Neal Stephenson, a popular science fiction writer, coined the term “Metaverse” in his first blockbuster novel, Snow Crash, in 1992. Now that concept is becoming a reality, and you can also invest in Metaverse. on Ready player one, The OASIS is another example of advanced virtual reality. Many other science fiction writers like Ian M Banks have developed similar concepts and used them in their novels.
In September, Facebook boss Mark Zuckerberg was clearly interested in promoting the Metaverse. In a recent results presentation, Facebook made it clear that they want to unite communities, creators and eCommerce in the Metaverse, with Zuckerberg saying:
“Our overall goal in all of these initiatives is to help bring the metaverse to life.”
And last week Facebook changed its name to Meta and announced plans to develop the “Metaverse”.
How big could metaverse lines get?
There are already numerous well-known names that are making big bucks in this area, such as Roblox and Fortnite. These are complete virtual reality worlds in which users exist through avatars. Slightly less well-known examples of virtual reality are Decentraland, Upland and Sandbox, as well as Victoria VR, another platform that will be launched shortly.
From an investment perspective, we can safely say that this explosion of virtual reality and metaverse is akin to the dot-com boom in the late 1990s and will replace the web as it currently exists.
Some of the companies in this space, like Fortnite, could continue to grow until they are comfortably seated next to Facebook, Google, Amazon, and other tech giants.. Epic Games, the makers of Fortnite, recently raised $ 1 billion and Sony invested $ 200 million in this funding round. Facebook is investing a lot of resources and money in a new workplace and a proto-metaverse virtual reality platform called Horizon.
Brands also rely heavily on virtual reality. Some brands already sell direct to Avatars (D2A) or Gucci sells a virtual bag that costs more than a real one. Nike sells virtual Jordans in Fortnite and Coca-Cola started selling virtual wearables in Decentraland.
Bloomberg has estimated the size of the Metaverse market at $ 800 billion. Even if this is in the start-up phase, smart crypto investors can contribute to the growth of Metaverses and trade the tokens of high-growth startups.
As a result, many savvy investors are betting that this virtual reality boom will only accelerate. On that day, possibly in the next five years, there will be a virtual reality platform that competes with the major social networks.
How do you invest in Metaverse?
Cryptocurrencies are already part of these virtual realities, with various platforms accepting cryptocurrencies as a payment option for virtual goods, including virtual reality-based real estate. Players in Decentraland and The Sandbox can set up virtual businesses like casinos and theme parks and then monetize them.
When it comes to crypto investors benefiting from this trend, some of the hard work is already done.. Matthew Ball, futurist and founder of Roundhill Investments, recently registered this Metaverse ETF with Jacob Navok, CEO of Genvid Technologies.
Metaverse ETF is an exchange traded fund (ETF) that works much like a stock market, with the exception of crypto-based investments in Metaverse companies. It is a collection of investments in a wide variety of companies known as an index that provides investors with access to a broad segment of the Metaverse market.
Today, the Metaverse ETF has an average market capitalization of $ 74 billion, with investments spread across 41 companies (stocks) in eight countries. This includes investments in infrastructure companies like Cloudflare and Nvidia, game engines like Unity and Roblox, and Metaverse content pioneers from Tencent, Sea and Snap.
As this index is sold on the New York Stock Exchange (NYSE), it only includes publicly traded companies, not private ones. This means that if they want to invest at an earlier stage, cryptocurrencies and other investors should look elsewhere to be a little closer to the action.
For early stage investments, the best options are in the crypto space. Game, hardware and content creation companies will start selling tokens for Initial Coin Offering (ICO) and DEX Initial Offering (IDO), which means investors can participate long before these companies are released.
If we look at the total addressable size of this market and include core growth segments like developer, hardware, advertising, and e-commerce, it could be worth more than $ 1 trillion. If we also consider how important the internet is for everyday life today, the metaverse could become in much less time. As an investment opportunity, Metaverse companies, especially those in the ICO and IDO stages, are unprecedented in their upside potential, provided you choose wisely, of course.
We are witnesses and we are part of something exciting. The internet and the way we experience reality will never be the same again, with numerous benefits from the accelerated expansion of metaverse and virtual realities.
This article does not provide investment advice or recommendations. Every step of trading and investing involves risk, and readers should do their own research when making a decision.
The viewpoints, thoughts, and opinions expressed herein belong solely to the author and do not necessarily reflect the views and opinions of Cointelegraph.
Johnny lyu is CEO of KuCoin, a cryptocurrency exchange founded in 2017. Before joining KuCoin, he gained extensive experience in the e-commerce, automotive and luxury industries.