Into the Metaverse: Ways to invest in the next big phenomenon

Hi there!

I believe the term Metaverse has popped up in many of our lives of late and you may be wondering how you can own a piece of it! Household brands such as Adidas, Nike are going hard into this fascinating, alluring space which is rapidly gaining mainstream attention from famous celebrities as well. Our beloved local singer JJ Lin owns a couple of blue-chip NFTs and metaverse land :D Who knows, we might all live, work and play in 3D virtual cities in the not so distant future! In this post, I will be breaking down the different ways in which one can invest in the Metaverse, suitable for a wide spectrum of risk appetites!

Buying the native tokens of blockchain games

Imo, this is a convenient way to start investing in the Metaverse! Crypto games have their own native tokens which can be purchased on various exchanges, many of which have done really well recently. The integration of NFTs and blockchain technology into games allows users to own their in-game assets (skins, weapons etc), creating productive gaming economies with real-world value, something not possible in the past. Crypto/blockchain-based gaming economies are set to be the future with massive opportunities in this up-and-coming space. Prominent games include Axie Infinity (the most successful play-to-earn game thus far), Decentraland, and also Sandbox, with its token SAND appreciating 6-7x in the past few months.

Buying the token of gaming guilds (broad exposure to a wide array of games, good index play)

Another way is to buy the native token of top gaming guilds such as Yield Guild Games, Merit Circle and GuildFi (guys will love their influencer). These gaming guilds are community-led Decentralised Autonomous Organisations (DAOs) which provide scholarships to players who lack the financial means to start playing. For example, in the Philippines, an Axie Infinity Scholarship covers the starting costs of the game by providing the 3 required Axies, in exchange for a share of the scholars’ earnings. These guilds are also early investors in promising games and are vital to the success of a play-to-earn game. Imo, investing in these guild tokens is similar to investing in a crypto gaming index fund, as one will get indirect exposure to all the games which the guilds are invested in.

To check out the various Metaverse tokens from the gaming tokens to the native guild tokens, hop on here which shows a list of metaverse-related tokens. Clicking into an individual token will show more details, such as the exchanges that they are traded on, price history and a brief description of the project etc.

Buying individual NFTs (avatars and wearables)

Next is buying NFTs (in-game avatars and wearables) which is more risky and requires a significant amount of capital. NFTs are highly illiquid and many of them are likely to not survive in the long term unless they have proven themselves. Blue-chip NFTs include Bored Ape Yacht Club which has partnered with Adidas and is launching a play-2-earn game next year. Other NFTs like CyberKongz VX will also be playable as avatars in the Sandbox in the future. If games such as the Sandbox continue to execute and gain mainstream adoption, the NFTs which are needed to play the game will become very valuable, especially those that are very rare (e.g. Mystic Axies, the rarest class of Axies in Axie Infinity has sold for a million!)

Buying in-game land

The last way will be to purchase in-game land which are also NFTs but can be used to host virtual events/parties and create unique virtual experiences. These land can generate income for their owners, as they can charge other users for using products/services that their land offers. The rapper, Snoop Doggis building a virtual world with his Sandbox land and selling passes offering benefits including access to exclusive items. Established brands like Adidas have also purchased land in the Sandbox metaverse, and the country, Barbados is planning to set up a metaverse embassy. The caveat is that these plots of land are not cheap, with some being sold for millions. It can also be hard to accurately value them, especially if the game is still under development.

Overview of Sandbox land and their notable owners (here)

Final Thoughts

With a flurry of big name brands jumping into the metaverse and many set to follow, the metaverse is poised to be a huge part of our lives going forward. In 2022, things will only get bigger and more exciting! Many AAA-rated, top-tier games such as Illuvium, Star Atlas, Embersword and several others are set to be released. As for those who want exposure to the metaverse but are not yet comfortable with buying gaming tokens/NFTs, holding Ethereum is somewhat a proxy as many hotly anticipated games are built on Ethereum.

This is not financial advice and as with any investment, always do your due diligence and build strong conviction before buying in. Thanks for spending time to read and have a great week ahead!