THE METAVERSE is part of the next phase of the internet some are calling Web 3.0 and in the coming years, we could all be working, socialising and investing in this ecosystem.
Whether that means attending a virtual concert (Lil Nas X’s Roblox concert got 33m views) or shopping for a new suit or designer handbag for our digital avatar and going on a virtual date, everyone from tech billionaires to gamers and developers appear eager to get a slice of it before the future arrives.
How to invest in the metaverse?
The metaverse market could reach $800 billion by 2024 which would be an increase of 13.1 per cent year-on-year according to Bloomberg Intelligence.
But how can I invest in the metaverse now? Here are four ways
Metaverse stocks
Investors keen to be apart of the metaverse could invest in companies involved in the development of the metaverse such as Facebook (now Meta) and Roblox.
Facebook changed its name to Meta in late October 2021 and said “the metaverse is the next evolution of social connection.
“Our company’s vision is to help bring the metaverse to life, so we are changing our name to reflect our commitment to this future.”
The social media giant already has an Oculus VR headset and recently launched its first smart glasses with Ray-Ban to build on its hold in the space.
But it’s not just Meta who plan to play a role in the growth of the metaverse.
A week after Facebook announced its vision for the metaverse, Microsoft said it was working towards creating an “enterprise metaverse”.
Video game Roblox, which went public in 2021, already allows users and developers to create digital worlds and its CEO has talked about shopping and conducting business on the platform in the near future.
Roblox have said the metaverse is a place where “people can come together within millions of 3D experiences to learn, work, play, create and socialise.”
Unity Software Inc, which develops software used to design video games, has plans to develop technology to build the metaverse.
Computer chip maker Nvidia Corp created its Omniverse platform to allow 3D worlds to connect in a shared virtual universe.
Omniverse, which is currently being used to create simulations of real-world buildings and factories, could be the network which metaverses are built on.
Snapchat has been making custom avatars and augmented reality filters to overlay photos and videos in the real world for a long time.
In 2021 Snap Inc released their first augmented reality glasses, available for developers to experiment with creating experiences for the accessory.
Epic Games, the company behind video game Fortnite, has started to create social experiences like virtual music concerts.
Metaverse NFTs from virtual real estate to luxury goods
Crypto gaming platforms such as Decentraland and The Sandbox have made it possible for people to purchase virtual parcels of land and build their own environments using NFTs.
According to UBS, investment firms have been ploughing millions into digital land across a number of metaverse platforms from Decentraland to The Sandbox.
Total sales within the virtual world of The Sandbox have surged and daily trading volume of NFTs exceeded $180 million in November 2021.
Property values have skyrocketed on Decentraland and land parcels – measuring 16 meters by 16 meters or 2755.56 square feet – now sell for. upwards of $6,000 despite exchanging hands for as little as $20 in the past.
Virtual real estate company Metaverse Group have started developing in Decentraland and created The Fashion District, where users can shop for virtual clothes from real brands such as Gucci or Prada.
Metaverse Group CEO Lorne Sugarman said: “We think the Fashion District purchase is like buying on Fifth Avenue back in the 1800s … or the creation of Rodeo Drive.”
In the metaverse games users can exchange cryptocurrency for unique items, avatars or more and we’ve already seen Gucci, Burberry, Nike, Adidas and more brands announce plans to offer digital versions of their clothing.
Metaverse ETFs (exchange traded funds)
A metaverse stock ETF allows investors to purchase a fund which includes companies that are involved in the industry.
The Roundhill Ball Metaverse ETF (META) for example provides investors with exposure to companies like Nvidia, Microsoft, Roblox, and others.
Cryptocurrency tokens
Investors have returned big profits on metaverse cryptocurrency tokens in 2021 from Gala Games (GALA) to Decentraland (MANA), The Sandbox (SAND) and Axie Infinity (AXS) and further growth is expected in the space.
Gala Games (GALA) – creator of Town Star – increased in value by over 50,000 per cent in 2021 while Axie Infinity (AXS) was up nearly 20,000 per cent, The Sandbox (SAND) nearly 15,000 per cent and Decentraland (MANA) nearly 5,000 per cent.
