How to Invest in the Metaverse: 7 Best Tokens to Consider Purchasing

What Is the Metaverse?

The metaverse refers to a virtual environment separate from the physical world, where users can participate in a wide range of activities and experiences. By controlling avatars, users can interact, communicate, and enjoy gaming, shopping, and other activities within these spaces and services.

Integrating technologies such as VR (Virtual Reality) and AR (Augmented Reality), the metaverse delivers immersive experiences that go beyond entertainment and gaming. Its applications are expected to expand into education, business, art, healthcare, and more. While still in the early stages, the industry is forecast to grow into a colossal market valued at approximately ¥100 trillion.

The term "metaverse" was first introduced in Neal Stephenson's dystopian cyberpunk novel "Snow Crash," published in 1992. In this science fiction story, the metaverse is described as a 3D virtual reality data space accessed through VR headsets and reality goggles. Soon after, projects like Second Life became leading metaverse platforms, attracting users to virtual worlds.

The metaverse is expected to fundamentally transform business and society. Concrete examples include:

• Example 1: Entertainment Industry — Virtual concerts and gaming
• Example 2: Education Industry — Learning experiences on virtual campuses
• Example 3: Healthcare Industry — Surgical support and rehabilitation via virtual reality
• Example 4: Real Estate Industry — Property tours and purchases in virtual spaces
• Example 5: Financial Industry — Trading and investing within virtual environments

Metaverse Investment Strategies for Beginners

Anyone can invest in the metaverse and generate income from it. Both large corporations and blockchain firms are actively building within this space.

It's important to recognize that metaverse investment is not limited to buying crypto assets. Hundreds of public companies are involved, spanning real estate, video games, entertainment, and other sectors.

To address how to invest in the metaverse, here are several practical options:

• Purchasing land within the metaverse
• Buying prefab properties in the metaverse
• Acquiring metaverse crypto assets
• Investing in metaverse ETFs
• Purchasing metaverse stocks
• Building and flipping NFTs

How to Invest in the Metaverse: Top 7 Related Stocks

Meta Platforms Inc.

In August 2022, Facebook rebranded as Meta. Mark Zuckerberg characterized the metaverse concept as the next stage of digital communication and social interaction.

Meta Platforms is developing products that enable people to experience and connect in real life through mobile devices, VR headsets, and home hardware.

The platform divides into two main segments. The first is social-focused brands, known as FoA (Family of Apps), which includes Facebook, Instagram, Messenger, and WhatsApp. The second segment is Facebook Reality Labs (FRL), a research division focused on augmented reality and virtual reality technologies for hardware, software, and content.

Meta has already committed $50 million to building a "responsible" metaverse.

Microsoft Corporation

Microsoft is a major tech company investing in the metaverse. The company has launched several products to provide users with enhanced virtual experiences. Well known for consumer software and workflow solutions, Microsoft now invests in metaverse projects for both enterprises and individuals.

One notable product is HoloLens, Microsoft's first-generation AR headset. It allows users to interact with 3D holographic objects as if they were part of their physical environment.

The original HoloLens debuted in 2015, with an improved version released in 2019. It is used across industries including healthcare, entertainment, and education.

Microsoft's latest metaverse offering is "Mesh for Microsoft Teams," which was announced at events to enable virtual meetings using avatars and immersive spaces powered by Mesh.

Roblox Corporation

Roblox is a gaming platform popular with young children—nearly 50% of its users are under 13, and total engagement reaches about 11.8 billion hours. Roblox presents a strong opportunity for metaverse investment.

Roblox is building momentum as a major metaverse platform. Children worldwide interact with Roblox from home, and the company aims to retain these users as they grow.

In addition to gaming, Roblox enables developers to create and upload games for users to play. This functionality makes Roblox a unique 3D platform for gameplay and social interaction.

NVIDIA

NVIDIA manufactures graphics processing units (GPUs) used in gaming consoles and PCs.

NVIDIA has shown increasing interest in virtual worlds, developing metaverse products for creating 3D models of the physical world.

In October 2020, NVIDIA launched a beta version of Omniverse, a platform connecting shared metaverse virtual spaces. Omniverse lets users design and simulate digital 3D projects and is hosted on Pixar's Universal Scene and NVIDIA RTX technology.

The Boeing Company

Boeing is globally recognized for manufacturing, designing, selling, and leasing aircraft, rockets, rotorcraft, satellites, communications equipment, and missiles.

Boeing is using the metaverse to revamp its design and manufacturing processes. In the next two years, mechanics will use $3,500 Microsoft HoloLens headsets, optimize robot reliance, and build integrated digital information networks. The company plans to invest about $1.5 billion in this area over the next decade.

Unity Software Inc.

Unity is a cross-platform game engine developed by Unity Technologies. It's now web-accessible and compatible with PCs, smartphones, tablets, and nearly all browsers. Unity recently expanded support for VR platforms.

Unity Software is establishing a strong metaverse presence through its game engine and acquisition of Weta Digital. The company prioritizes metaverse development and has formed partnerships beyond gaming.

In December 2021, Unity partnered with eBay to offer vendors the ability to showcase products in realistic 360-degree 3D images. Hyundai Motor Company also teamed with Unity to produce digital twins—virtual 3D models of real objects. Hyundai uses these virtual spaces to improve productivity and drive innovation in manufacturing.

Autodesk, Inc.

Autodesk is a leading software company delivering design tools for architecture, engineering, construction, product design, manufacturing, media, and entertainment.

Autodesk provides modeling and rendering solutions and manufactures a broad range of applications, including AutoCAD, AutoCAD LT, 3ds Max, Inventor, AutoCAD Civil 3D, Maya, Revit, and computer-aided manufacturing solutions.

Additional Ways to Invest in the Metaverse

Beyond buying metaverse-related stocks, there are more ways to invest in the metaverse.

• Investing in metaverse cryptocurrencies
• Direct investment in the metaverse

Investing in Metaverse Cryptocurrencies

Many projects are targeting the metaverse as the next frontier in technology. Popular metaverse crypto assets include AXS (Axie Infinity: MANA), Decentraland, SAND (The Sandbox: BLOK), Bloktopia, and others. Purchasing crypto assets is among the simplest ways to invest in the metaverse.

Currently, the most notable metaverse projects include:

• Decentraland
• The Sandbox
• Axie Infinity
• Roblox
• Solare
• Illuvium
• MetaHero
• Bloktopia
• Star Atlas
• Upland

Investing in these metaverse cryptocurrencies is an effective strategy.

Direct Investment in the Metaverse

Just as you can acquire physical land in real life, you can buy and even "live" on land in the metaverse. These are digital spaces, purchasable with crypto or, at times, fiat currency.

Metaverse land offers optimized 3D experiences for users, and since these assets are issued as NFTs, ownership is easily asserted. There are several advantages to buying metaverse land—you become a virtual landowner and can sell property through mainstream trading platforms or metaverse platforms.

Most metaverse land is bought using cryptocurrencies. Ethereum, SAND, and MANA (the currency of Decentraland) are the most popular choices. Acquiring these assets is the first step to owning land in the metaverse.

The only requirement is a crypto trading platform, making the purchase process straightforward. However, the value of virtual land depends on overall metaverse adoption, so it's riskier than buying ordinary crypto assets.

Why the Metaverse Market Is Expected to Grow

The metaverse market is expected to expand significantly for three reasons:

• Technological advances enabling stress-free metaverse spaces
• The rise of internet-native Generation Z
• Increasing focus on the metaverse economy by large corporations

Technological Advances Enabling Stress-Free Metaverse Spaces

For widespread adoption, the metaverse must deliver virtual spaces that users enjoy without stress. Currently, issues such as VR sickness, hardware limitations, and security concerns remain.

However, metaverse technologies are evolving rapidly. Next-generation communications like 5G and 6G, as well as AI, are making stress-free metaverse spaces possible. As development continues, participation will grow and the market will expand.

The Rise of Internet-Native Generation Z

Generation Z (born after 1997), known as "internet natives," is becoming central to society. This generation grew up with digital technology and is highly familiar with the metaverse. Surveys consistently show Generation Z has the highest interest in participating in the metaverse.

Games like Fortnite and Roblox are establishing economic zones among younger users. Generation Z views the metaverse as a venue for community building and creativity, not just gaming. As they become the core of society, the boundaries between real life and the metaverse will blur, increasing demand and participation.

Increasing Focus on the Metaverse Economy by Large Corporations

An important driver for the metaverse market is the rising number of large corporations focusing on the "metaverse economy," centered on cryptocurrencies and NFTs.

Facebook changed its name to "Meta" and committed to metaverse development, while Microsoft launched "Mesh," a platform for meetings and interaction within metaverse spaces.

Cryptocurrencies and NFTs are digital assets built on blockchain technology and are closely linked to metaverse activities. A thriving crypto and NFT market is likely to positively impact the metaverse sector.

The entry of large companies into the metaverse economy, and trends in crypto and NFT markets, may further drive metaverse market growth.

Metaverse ETFs as an Investment Option

Metaverse ETFs offer trend-driven investment opportunities across multiple stocks, managed by experienced fund professionals.

ETFs are similar to traditional mutual funds, as both pool stocks into single assets with considerable return potential. The key difference is that seasoned managers trade ETFs to maximize and maintain market value.

Available metaverse ETFs include Roundhill Ball Metaverse ETF, The Simplify Volt Fintech Disruption ETF, ProShares Metaverse ETF, Subversive Metaverse ETF, and Evolve Metaverse ETF.

Fortnite: A Leading Candidate for the Next Metaverse Era

Fortnite is considered one of the most promising metaverse platforms. Epic Games' platform boasts more than 400 million users worldwide. Reasons for Fortnite's reputation as a next-generation metaverse include:

• Massive user base and strong appeal among Generation Z
• Scalable and creative virtual spaces
• Support for blockchain technology

The platform has also launched a "creator revenue sharing program" and opened world development, enabling creators to monetize in-game content. These features strengthen Fortnite’s role as a mainstream next-generation metaverse platform.

FAQ

What Is the Metaverse? Please Provide a Definition and Key Features.

The metaverse is a 3D virtual environment built on the internet. Users navigate as avatars, communicate, shop, and participate in events. Its use spans gaming, business meetings, and more.

What Are the Main Methods for Investing in the Metaverse?

Main strategies include purchasing virtual land or NFT assets, investing in metaverse-related company stocks, acquiring blockchain project tokens, investing in VR technology firms, and obtaining in-game items.

Which Metaverse-Related Company Stocks Are Most Promising?

Meta, Microsoft, NVIDIA, and Unity Software are notable for their VR/AR technologies and metaverse platform development. Companies specializing in graphics processing and AI are also expected to have strong growth prospects.

Is It Safe to Invest in Metaverse-Related Cryptocurrency Tokens? What Are the Risks?

Metaverse tokens have high growth potential but remain highly volatile due to the market's early stage. Careful project selection and portfolio diversification are critical. The sector is expected to offer strong future growth opportunities.

How Should Beginners Approach Metaverse Investment?

Beginners should start by learning the basics of NFTs and virtual real estate. Next, consider metaverse ETFs or stock investments, and balance risks with other assets.

How Does Metaverse Investment Differ from Other Tech Investments?

Metaverse investment focuses on a virtual economy integrating multiple emerging technologies like VR, AR, and AI, promoting the convergence of physical and digital worlds. This distinguishes it from investments centered around single technologies, offering innovative business models and new opportunities for value exchange.

What Are the Growth Prospects and Investment Opportunities in the Metaverse Market for 2024?

The metaverse market is expanding rapidly in 2024 and is projected to exceed ¥2 trillion by 2027. Advances in blockchain technology and the maturation of NFT markets are creating more investment opportunities, with technology firms and virtual asset stocks attracting significant interest.