Metaverse Land

Consensus suggests that many future experiences within the metaverse will unfold in immersive 3D settings, likely through VR headsets. These realms will comprise virtual "land," which might manifest as open fields, urban plots, or high-rise floors.

On these digital parcels, creators will establish stores, stages, educational institutions, and various venues—essentially anything that enhances our digital existence. Several such virtual environments are already underway.

The Sandbox and Decentraland stand out as frontrunners in this domain, each featuring approximately 100,000 parcels of land. Other notable players include NFT Worlds, World Wide Webb, Somnium Space, and the much-anticipated Otherside by Yuga Labs, set to launch shortly.

The rationale for investing in virtual land parallels that of real estate: some virtual worlds will inevitably attract more visitors than others, mirroring the popularity of certain real-world locations. Given the limited nature of land, demand will likely drive up the value of each plot.

Additionally, some parcels will inherently hold more value than others. Larger plots typically command higher prices, and central locations are generally more desirable, akin to the premium associated with beachfront properties.

Your neighbors also influence value. For instance, proximity to a well-frequented gathering spot in Decentraland could significantly enhance your plot's visibility and traffic.

However, some argue against this premise. New virtual worlds continuously emerge, and land can be expanded easily, potentially diminishing the scarcity factor. Moreover, location may seem irrelevant as users can effortlessly navigate to any point on a map.

I remain ambivalent regarding these points, as my understanding of each virtual world is limited. Nevertheless, it's evident that many of these digital plots have proven to be lucrative investments in the past. Whether you choose to purchase a plot or not, grasping this foundational metaverse concept is crucial.

Metaverse Land to Explore: - The Sandbox - Decentraland - NFT Worlds - Worldwide Webb - Ethereum Towers

Metaverse Tokens

Numerous virtual worlds mentioned above have their proprietary cryptocurrency tokens, functioning as mediums of exchange within their ecosystems. For instance, The Sandbox utilizes the $SAND token, Decentraland employs $MANA, and NFT Worlds has $WLRD.

As user engagement within a specific virtual world increases, so too does the demand for its native currency, thereby raising its value—at least in theory.

Similar to virtual land, many of these tokens have shown strong investment potential historically. Time will reveal if this trend endures and which tokens will excel.

Metaverse Tokens to Explore: - $SAND (The Sandbox) - $MANA (Decentraland) - $WRLD (NFT Worlds) - $CUBE (Somnium Space) - $APE (Yuga Labs / The Other Side) - $AXS (Axie Infinity)

NFT Avatar Projects

Numerous NFT avatar initiatives harbor lofty aspirations for the metaverse, aiming to create virtual venues for community gatherings, discussions, and socializing, accessible primarily to avatar owners.

Currently, it appears that nearly all avatar projects intend to develop something within the metaverse, with varying approaches. Some are constructing their own virtual worlds or games, while others are integrating within existing platforms.

I recommend exploring a diverse array of projects to assess their roadmaps and select those with the most intriguing plans and capable teams. Below are a few NFT projects I personally endorse.

NFT Avatar Projects to Explore: - The Doggies (Snoop Dogg) - Ethaliens - Forest Spirits - Sherbet

Blockchains

All the virtual environments, their associated tokens, and the aforementioned NFT avatar initiatives rely on blockchain technology. Most of the leading projects are built on the Ethereum blockchain, while others utilize Solana, Terra, WAX, Tezos, and the BNB Smart Chain, among others.

As activity on these blockchains rises, so too does the value of their native cryptocurrencies—at least theoretically and over the long term. Many have outperformed the broader crypto market recently.

While these blockchains do not represent direct investments in the metaverse, as they serve numerous other applications—including DeFi (decentralized finance), gaming, and file storage—they are likely to benefit irrespective of which virtual world prevails.

Blockchains to Explore: - Ethereum ($ETH) - Solana ($SOL) - BNB Chain ($BNB) - Terra ($LUNA) - Avalanche ($AVAX) - WAX ($WAX) - Tezos ($XTZ)

Ethereum Scaling Solutions

Ethereum stands as the preeminent blockchain ecosystem, though it is not without limitations. The network often experiences congestion during spikes in activity, leading to skyrocketing transaction fees. Scaling solutions aim to address these issues.

Ethereum is categorized as a "layer 1" blockchain. Consequently, layer 2 blockchains and side chains have been developed to facilitate transactions more efficiently. Prominent solutions in this arena include Polygon ($MATIC), Immutable X ($IMX), and Loopring ($LRC).

Much like Ethereum and other layer 1 blockchains, these scaling solutions are not direct bets on the metaverse; they are equally applicable for DeFi, gaming, and NFTs. However, their significant traction and increasing value over recent months warrant a closer examination.

Scaling Solutions to Explore: - Polygon ($MATIC) - Loopring ($LRC) - Immutable X ($IMX)

Metaverse Stocks

The metaverse has transitioned from a niche concept among crypto enthusiasts to a mainstream consideration. Roblox has been crafting immersive virtual experiences for years, and many large corporations have begun integrating the metaverse into their business models.

Meta, formerly Facebook, exemplifies this shift. Mark Zuckerberg has grand ambitions for the metaverse and aims to be at the forefront of its development. His acquisition of Oculus in 2014 and the recent rebranding speak volumes.

Nike launched its metaverse store, Nikeland, in November last year, followed by the acquisition of RTFKT, a studio specializing in digital sneakers and artifacts. Adidas is also making strides in this direction.

Match Group, the parent company of Tinder, seeks to introduce avatar-based experiences in the virtual realm, including a virtual currency, Tinder Coins, and the virtual environment, Single Town.

Companies like Nvidia, Unity, and Cloudflare provide the necessary infrastructure, software, and security for businesses venturing into the metaverse. Many additional "metaverse stocks" are readily discoverable online.

Metaverse Stocks to Explore: - Roblox ($RBLX) - Meta ($FB) - Nike ($NKE) - Match Group ($MTCH) - Nvidia ($NVDA) - Unity ($U) - Cloudflare ($NET)

Metaverse Indexes

I personally advocate for index investing as opposed to selecting individual stocks. Fortunately, there are options available for metaverse investments, though they come with certain trade-offs.

Several metaverse ETFs (Exchange-Traded Funds) are currently available on the stock market. Notable examples include the Amplify Transformational Data Sharing ETF, Fount Metaverse ETF, Roundhill Ball Metaverse ETF, and Evolve Metaverse ETF.

These ETFs inherently focus exclusively on publicly traded companies. For those seeking exposure to metaverse equities, these funds could be an effective avenue.

Beyond the stock market, the Metaverse Index offers an alternative, available as a crypto token ($MVI) on platforms like Uniswap, Hoo, or BKEX. However, it is subject to restrictive criteria.

While ETFs bypass all crypto assets, the MVI excludes stocks entirely. Therefore, investing in both an ETF and the MVI seems logical, but the MVI is confined to Ethereum-based tokens. While this is not entirely problematic—given Ethereum's dominance in metaverse development—it does exclude other valuable blockchains.

What concerns me most is the actual tokens included in the index. Besides Decentraland and The Sandbox, I wouldn't classify most of the 16 tokens in the index as genuine metaverse assets. While I personally own many of them, I consider them part of my gaming and NFT investments, such as Rarible and Audius, which are an NFT marketplace and a music streaming service, respectively.

Thus, while the concept of a comprehensive metaverse index is appealing, the current crypto option lacks merit. I encourage monitoring for emerging opportunities, as a suitable solution will eventually arise. In the meantime, consider exploring one of the leading metaverse ETFs.

Indexes to Explore: - Amplify Transformational Data Sharing ETF ($BLOK) - Fount Metaverse ETF ($MTVR) - Roundhill Ball Metaverse ETF ($METV) - Evolve Metaverse ETF ($MESH.TO) - Metaverse Index ($MVI)

Closing Thoughts and a Note on Gaming

As illustrated throughout this article, numerous avenues for investing in the metaverse revolution exist. The right choice for you will depend on individual circumstances, risk tolerance, initial capital, and various other factors.

I would like to conclude with a note regarding gaming, as immersive open-world games arguably fit the metaverse definition. However, I consider them a distinct category.

Numerous new games, particularly those native to crypto, are consistently in development, presenting a variety of investment opportunities that I plan to explore in greater detail in future articles. If this topic piques your interest, conducting some preliminary research would certainly be beneficial.

Originally published at https://techmoneyculture.com on April 21, 2022.

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