The metaverse is the number one thing on most people’s lips. As a trending topic, it has drawn attention and people are keen on investing in one project or the other. With a number of corporate bodies providing seed funding for various projects. Like top firms investing $2 million into Yomi Games’ Oni Squad game. Then again, institutions are not the only ones who can benefit from the trend of virtual world-themed games.
However, it takes more than just more than just purchasing the utility or governance token to successfully invest. Furthermore, this is not like trading where you just buy low and sell high. In this case, you are sticking with the project for a long time. As such, you need to be almost certain that it will succeed.
Features to Consider Before Investing in a Metaverse Project
If you are one of those with the intent of investing in a metaverse project, there are certain things to consider. There are some features that if present, increases the success of a metaverse project. Failure to consider these factors before investing may cause you to lose money in the long run. They include the following:
To appreciate the importance of decentralization in a project, you have to understand the meaning of the word itself. The metaverse is a collection of shared experiences. Going by its definition, the users are not mere players. They are creators and co-owners of this space. This explains why most virtual games are transitioning into Decentralized Autonomous Organizations (DAOs). However, this may not always be the case, especially if it is a budding project. This brings us to the next point.
Stage of Development
The stage of development is crucial to anyone looking at investing in a metaverse game. It determines what you should expect from it in terms of development. Also, the level where the project can help you decide if you invest at all. If it has launched the beta version and the governance token is listed on major exchanges, you may want to rethink your investment. Chances are, the project has peaked. However, there are special cases like Illuvium whose token climbed to as much as $100+ even when the game is yet to be released.
A metaverse is more than a game, but a collection of experiences. For such experiences to be comprehensive, there has to be an ecosystem in place. Like the inclusion of an in-game marketplace and wallet for example. These features allow users to enjoy more seamless gameplay. Furthermore, they also create more use cases for the governance token. As users will have to purchase NFTs and pay transaction fees using the game’s currency.
So far, we have mentioned gameplay experiences quite a few times. What exactly does it mean? This term implies the diverse variety of playing options available to users. From the regular form of gaming to tournaments and interactive sessions. Using Sandbox as an example, it offers loads of experiences. From those involving adventures to the more relaxing ones. All of these are important as they cater for the needs of a wide variety of players. Which in turn causes an increase in the game’s token.
The size of a project’s community is very crucial for its growth. It determines if anyone will hear of the project. There is no denying the importance of marketing in the world of cryptocurrency, NFTs and GameFi. Without a strong community, nobody will know about what the dev team have built. With a large community, word will quickly spread about that metaverse. Which in turn increases its adoption and the value of its offerings (NFT, token or coin) In addition, a poor community means that it is not a good course. After all, people like to become part of something big. However, always consider the stage of development.
In-Game Economy and Reward System
This is very crucial for the long-term success of any metaverse. There are two sides to the divide. The developer(s) has to make enough income to keep things running. However, they have to properly reward users to prevent dissatisfaction. Avoid anyone that tilts to one end way too much. They should be able to strike a balance. Else they will not survive the marathon.
All these features are key for anyone that is considering investing in a metaverse project for a long time. They all play important roles in the survival of that project. Therefore, it is very important you consider them. However, all other features are relative to the level of development. It is the level of project that will determine how much to expect from other aspects. For example, all metaverses start out as centralized projects. They only become decentralized after launching their beta version or stabilizing the in-game economy.
Before proceeding, it is important to state that this is not a piece of investment advice. CryptoGames3D is a platform that offers our community members comprehensive information on the GameFi industry. We are not an investment platform.