Metaverse Wars Vol 1: The Five Worlds

Metaverses – virtual worlds – are perhaps one of the most ambitious categories within the crypto ecosystem since they combine two emerging technologies – virtual reality and crypto. To date, investors have spent nearly $55 million on metaverse digital land and in-game items. NFT data provider Nonfungible reports just under $150 million in total NFT sales volume. Metaverses – digital land and in-game items – as a category account for over a third of all NFT sales activity.

A brief introduction to the Metaverse (skip this section if you’re familiar with Metaverses)

Metaverses are creating virtual universes – some using virtual reality (VR) and some without – that provide true in-game ownership. Metaverses are comprised of pieces of land (often referred to as LAND, voxels, or parcels) that represent a unique location in the metaverse. Any user is allowed to develop and monetize their digital property in whatever manner they see fit whether that means creating a casino or a storefront.

Metaverses leverage several crypto primitives such as smart contracts, in-game currencies, and non-fungible tokens (NFTs) in order to create their virtual worlds. They often enable other in-game items such as clothing for digital avatars, gaming weapons, or other objects. Some metaverses are compatible with virtual reality devices like Oculus although most have standard two-dimensional interfaces.

In Q3, I explored some of the top Metaverses and how speculation currently drives the burgeoning virtual economies. Speculation will continue to spur demand for digital land until real demand for metaverse gaming, activities, or socializing becomes a reality. This piece provides an update on the metaverse competitive landscape as well as a bull case for the potential value of digital worlds and potential metaverse investment strategies.

The Bull Case For Virtual Worlds