35% more than a year ago. However, despite these figures, the company is yet to turn a profit.
Boeing (NYSE: BA) - Boeing leverages the meta universe to expand and enhance manufacturing capabilities. In an interview with Reuters, Greg Hislop, chief engineer at Boeing, said the aircraft manufacturer plans to create its own digital environment where employees, computers and robots around the world can communicate and work together seamlessly.
Microsoft (NASDAQ: MSFT) - Microsoft is looking for a niche metaverse in the professional world. The company plans to launch Mesh for Microsoft Teams in 2022. The expansion of the popular video conferencing platform will allow people to create custom avatars and collaborate in 3D holographic environments that transcend geographic boundaries. A key feature of Microsoft Mesh is Holoportation, a tool that allows users to access the aforementioned digital environment with a VR headset. The user appears as a digitally realistic self-image with the possibility of interacting with team members as if in person.
metaverse real estate
Although the meta universe is still in its infancy, platforms like The Sandbox and Decentraland have already started selling digital real estate in the form of irreplaceable tokens (NFTs), digital tokens on blockchain networks that can represent a variety of unique elements. When someone buys a property on the metauniverse, the blockchain network that powers the metauniverse platform reviews the sale and transfer of ownership.
After purchasing a virtual property, NFT meta-universe owners can rent, sell, or build their digital property. Japanese video game maker Atari recently purchased 20 digital lots on Decentraland and set up its own crypto casino. With their own ERC20-based Atari token, players can place bets and earn tax-free cryptocurrency. Atari has also announced that it will open its own virtual hotel complex in 2022.
How to Buy Land on the Metaverse and Other Digital Goods
Several meta-universal platforms have created a marketplace for consumers to buy and sell digital land and other collectibles in the form of NFT. That's the way to do it.
- A user who wants to buy real estate on the Metaverse must specify on which platform he wants to buy digital real estate. Popular choices are Decentraland and The Sandbox, although there are several others. Do your own research before buying land on the Metaverse.
- Users must create a digital cryptocurrency portfolio, a type of computer software that connects to a blockchain network and stores cryptocurrencies and is compatible with the connected blockchain that powers the Metauniverse platform.
- From there, the buyer must gain access to the marketplace of his chosen Metaverse platform and connect his digital wallet to it. The marketplace can usually be found on the metauniverse platform website.
- At this stage, buying digital real estate is very similar to buying real estate in the physical world. Buyers should consider the price, location, and future value of the digital property they are considering purchasing.
- Once buyers identify a plot of land, they have to acquire tokens or coins with which to purchase it and store it in their digital wallet. The type of token or coin required to complete the transaction depends on the metauniverse platform. For example, in order to purchase digital land on Decentraland, consumers must purchase MANA tokens. If he wants to buy land in The Sandbox, he has to buy SAND tokens.
- If the buyer has linked his digital portfolio to the metauniverse marketplace and financed it, he only needs to make a bid for the property or buy the property outright. Property prices are removed from the digital portfolio and the NFT representing the property is brought into the consumer portfolio.
- The same process applies to purchasing other NFT items from the meta-universe, such as avatar clothing and accessories.
Metaverse projects on the blockchain network are operated by exchangeable tokens - shareable and exchangeable tokens. These tokens are used to purchase digital assets such as virtual land or avatar equipment. They can also be traded with other cryptocurrencies or fiat currencies. Some Metauniverse cryptocurrencies also allow their owners to choose solutions within the Metauniverse platform, e.g., B. where money should be invested or which new functions should be introduced first.
Theoretically, the value of the associated token increases with the value of the digital asset. In addition, some meta-universal platforms such as Decentraland burn all MANA tokens used to purchase digital assets, permanently removing them from traffic and adding value to other tokens. The Metauniverse tokens are listed below in order of market capitalization (market cap). This option is inherently risky and should be viewed as a speculative investment. In general, it is advisable to never invest more than you are willing to lose.
Decentraland (MANA) - With a market cap of around $6 billion at the time of writing, Decentraland's MANA token strengthens the Decentraland metaverse and is used as a medium to market the platform.
Axie Infinity (AXS) - Unlike Decentraland's MANA, which is used to purchase digital goods and services, the AXS Axie Infinity token is a management token. AXS owners can vote for proposed solutions that will impact the Axie Infinity ecosystem, including using funds in the community coffers. There are plans going forward to modify the AXS token so that it can be used to purchase digital goods and services from Axie Infinity.
The Sandbox (SAND) - Sandbox focuses on a metaverse of user-generated content, similar to Roblox. SAND tokens are awarded to individuals who take part in The Sandbox alpha user testing. SAND tokens can also be purchased on digital exchanges. SAND is a token for use, administration and betting. SAND owners can use it to purchase digital goods and services, vote on initiatives proposed in The Sandbox, and bet with their SAND to win additional prizes.
Enjin Coin (ENJ) - Enjin is a blockchain gaming company. Unlike The Sandbox or Axie Infinity which only offer a metaverse, Enjin offers its users a variety of interconnected gaming experiences to win. The engine is unique in that its native ENJ token "flows into" every slice of NFT in its ecosystem, providing real value for the digital asset.
The future of the metaverse?
Companies that have invested heavily in the Metaverse spend millions of dollars convincing consumers that the dawn of the Metaverse is nearby. But will it usher in an era of mass adoption and accessible digital interaction or will it become a niche product reserved for gamers and tech enthusiasts of the future? Only time that can answer. For now, retail investors interested in the metauniverse need to explore this platform and test the future value of the metauniverse for themselves.