Metaverse assets put simply, are blockchain-based assets that are valuable both in the metaverse and in the real world. Anyone can own these assets and use them however they choose, in or outside the metaverse.
So far, the market for these assets has boomed over the past few years. Individuals and corporations alike, have begun to purchase assets like digital land and NFTs. Some of these individuals and corporations have even begun to cash in on profits.
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The global Metaverse ecosystem is expected to jump from $107.1 billion to $758.6 billion by 2026. This growth will be driven by applications offering workforce collaboration, manufacturing, logistics, sales and marketing, and retail
What You Need To Know About Metaverse Assets?
It seems almost everyone is jumping on the metaverse bandwagon.
But what do we mean by ‘the sandbox’, and what do we mean by LAND? you may ask.
The sandbox is an Ethereum-based metaverse gaming platform. This platform allows anyone, including the non-tech inclined to create, use and make profits from their own non-linear gameplay, using NFTs and SAND (the native cryptocurrency of the platform).
A LAND, however, as its name implies is a digital piece of real estate in the metaverse. If you owned a LAND, you could do several amazing things with it.
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For example, a LAND can serve as a source of passive income to its holder. Holders of LAND and other assets can choose to rent out to game creators. The game creators can then use the assets to build digital experiences for other gamers on the metaverse.
If you have been paying attention so far, in the last few lines, we have mentioned three kinds of metaverse assets.
- Real Estate
The above are the major three. There are so many others. Below are some examples of metaverse assets:
Digital Real Estate
Real estate in the metaverse simply refers to plots of land in the metaverse. They are programmable spaces where people can party, socialize, attend conferences and workshops, or even build a house to live in if they so choose.
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In December 2017, a single parcel of land on decentraland’s first LAND auction cost about $20. In 2022, those same parcels of land are worth about $15,000.
Imagine the sheer fortune of someone who had gotten in early with a $2000 investment.
NFTs are similar to other kinds of blockchain-based assets. They are digital representations of real-world assets stored on the blockchain and transferable from one person to another.
NFTs are an integral part of the metaverse. They are sometimes used as gaming rewards, attractions in NFT galleries or gate passes for virtual events held in the metaverse. The non-fungibility of NFTs means that they are unique, and no single NFT is completely equal to another.
Recently, NFT marketplace OpenSea has launched the “OpenRarity” protocol to verify the rarity of NFTs. The newly launched protocol aims to provide a reliable “rarity ranking” to assist investors when purchasing NFTs.
Buying and Storing Metaverse Assets
Buying metaverse assets work in about the same way as buying an NFT or crypto. The ownership of these assets is stored securely on the blockchain and can be transferred from person to person.
To start buying assets and storing them in your portfolio, you need:
- A Crypto Wallet: This is one of the most important aspects of buying and storing metaverse assets. Some metaverse platforms like The Sandbox and Decentraland have native cryptocurrencies ($SAND and $MANA respectively). After getting a wallet, you can proceed to connect to these platforms and purchase your assets.
- A Platform: So far, there are four major metaverse platforms. The Sandbox, Decentraland, Somnium Space, and CryptoVoxels. Currently, The Sandbox owns approximately 62% of the entire market. But you can buy, sell or trade digital real estate, crypto, and NFTs from any of these platforms.
- A Broker or Property Managing Platform: This aspect is optional, as the whole point of blockchain technology is decentralization and the elimination of middlemen. A broker only makes it easier for you to buy and sell assets. It is however important to note that you should only transact with brokers you trust.
Trading Metaverse Assets
The basic idea of trading assets is buying these assets at a certain price and then selling them later at a relatively higher price.
Anyone with a metaverse asset can begin trading whenever they choose. In the digital land market, for example, location plays an important role in the value of a plot of land.
Anyone interested in trading land and making a profit would purchase a plot with a potential for development. This plot should preferably be close to places where people are likely to congregate (like a restaurant or a nightclub).
Such an individual can wait a while and sell when the price is appreciated significantly, thereby making a profit.
You should note that trading NFTs and cryptocurrencies are subject to a lot of risks.
You should only buy crypto, digital land, or NFTs with money you can afford to lose.