How to Invest in the Metaverse

Future tech aficionados can invest in the next digital frontier in a variety of ways, including metaverse real estate and stocks.

“Snow Crash,” Neal Stephenson’s third novel, was published in 1992. In it, Stephenson’s protagonists interact in a wholly digital world where appearances may be modified on the fly and digital real estate is just as valuable as actual estate. The Metaverse was Stephenson’s name for his computerized environment.

Public enterprises such as Meta (previously Facebook) and decentralized autonomous organizations (DAOs) such as the Decentraland Foundation have been attempting to make the metaverse a financial reality for the past twenty-eight years. Retail investors, gamers, digital collectors, and developers all have access to entirely new revenue streams.

It’s worth noting, though, that the metaverse is still in its early stages, and its value proposition has yet to be validated. Any metaverse investment should be viewed as speculative and high-risk.

Investing in publicly traded companies whose business strategies or profitability are related to the metaverse is the least volatile choice for retail investors looking to purchase into the metaverse. The following items are on the list:

Meta Platforms Inc (NASDAQ: FB) is a company that develops and sells social media platforms. Mark Zuckerberg stated in October that the firm formerly known as Facebook Inc. would be rebranded as Meta Platforms Inc. Since the announcement, Meta has created Horizon Worlds, a virtual reality metaverse platform. The Oculus Quest 2 VR headset from Meta was also one of the most popular holiday gifts. However, it remains to be seen whether higher headset purchases will lead to an increase in Horizon Worlds users.

Roblox (NYSE: RBLX) — Roblox is an online metaverse platform that allows users to create and share virtual environments. Since its debut in 2006, Roblox has developed significantly, with 9.5 million independent developers, 24 million unique digital experiences, and 49.4 million daily active users — an increase of 35% year over year. Despite these figures, the business has yet to make a profit.

Boeing (NYSE: BA) is a company that manufactures airplanes. Boeing is utilizing the metaverse to enhance and expand its manufacturing capabilities. Greg Hyslop, Boeing’s top engineer, said in an interview with Reuters that the jet maker is planning to develop a proprietary digital environment where its human, computer, and robot employees can communicate and collaborate seamlessly throughout the globe.

Microsoft (NASDAQ: MSFT) is a software company based in Redmond, Washington. Microsoft is attempting to carve out a metaverse niche in the business sphere. Mesh for Microsoft Teams will be available in 2022, according to the business. Individuals will be able to create individualized avatars and work in a holographic 3D environment that crosses geographic boundaries using the add-on to the popular video conferencing platform. Holoportation, a mechanism that allows users to access the previously described digital environment with a VR headset, will be a fundamental element of Microsoft Mesh. The user appears as a digital lifelike representation of himself, with the ability to interact with team members in real time.

Despite the fact that the metaverse is still in its early stages, platforms such as The Sandbox and Decentraland have already begun selling digital real estate in the form of non-fungible tokens (NFTs), which are digital tokens on blockchain networks that can represent a wide range of unique goods. The blockchain network that powers the metaverse platform validates the sale and transfer of ownership when an individual buys metaverse real estate.

The owner of the metaverse real estate NFT can rent, sell, or develop on his digital property once it has been purchased. Atari, a Japanese video game company, has purchased 20 digital land plots in Decentraland and launched its own crypto casino. Gamblers can place bets and get wins in crypto tax-free using the Atari token, which is based on the ERC20 standard. Atari has also revealed that in 2022, it would open its own virtual hotel complex.

Several metaverse systems have built marketplaces where users can purchase and trade NFTs representing digital land and other items. Here’s how to go about it.

A user who wants to buy digital real estate in the metaverse must first figure out which platform he wants to buy it on. Decentraland and The Sandbox are two popular choices, but there are others. Before purchasing any metaverse land, do your homework.

The user must first establish a digital cryptocurrency wallet, which is a type of computer program that connects to a blockchain network and saves cryptocurrency while also being compatible with the metaverse platform’s blockchain.

After that, the buyer must go to his selected metaverse platform’s marketplace and link his digital wallet to it. Typically, marketplaces may be found on metaverse platform websites.

Buying digital real estate looks a lot like buying real estate in the physical world at this point. A buyer should think about the price, location, and future value of the digital land he wants to buy.

Once a buyer has found a plot of land, he must obtain the tokens or coins necessary to purchase it and put them in his digital wallet. The type of token or coin required to complete the transaction differs depending on the metaverse platform. To buy digital land in Decentraland, for example, a user would need to buy MANA tokens. SAND tokens would be required if he wanted to purchase land in The Sandbox.

If the buyer has already connected and funded his digital wallet with the metaverse marketplace, all he has to do now is place a bid on the land or purchase it outright. The land’s cost will be deducted from the digital wallet, and the NFT representing the land will be transferred to the user’s wallet.

Buying additional metaverse NFT things, such as clothing and accessories for avatars, follows the same procedure.

Fungible tokens — tokens that are divisible and may be swapped — are used to power Metaverse initiatives on blockchain networks. These tokens are used to buy digital goods such as virtual land and avatar clothes. They can also be exchanged for other cryptocurrencies or fiat money. Certain metaverse coins also allow their owners to vote on metaverse platform decisions such as where money should be invested or which new features should be released first.

In theory, if the value of digital assets rises, so would the value of the tokens that go with them. Furthermore, some metaverse platforms, such as Decentraland, burn all MANA tokens used to buy digital assets, thus removing them from circulation and raising the value of the remaining tokens.

The tokens in the metaverse are listed below in descending order by market capitalization (market cap). These investments are inherently risky and should be viewed as speculative. As a general guideline, you should never invest more money than you can afford to lose.

Decentraland (MANA) — Decentraland’s MANA token powers the Decentraland metaverse and is used as a medium of exchange on the platform’s marketplace, with a market cap of about $6 billion at the time of writing.

Axie Infinity (AXS) is a governance token, unlike Decentraland’s MANA, which is used to buy digital products and services. Axie Infinity owners will be able to vote on proposed decisions that would effect the ecosystem, such as how cash in the community treasury are used. The AXS token will be modified in the future to allow it to be used to purchase digital products and services on Axie Infinity.

The Sandbox (SAND) — Like Roblox, The Sandbox is centered on a metaverse of user-generated content. Individuals who participate in The Sandbox’s alpha user testing receive the SAND token. SAND tokens can also be bought on cryptocurrency exchanges. SAND is a token that can be used for utility, governance, and staking. SAND holders can use it to buy digital goods and services, vote on proposed initiatives within The Sandbox, and stake their SAND for additional benefits.

Enjin Coin (ENJ) is a blockchain-based gaming platform. Unlike The Sandbox and Axie Infinity, which only offer a single metaverse product, Enjin provides a variety of interconnected play-to-earn gaming experiences to its consumers. Enjin is unusual in that its native token, ENJ, is “injected” into every NFT created inside its ecosystem, arguably giving digital assets real-world worth.

Companies with a lot of money invested in the metaverse are spending millions of dollars to persuade customers that the metaverse has arrived. Will it, however, bring in a new era of broad acceptance and barrier-free digital contact, or will it remain a niche product for gamers and future tech enthusiasts? Only time will tell if this is true. For the time being, retail investors interested in the metaverse should look into these platforms and assess the metaverse’s future value.

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