Different Investments In The Metaverse

Although the primary focus of the metaverse is on the consumer side, it’s important to also explore the investment opportunities.

Over the past year, the term “metaverse” has seen a surge in popularity. The keyword was mentioned more than 135% in Q4 2021. Although the idea of a metaverse sounds intriguing, it became mainstream quickly after Facebook changed its name to Meta.

Other major players in tech have followed their lead. Google and Microsoft have made billions of dollars in metaverse technology. As expected, much of the talk is about how the metaverse can change people’s lives in the same way that the Internet did in the late 20th century.

Mainstream media tend to focus on the consumer side of the metaverse. However, it is equally important that mainstream media explore the investment opportunities associated with it. Many new terms, such as cryptocurrency, digital real estate, and non-fungible tokens, (NFTs), are used in conjunction with metaverse. But what do these terms mean?

Investment Ideas in the Metaverse

Although the metaverse is still in its infancy, it may not reach its full potential until the end of this decade. This potential has opened up a wealth of investment opportunities for startups and tech giants as they rush to create their own virtual worlds.

This raises the question: Which is right, ‘the Metaverse‘ or? The metaverses’?

It is yet to be seen if the multitude of groups creating their own virtual worlds will result in a vast network of interconnected virtual worlds controlled and managed by Meta. Or will there be a multitude of contributions and projects, powered by Web3 or blockchain technology?

Many are betting on the latter which means that digital assets like cryptocurrencies and NFTs can be large investments in the metaverse.

The land is one of the most important investments in the metaverse. These virtual properties can be bought and owned using digital assets like NFTs. This brings up an interesting question: Are NFTs a new asset?

NFTs – Digital Art or a Brand New Asset Class

NFTs, like the metaverse, have seen a surge in popularity over the past year. There are many opinions on the subject, with some in favor and others against.

NFTs are a myth. They are just digital art pieces that can be copied and downloaded in a few clicks.

Proponents see much more. Blockchain experts recognize that NFTs are a natural human desire.

“We all desire that spark, that uniqueness that makes us stand out. There are also rare items in these [NFTs ]… Collectors want to collect the things that no one else has.”

These are the words and thoughts of Anas Bhurtun (CEO, co-founder of Arts DAO). He believes that NFTs have boomed due to their rarity.

People always want what others don’t have. These tokens, which can only be given one NFT, speak to an individual’s desire for something different and to prove that they are special.

What does this have to do with investing in the metaverse NFTs can be more than art. The bridge art and other assets are now digital assets themselves.

You can see things that you won’t find in traditional art spaces with NFTs. They are therefore one of the most valuable investments in the metaverse.

Bhurtun believes that the NFT is on the verge of maturation. It is becoming more like an asset class, which indicates that it has been financialized. These NFT holders are basically investors.

Enzo Villani is the founder and CEO of Alpha Sigma Capital. He had these words to say about NFTs and digital assets.

You would be able to borrow against it. Every digital asset will have someone who can lend against it and who will actually collateralize the asset. This is what we are trying to do. These assets are not collateralized and cannot be in the future. These NFTs can be owned, but they are valuable and you can borrow against them. This is very fascinating.

These sentiments are echoed by Nassim, a VC executive. “There are a lot of conversations about how to merge Defi with NFTs and a lot more products around how you can collateralize a loan against your NFT. This is what I find fascinating.

NFTs are not a new asset class. Others have reservations. Omar Item is the Arca MD and sees NFTs merely as a wrapper.

It’s a wrapper for a smart contract, which allows for instant transactions. It is transparent and allows liquidity to be created on otherwise ineligible asset classes. An NFT based on real property is not an asset class. The underlying asset is real.

He sees NFTs, however, as “the future for fundraising, for startups, and beyond”.

DAOs, and The Metaverse

The metaverse ecosystem will benefit greatly from the influence of Decentralized Autonomous Organizations (DAOs). They make it simple for communities to participate in Web3 or the blockchain, which are both a major part of the metaverse.

DAOs are another way for investors to access NFTs and other metaverses. These organizations can also help with wealth management in the metaverse.

Serge Kassardijan is the CEO of Stay Tuned software. He is a huge admirer of DAOs. According to him, “When you look at DAOs buying and selling NFTs. Both like the speed with which things can move along the chain, and the voting structure and decision-making.

Keeping up Arts DAO

Bhurtun Zahedi and Danosch Zhedi founded Arts DAO. Bhurtun, a former corporate/M&A attorney, has dedicated his life to developing crypto, Web3, and digital content expertise.

Zahedi is an entrepreneur and serial entrepreneur who founded many companies in the crypto space. They co-host Crypto Sheikhs, the most popular podcast on crypto and NFT in the UAE.

Arts DAO is a community DAO that hosts the largest Web3 community in the Middle East. With the launch of the Ethernal Gates NFT collection, the founders intend to make it a collectors DAO.

Kristel Bechara, an award-winning artist, created the collection of 2,000 NFTs.

These NFTs will give holders access to Arts DAO social events and an allocation in DAO. Arts DAO will collect NFTs for their benefit by investing in a portfolio of blue-chip NFTs and seed Web3 founders as well as investing in other DAOs/NFTs. The ultimate goal is to increase the total value of the Treasury and provide a healthy return for its members.