Metaverse Boom! How can small investors make money?

With games, e-commerce, education and weddings taking place in Metaverse, the virtual 3D space is touching and dominating every aspect of our lives. Experts say, it's just the beginning and a lot of progress will be seen in the next few years in the virtual world. Metaverse has the potential to become a trillion-dollar opportunity across the world of advertising, digital events, e-commerce and hardware, says a report by crypto giant Grayscale. Does it offer investing opportunities to small and retail investors? Where should you invest to make money while the next internet revolution is taking shape? Here’s all you need to know.

What is Metaverse?

Metaverse can be categorised as a digital parallel universe that can be deployed as a marketplace, exhibition, gaming arena, shopping area, or even a virtual party place. Users of metaverse can join virtual reality through their smartphones, laptops, or even VR headsets.

For the uninitiated, Melbin Thomas, co-founder of Sahicoin, gives an analogy between Metaverse and Facebook. He explains, today we see platforms on Web2 where you just enter a few strings like facebook.com and a whole webpage opens up in which you login with your email address to post, see what others are talking about, etc. Similarly in Web3, you will be able to login with your blockchain wallet address and experience a virtual reality.

“You can go hang out in a pub with friends, sing karaoke with someone across the world and experience the web in a whole new way,” says Thomas. Instead of a profile picture, he adds, here you will have a 3D avatar just like the movie, Ready Player One.

What's even more interesting is that blockchain technology enables you to earn a piece of it. You can even buy land and build a store where you can sell digital goods.

Metaverse will transform the way businesses operate, says Siddharth Menon, COO, WazirX, as well as, their relationship with end-consumers. “Given its boundary-agnostic nature owing to its virtual presence, Metaverse enables endless possibilities, unlike in the physical world, for both businesses, and end consumers,” Menon adds.

Pandemic influenced the Metaverse boom

The pandemic has further transformed user preference for digitally enhanced experiences. As per Menon, we may see sectors such as art, online education, business offices, music, gaming, advertising and sponsored content businesses that will enjoy the first-mover advantage on Metaverse.

Every big corporation plans to build a Metaverse. Meta by Zuckerberg is one such great example, with Microsoft, Walmart, Hyundai, Samsung, and more following the lead.

We are going to see a change in how brands market their products digitally. Adidas, Under Armor, and more brands, says Guardian Link CTO Arjun Reddy, are actively exploring to market their products in the Metaverse. People will receive superior experience with technologies such as augmented reality and virtual reality.

"The virtual world will help in enriching customer experience across categories, ranging from something as small as trying out clothes in a virtual world to complex business dealings,” says Menon of WazirX.

Where to invest?

While the Metaverse offers a whole new dimension for businesses to engage with their customers, says Shivam Thakral, CEO of homegrown cryptocurrency exchange BuyUcoin, there is limited scope for retail investors. But, he adds, retail investors may explore top Metaverse assets like Decentraland, Sandbox and Axie Infinity.

Thomas of Sahicoin goes on to list a few of the top tokens (by market cap) — Decentraland (MANA), Enjin (ENJ) and The Sandbox (SAND). While a lot of exciting developments are happening in this space, it is in a very nascent stage. These tokens are highly volatile and are high risk investments.

“Investors should be cautious in terms of investing and should stay updated with where the whole space is going and how it is shaping up,” says Neeraj Khandelwal, co-founder at CoinDCX.

“Metaverse is a virtual marketplace that needs proper due diligence before letting the money go out of your hands,” says Thakral of BuyUcoin.

As per Menon of WazirX, investors should not invest money which they cannot afford to lose.