I find cryptocurrencies to be fascinating. I have been following Bitcoin's development closely since 2011, as I saw the big potential of it.
A Depiction of the Metaverse
The metaverse, which allows users to participate in either two- dimensional (2D) or three-dimensional (3D) computer-generated virtual worlds, is growing in popularity and is in the early stage of explosive development. Of course, such a new and emerging technology provides a number of potential investment opportunities to profit as the new technology is adopted and grows rapidly. One way to invest in the emerging metaverse is by buying cryptocurrencies that derive their value from the role they play in providing a platform that people use to participate in the metaverse. There are a number of metaverse cryptocurrencies available to investors, some of which are more promising than others.
A List of the Top Metaverse Cryptocurrencies
The following is a list of what are considered to be some of the top metaverse cryptocurrencies based on market capitalization and the role they play in the metaverse.
- SAND (Sandbox) is a decentralized virtual world owned by people who buy a plot of land in their virtual world known as the sandbox. Creators can host custom games and events in their own plot of land. Sandbox has been compared to the popular Roblox platform due to their similarity in being able to host interesting games. The big difference is sandbox players own their virtual sandbox assets in the form of non-fungible tokens (NFTs), which allows players to earn tokens as they play in a sandbox virtual world.
- MANA (Decentralized) is a virtual reality (VR) world that runs on the Ethereum blockchain in a decentralized manner. A user can purchase land, build token-earning features, and can connect to content and applications built by other landowners.
- AXS (Axie Infinity) is the token used for governance of the Axie Infinity game. Token owners are provided the ability to vote for and influence how the game universe is developed. Many players like this model in which they play a part in decisions that are made by the game developers, as it makes them feel a part of the development team. AXS token owners can stake their tokens to earn AXS tokens. Land can also be purchased and built upon to enhance a player’s experience.
- ENJ (Enjin Coin) is used to buy and sell virtual goods created by Enjin, which is one of the largest gaming community platforms online. The Enjin Coin blockchain is used to keep transaction fees low and to prevent fraud when transferring virtual goods. The Enjin Coin is an ERC20 token that runs on the Ethereum network’s high-speed Raiden Network.
- JEWEL (DeFi Kingdoms) is a token used in a decentralized finance blockchain game called DeFi Kingdoms. JEWEL is used to buy game NFTs that are tied to items that are used by players. The token is also used by holders to vote on proposed changes and developments to the platform.
- Render Token (RNDR) is associated with an image rendering program called OctaneRender®. The program uses the graphics card in a user’s computer to render photo-realistic images at a high rate of speed. It is used by a wide variety of professionals in the image creation industry.
- Illuvium (ILV) is a decentralized gaming studio that utilizes the ILV cryptocurrency. The studio creates high production-value NFTs that can be used to play their Illuvium game and earn ILV. The ILV token provides owners the right ability to govern the future development of the game and to purchase items used in the game.
The Case for Investing in Metaverse Cryptocurrencies
A strong case can be made for investing in metaverse cryptocurrencies. The metaverse is relatively new, and while metaverse cryptocurrencies have rallied from their very low initial prices, there are likely many more years of explosive growth in this space ahead that could send metaverse cryptocurrencies soaring much higher. Some of the best investments in history have been made when a new technology has emerged that is in the initial stages of being adopted. Of course, not all metaverse cryptocurrencies will perform well in the long run, and there are some real risks associated with this space, as outlined in the following section.
The Risks Associated With Investing in Metaverse Cryptocurrencies
There are some obvious and real risks associated with investing in metaverse cryptocurrencies. The following are some of the risks to consider.
- It is a wide-open market. There is nothing preventing additional companies from creating their own metaverse spaces and linking their own cryptocurrencies to their proprietary spaces. Eventually, some of the big tech companies are likely to jump in and dominate this space. Facebook changed its parent company name to Meta for this very purpose. If big companies dominate this space, it will likely cause many of the small early companies in the space to fade and their cryptocurrencies to lose value.
- The metaverse might never gain the consumer market appeal that proponents envision it gaining. Part of the reason metaverse cryptocurrencies have been rallying is there are tremendous expectations that the metaverse is going to become wildly popular and generate a lot of activity and revenue in the future. There is no guarantee this will actually happen. People might decide they don’t want to spend time in an alternative computer-generated reality like a metaverse.
- Government regulations could negatively impact metaverse cryptocurrency prices. While this is less of a risk than the first two risks mentioned above, it is a real risk that has already impacted some cryptocurrencies. Nobody knows what regulations governments might come up with in the future that could limit the growth or value of metaverse cryptocurrencies.
Metaverse Cryptocurrencies Poll
Top 5 God Tier Metaverse Coins To Invest In NOW
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2022 John Coviello