What Does It Mean for Investors?
It’s not a surprise when tech companies like Facebook, now known as Meta, make moves in the metaverse. When gaming studios and app developers announce addresses in Decentraland, we love it, but it feels like a natural move. What’s surprising, and therefore interesting, is when more traditional companies jump on board after decades upon decades of doing all or most of their business in the physical world.
Just one example of this is JPMorgan, which recently became the first big bank to open a metaverse lounge. Now, other institutions are following suit – including companies like American Express. While customers have had online and mobile options for both of these companies for years, it’s indicative of a larger trend when big financial institutions and lenders make moves like this.
And JPMorgan and American Express are not alone. According to ZDNet, quoting Accenture’s annual report on technology trends, “98% of executives believe continuous technological advances are becoming more reliable than economic, political, or social trends in informing their organization’s long-term strategy.”
What does that mean for investors? If physical-world corporations are already making the move to Web3, does it make sense to invest in metaverse companies or stick with your portfolio as it is?
We’re not saying that you should dump Nike or JPMorgan. These companies are making key moves to stay relevant and continue to serve their customers and shareholders as we enter a new era of online commerce in the metaverse.
At the same time, savvy investors are seeing the value in adding to their portfolios – by investing in the companies that are shaping the metaverse. Some are purchasing metaverse real estate, but that may not be the right move for every portfolio. There are multiple ways to invest and take advantage of a burgeoning new asset class. Among them, many investors are backing the companies that are creating the metaverse as we speak.
Metaverse real estate has quickly gained value. In fact, it’s accelerated so fast that we recently issued one of the metaverse’s first mortgages. As the metaverse develops, the smart play may be to invest in the companies that are developing metaverse real estate, designing and building events, and pushing user experiences to the next level. What do you think – how will you invest in the metaverse and Web3?