Categories: Market

Blockchain Super Diverse Startups: Unparalleled Investment Potential

Neal Stephenson, a celebrated science fiction writer who coined the term “Metaverse” in his first 1992 bestseller and groundbreaking novel, snow. Now that concept is becoming a reality and you can also invest in super matches. In Ready player one, 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.

As early as September, Facebook boss Mark Zuckerberg was clearly interested in promoting the Metaverse. During a recent conference call, Facebook made it clear that it wanted to bring communities, creators and e-commerce together in a metaverse, with Zuckerberg saying:

“Our overall goal in all of these initiatives is to bring supermarkets to life.”

And just last week Facebook changed its name to Meta and announced plans to develop “Metaverse”.

How big can metaverses get?

There are already many family names out there making serious money in the field, such as Roblox and Fortnite. These are complete virtual reality worlds in which users exist through avatars. Lesser-known examples of virtual reality include Decentraland, Upland, and Sandbox, as well as Victoria VR, another platform coming soon.

From an investment perspective, we can say with confidence that this boom in virtual reality and hyperreverse is comparable to the dot-com boom in the late 1990s, Metaverse, which are capable of surpassing and replacing the web as it currently exists.

Related: New industry, new rules: Build an unbiased metaverse

There are already a number of companies in this space like Fortnite that have sustained growth until they are comfortably seated next to Facebook, Google, Amazon, and other tech giants. Epic Games, the creators of Fortnite, recently raised $ 1 billion, with Sony investing $ 200 million in this funding round. Facebook is investing a lot of resources and money in a new workplace and a protometaverse VR platform called Horizon.

Brands also rely heavily on virtual reality. Some brands have sold direct to Avatars (D2A) or Gucci sells a virtual bag that costs more than the real one. Nike sells virtual Jordans in Fortnite and Coca-Cola starts selling virtual wearables in Decentraland.

Bloomberg estimates the size of the Metaverse market to be $ 800 billion. While this is still in its infancy, savvy crypto investors can help develop token swaps and trades from high-growth startups.

Therefore, many smart investors are betting that the virtual reality boom will accelerate. One day – possibly in the next five years – there will be a virtual reality platform that can compete with the major social networks.

How can you invest in Metaverse?

Cryptocurrencies are already part of these virtual realities, with various platforms accepting crypto as a payment option for virtual goods including VR-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, hard work has been done. Matthew Ball, futurist and founder of Roundhill Investments, recently signed up for this Metaverse ETF along with Jacob Navok, CEO of Genvid Technologies.

Related: Metaverse: Will It Be A Decentralized Paradise Or A Centralized Autocracy?

The Metaverse ETF is an exchange traded fund (ETF) that works similarly to the stock market, with the exception of cryptocurrency-based investments in Metaverse companies. It is a collection of investments in a wide range of companies – known as an Index – that gives investors access to a broad segment of the Metaverse market.

Currently, the Metaverse ETF has an average market cap of $ 74 billion, with investments spread across 41 companies (stocks) in eight countries. This includes investments in infrastructure companies like Cloudflare and Nvidia, gaming engines like Unity and Roblox, and metaverse content pioneers from Tencent, Sea and Snap.

Because the index is sold on the New York Stock Exchange (NYSE), it only includes publicly traded companies, not private companies. This means that if you want to invest at an earlier stage, cryptocurrencies and other investors will have to look elsewhere to be a little closer to the action.

For early stage investments, the best options would be in the crypto space. Game, hardware and content creation companies will launch an Initial Coin Offering (ICO) and Initial DEX Offering (IDO) token sale, meaning investors can participate long before these companies go public.

Related: Science fiction or blockchain reality? OASIS ‘Ready Player One’ can be built

If we look at the total addressable size of this market – and include key growth segments like developers, hardware, advertising, and e-commerce – it could be worth more than $ 1 trillion. If we also consider how important the internet is to everyday life, Metaverse could be in much less time. As an investment opportunity, Metaverse companies, especially those in the ICO and IDO stages, have unprecedented upside potential, provided, of course, you choose wisely.

We’re witnessing something exciting and playing part of it. The internet and the way we experience reality will never be the same again, with the myriad of benefits from the rapid expansion of supermarkets and virtual reality.

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 goods sectors.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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