A new reality – investing in the metaverse

Investment experts have noted that the rapidly growing popularity of the metaverse and the significant increase in the number of unit tokens may soon become a new form of investment. In addition, virtual galleries and gaming markets are attracting an increasing number of participants. As a result, global investment companies speculate that the current metaverse market could be worth between USD 3 and 8 trillion.

Experts at the investment platform Freedom24 point out that although this form of investment is progressive and can generate relatively high financial returns, it is important to stay vigilant and to weigh up the potential risks of investing in the metaverse.

“When deciding to invest in this market, it is important to pay attention to the financial situation of the chosen company – its liquidity, debts, annual revenues, and declared growth forecast. Virtual reality markets offer companies with 20% or more investment potential over six months but with a high-risk profile. Therefore, we recommend allocating up to 2% of your portfolio to such investments,” says Maksimas Manturovas, head of investment research at Freedom24.

The investment specialist advises investors to analyse the principles of the metaverse by looking at the participants and their behaviour. The emerging virtual reality economy does not yet have clearly defined rules, so it is important to keep an eye on the situation and trends.

Companies determined to make a serious breakthrough in virtual reality are investing huge sums of money, and this fact allows investment experts to predict good financial returns in the future. One such company is Unity, the IT giant developing game engines. The company recently signed a deal worth €1.6 billion to acquire technology by Weta Digital, which has been used to recreate characters and scenes from famous films such as Avatar, The Lord of the Rings and Game of Thrones. The deal will significantly increase functionality for artists, allowing them to create more complex and realistic objects.

Several factors are driving the development and growth of the virtual domain, including the Covid-19 pandemic and a lack of face-to-face communication, Facebook’s transformation into Meta Platforms and the growing popularity of Non-Fungible Tokens (NFTs).

It is unit tokens that are becoming the main currency of the metaverse. When unit tokens take the form of tangible digital objects, they indicate the originality of an object and at the same time confirm ownership through blockchain technology. Owners of unique digital creations, such as images, GIFs, audio-visual content, in-game merchandise, can turn them into assets and trade them on various games, social networks and other online platforms.