7 Metaverse Tokens You Should (Probably) Know About
Before we get into this topic, this is not an endorsement of these coins, make sure you do proper research before investing at your own risk.
Ready, Player One? The metaverse is coming.
The “metaverse” might be a new term for many, but it has actually been around for decades. The metaverse is the zenith of all science fiction fantasies that were played out in films such as ‘Ready Player One’ and ‘Tron.’
It’s therefore not a surprise that companies such as Facebook are investing heavily in the metaverse. But, what exactly is the metaverse, and what tokens should you know about if you are looking into investing in it?
Read on to learn more about the metaverse and what investment opportunities exist in the crypto markets that provide you with exposure to the growth of the metaverse.
What is the Metaverse?
Before we take a look at the metaverse investment options you can consider, let’s first take a look at what the metaverse is.
The metaverse is a convergence of both our physical and digital lives — a new phase of the Internet that will see the coming together of augmented reality (AR), extended reality (XR), and virtual reality (VR) with our physical world.
The world as we know it today will change greatly with the arrival of the metaverse. The metaverse will provide an alternative digital universe where human beings will not only be able to live and work in, but also play.
So, why should you care about the metaverse?
As an investor, why should you invest in it? According to Bloomberg, the metaverse’s market size is expected to grow to $800 billion dollars by the year 2024. This signifies how lucrative the metaverse could become in the coming years.
But, what metaverse investments can you make? How can you get started investing in the metaverse? What tokens should you consider investing in?
Metaverse Tokens You Could Invest In
While there are various ways that you can invest in the metaverse and become a part of the action, in this guide, we will take a look at blockchain-based digital tokens that give you exposure to the success of the metaverse.
Metaverse platforms will be most likely powered by blockchain technology, enabling people to own, build, and trade digital assets using non-fungible tokens (NFTs) and cryptocurrencies, such as bitcoin and ether.
NFTs have contributed to the widespread attention that the metaverse has been receiving these past few months. So, what metaverse tokens should you know about?
Facebook Tokenized Stock
Mark Zuckerberg is pushing for his company, Facebook, to become a metaverse company. It’s not surprising, therefore, that Facebook has been investing heavily in the metaverse. So far, the tech giant has invested $50 million into its metaverse projects dubbed ‘XR Programs and Research Fund’.
With all the money that Facebook is investing in the metaverse, investing in Facebook Tokenized Stock could be quite lucrative in a few years’ time.
Facebook Tokenized Stock (FB) are tokenized derivatives that represent traditional securities. In simpler terms, they are a tokenized version of shares, typically backed 1:1 by the underlying stock.
With the Facebook tokenized stock, you can opt to buy a fraction of it instead of the whole stock, it has greater liquidity compared to real stocks depending on where you live, and they can be traded 24/7, unlike actual Facebook stock.
Facebook Tokenized Stocks are available on FTX and Bittrex.
Another metaverse token you should know about is MANA, Decentraland’s token.
Decentraland is a blockchain-based virtual reality platform where users get to buy, sell, and develop land, all while playing games, creating content, and interacting with each other.
Decentraland is the biggest virtual universe in the NFT space and is represented as a non-fungible ERC-71 token known as LAND. Each parcel of LAND on Decentraland is unique and owners can choose what they get to do with their portion of land.
Users can purchase LAND on the platform using MANA. Besides being used to purchase LAND, MANA is the main token used in Decentraland. As a native utility token, it’s used to pay for goods and services. It’s also built on Ethereum and can be bought and sold for other cryptocurrencies or for fiat currency.
MANA’s total supply is fixed at 2.6 billion MANA. That means that there will never be more than 2.6 billion MANA at any given time.
Axie Infinity (AXS)
Axie Infinity is an NFT-based online video game that uses the Ethereum-based digital tokens AXS and SLP. In the play-to-earn game, players breed, raise, and battle their digital pets known as Axies. The Axie Infinity game uses the governance token AXS.
Token holders are able to vote and shape the direction of the game world. This is different from traditional games, where the game developers make all the decisions. AXS owners are not only able to stake their tokens and earn more, but they are also able to vote for different governance proposals.
The Axie universe also uses the Smooth Love Potion (SLP) token. The SLP token is primarily used for breeding purposes. Players can earn the SLP token by winning adventures and battles in the game. The main difference between the SLP and AXS token is that it’s not a governance token. Hence, it’s not used to vote. The AXS token has a total supply of 270 million.
Enjin Coin (ENJ)
Enjin Coin is another metaverse token that you could look into. It’s an Ethereum-based token that seeks to make it easy for individuals, brands, and businesses to use NFTs. However, NFTs that are built with Enjin use the ERC-1155 standard, which is different from the commonly used ERC-721 standard.
NFTs minted within the Enjin environment are directly backed by ENJ. ENJ is the native currency used on the platform. Whenever a new NFT is produced on the network, a certain amount of ENJ is minted into the token. These locked funds are what give the newly built tokens real-world value.
Additionally, Enjin recently raised close to $19 million that will be used to build Polkadot-based blockchain for NFTs. ENJ token has a maximum supply of 1 billion tokens.
The Sandbox (SAND)
With a maximum supply of 3 billion, SAND is another token that should be on your metaverse radar. The Sandbox is a virtual world that, like most platforms on this guide, is built on the Ethereum blockchain.
On the platform, players are able to build, monetize, and own their gaming experience. The platform uses the SAND token, which is an ERC-20 utility token that is used for governance, staking, and transfers.
Star Atlas (ATLAS)
Star Atlas is a huge online multiplayer game that occurs in a virtual gaming metaverse. The game is built on Unreal Engine 5 and features real-time, cinema-quality environments.
In the game, there are three major factions that exist and are competing for control and resources. The game is also partly a flight simulation and also allows for role-playing.
The Star Atlas game is currently being built on the Solana blockchain and players will use the ATLAS tokens. ATLAS tokens will be the in-game currency that will be used to purchase assets as well as buy NFTs in the NFT marketplace. The ATLAS token has a maximum supply of 36 billion.
Metaverse Index (MVI)
The Metaverse Index (MVI) token is another interesting example of a metaverse token. Represented by an ERC20 token, the token is built to capture the trend of business, entertainment, and sport migrating to virtual worlds.
With the MVI token, owners are able to get exposure to a wide variety of tokens from various crypto projects that encompass sectors like online gaming, NFTs, and virtual worlds.
Think of the Metaverse Index token as a metaverse ETF but for the crypto markets. The Metaverse Index token has a maximum supply of 39,602 tokens.