Metaverse investment opportunities
Metaverse definition and function
The concept of a Metaverse has been around for decades, but with advances in various technologies such as immersive reality (AR, VR, XR) and blockchain, it is becoming more popular and starting to become a reality, creating Metaverse investment opportunities for those willing to explore and invest in this emerging market.
We explain what the Metaverse is, highlight the opportunities and investment possibilities, and introduce the concept of the Metaverse token index.
Figure 1: Examples of different Metaverse use cases and known brands that have started it.
In recent years, the term "Metaverse" has generated a lot of buzz and attention, including from well-known brands and organizations, see Figure 1. These brands are embracing the Metaverse and experimenting with different approaches, driven by a desire to tap into a new generation of customers and stay ahead of the curve.
What is the Metaverse?
The Metaverse is a term used to describe an interoperable network of persistent, virtual worlds with their own economy and identification system.
It is a collective space where users can engage with one another, conduct business, socialize, and engage in other activities. Think of it as a virtual reality version of the internet, where users can interact with each other and their surroundings in real time.
The idea of the Metaverse was first introduced in the 1992 novel "Snow Crash" by Neal Stephenson. In the book, the Metaverse was a virtual reality world where people could interact with each other and engage in commerce. It was a vision of a future where the internet had evolved into a fully immersive experience.
How does the Metaverse work?
The environment is created using computer graphics and can be customized to suit the needs of individual users.
Once inside the Metaverse, users can interact with each other in real-time. They can chat, voice call, or even meet up in virtual locations. They can engage in various activities, such as gaming, shopping, or attending virtual concerts. The possibilities are endless, learn more about the areas that are most disrupted below.
The Metaverse is not a single entity, but a collection of virtual worlds that can be connected. These virtual worlds can be created centrally or decentrally, and users can access them from anywhere in the world. Each virtual world has its own rules and regulations, and users can choose which ones they want to participate in.
Metaverse disrupting many sectors
Figure 2: Companies working on the metaverse, at least half of them are decentralized.
There are now more than 500 companies that are actively working on the Metaverse. These companies range from small startups to large corporations like Meta (formerly known as Facebook) which provide a solid base for different investment opportunities in the Metaverse.
Many of these companies are focused on developing their own Metaverse platforms, while others are creating products and services that can be used within existing Metaverse environments.
One interesting trend that has emerged in the Metaverse industry is the rise of decentralized Metaverse platforms using blockchain technology. At least half of the 500 companies shown in Figure 2 are decentralized.
These platforms are governed by a distributed network of users, rather than a single centralized entity. This means that users have more control over the platform and that it is more secure and transparent.
The fact that more than 500 companies, including big corporations, are actively working on the Metaverse is a clear indication that this technology is here to stay.
The Metaverse has the potential to change the way we interact with each other and our surroundings. It could revolutionize the way we work, play, learn and conduct business which offers another potential layer of investment opportunity.
Figure 3: Metaverse use cases.
The classroom of the future: Virtual lecture rooms in the metaverse provide a whole new level of flexibility and immersion for students. Allowing for 24/7 access to education "on the go" from around the world.
Social Media 3.0 and virtual office: A new era of virtual communication, interaction and collaboration. With virtual office meetings and group activities, remote work will become even more seamless and efficient.
Immersive movies and games: The Metaverse is transforming the entertainment industry with immersive movies and games that blur the lines between reality and fiction. With the ability to "jump" into movies and play realistic games with cross-platform assets, the Metaverse is offering new levels of engagement and interaction.
- Web3 online shopping/promotion: Virtual "brick and mortar" stores are emerging as digital points of sale, providing customers with a unique shopping experience that mimics traditional in-person shopping.
Advancements in immersive-reality tech are driving the adoption of the metaverse.
Figure 4: Advancements in immersive-reality tech.
Advancements in immersive-reality technology, such as IoT, mixed reality, virtual reality, and augmented reality, are propelling the adoption of the Metaverse. These technologies offer new levels of immersion, interactivity, and engagement, allowing users to experience the Metaverse in ways that were previously unimaginable.
As these technologies become more advanced and widely available, they are helping to break down barriers to entry and drive the adoption of the Metaverse across a range of industries. With the potential to transform the way we work, learn, and play, the Metaverse represents a new frontier in the evolution of technology.
Humans struggle to conceptualize exponential growth and underestimate long-term progress.
Figure 5: The long-term progress of the Metaverse.
Humans have a tendency to struggle with the concept of exponential growth and underestimate long-term progress.
While we may be able to appreciate the immediate benefits of the Metaverse, such as immersive entertainment and virtual collaboration, it can be difficult to fully comprehend the long-term potential of this technology.
Figure 5 helps to get an idea of how much the Metaverse sector could grow over the next few years and the steps involved in this progress.
How to invest in the Metaverse
Investors have a unique chance to take advantage of the Metaverse's predicted growth, but the question remains: What are the opportunities to invest in the Metaverse?
Investing into the open metaverse today is complex and inaccessible.
Figure 6: Metaverse investment options.
There are several avenues for investing in the Metaverse, including stocks, venture capital (VC) funds, and tokens.
Stocks offer a way to invest in companies that are involved in developing Metaverse technologies and platforms. Some examples of companies that have been active in the Metaverse include Meta (formerly known as Facebook), Roblox, and Nvidia. By investing in these companies, investors can potentially benefit from the growth of the Metaverse as these companies expand and develop new offerings.
Venture capital funds provide another option for investing in the Metaverse. These funds invest in early-stage companies that are developing innovative Metaverse technologies and applications. Investing in a VC fund can provide access to a diversified portfolio of startups, and potentially higher returns than investing in individual stocks.
Tokens, such as cryptocurrencies and non-fungible tokens (NFTs), are also becoming an increasingly popular way to invest in the Metaverse. NFTs, in particular, offer a way to invest in unique digital assets, such as virtual real estate or in-game items, which can appreciate in value as the Metaverse grows in popularity.
We, at 21e6 Capital, believe that the most promising investment opportunity for returns lies with carefully selected Metaverse cryptocurrency tokens. Therefore a Metaverse token fund or Metaverse index would be a logical choice.
Learn more about our Metaverse index proposal in this video:
21e6 Capital Metaverse index
Together with ITSA and Adaptivv, we are creating a sophisticated and future-proof Metaverse index logic to provide a lucrative opportunity to invest in Metaverse tokens.
Figure 7: Metaverse index in partnership with ITSA and adaptive.
ITSA aims to promote the development and implementation of comprehensive market standards for blockchain- and DLT-based cryptographic tokens.
Adaptivv is an ETH Spin-Off (formerly known as Openmetrics Solutions AG), with a focus on advanced statistical methods and financial engineering. Their core technologies are based on the latest academic research developed at ETH Zurich and affiliated universities.
Figure 8: Metaverse token identification.
Together with ITSA, we have identified current metaverse tokens like Chiliz (CHZ), Decentraland (MANA), and Sandbox (SAND) as seen in Figure 8. ITSA is a non-profit association based in Berlin, focused on the standardization of crypto asset identifiers and classifications. They have been working on their classification framework for over 4 years and are integrated with the most important financial data providers in Germany, like WM Datenservice.
ITSA has also begun identifying metaverse tokens. From the example in Figure 7, we can see that even in the sector “Metaverse”, there are already more niches emerging: Chiliz is focused heavily on sports entertainment and fan experiences, and have partnered with FC Barcelona and Paris Saint-Germain.
Decentraland, a place where anyone can buy and build on a plot of virtual land, is becoming quite well-known for the brand experiences being built on there. J.P. Morgan is a prominent example.
Thirdly, The Sandbox is emerging as a world focused on gaming and entertainment.
A crypto token index is relevant because it can cover all the niches present and developing in the metaverse sector.