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Lesson 12: Metaverse Crypto Coins

Lesson 12: Metaverse Crypto Coins

To make any purchases in the metaverse, you’re likely to use cryptocurrency. Metaverse crypto coins or tokens that can be bought, sold, traded, like any other cryptocurrency.

Metaverse crypto coins are creating the virtual economy of the virtual world of 3D realities. The concept of a digital world is now taking shape with the help of blockchain technology, and there are already many metaverses that can be used. To explore these new horizons, users can own in-game assets, play-to-earn crypto, and trade items. And all of this is possible with the help of metaverse cryptocurrency coins.

What is Metaverse Crypto Coin?

The metaverse is a collection of digital spaces that include immersive 3D experiences. They are interconnected, and users can move easily between them. The fascination of metaverses is that users can do things that they cannot do in the real world.

Metaverse crypto coins are the cryptocurrencies used in metaverses to perform specific actions or to trade digital assets on the marketplace.

Users may use these metaverse coins to pay for unique items in the 3D universe, including avatar clothing and real estate. These assets are also known as NFTs (non-fungible tokens). Metaverse coins can also sell goods and services, as well as create products. Please note that each coin is different and may have different use cases. For instance, some coins may only be used within their metaverses, while others can be used for cryptocurrency trading on exchanges. In most cases, these metaverse coins may grant holders access to VIP features or allow them to compete against other players.

To convert these metaverse coins to fiat, owners must use a cryptocurrency exchange. The most popular types of metaverse crypto coins are found in:

  • Play-to-earn (P2E) games. Players are rewarded for playing and receive cryptocurrency with real-world value.
  • Metaverse platforms. These are the foundations of 3D virtual realities and are built on the blockchain. They have their native coin. The most popular ones are Ethereum, Solana, Polygon, and Cardano.
  • 3D virtual worlds. There are only a handful of available 3D metaverses available, and they offer complex virtual experiences. They can also host P2E games and almost any virtual event. The most popular metaverses are Decentraland and The Sandbox.

Are Metaverse Coins a Good Investment?

In 2021, the CEO of Facebook, Mark Zuckerberg, introduced the future of Facebook as a metaverse virtual world. This would allow users to escape into a virtual realm where technology would free them of physical constraints. Since then, blockchain metaverses have been on the rise, with more users and companies getting more involved.

The metaverse is a virtual space that can be used for anything and everything, and each user can own digital items or real estate, like the way they own assets in real life. And that’s how the metaverse economy was born.

Since the Facebook announcement and the rebranding of the company to “Meta”, all metaverses have welcomed new investors. The good news is that because metaverse projects are new, coin prices are quite low. Most metaverse coins are around $1 or even less, and this can represent an investment opportunity for anyone. At the same time, it doesn't mean that all projects are worthwhile.

Whether or not you should invest in the metaverse depends heavily on your risk tolerance and understanding of this new technology.

Investors seek metaverse coins that have shown potential through performance, utility, or powerful financial backing -- or all three. Let’s t’s look at the most popular metaverse cryptocurrency coins.

What are the most popular Metaverse crypto coins?

The good news is that because metaverse projects are fairly new, coin prices are quite low — well under $1 in many cases, and less than 1 cent in some. This opens the cryptocurrency investment opportunity for nearly anyone. At the same time, it doesn’t mean all projects are worth your money.

Decentraland (MANA)

  • Market cap: $2,002,100,489
  • Circulating supply: 1.85 billion MANA
  • All-Time High: $5.90 (November 25th, 2021)

Decentraland is one of the most popular crypto metaverse projects. The metaverse supports NFTs, which can be all sorts of in-game digital assets, such as real estate or avatar accessories. The NFTs are traded for MANA, which is the metaverse crypto coin of Decentraland.

With the rise of the NFT marketplace in 2021, MANA was also one of the metaverse coins to rise in value. NFT owners began using the platform to highlight their NFTs. But Decentraland isn’t just a virtual place for NFTs. Its main feature is the ability to buy virtual land or create digital assets. Many real-world companies have started to purchase pieces of land in Decentraland to build a virtual office within the metaverse. Some of the most famous brands that exist in the Dencetraland metaverse are Sotheby's, a broker of luxury goods, Samsung, Nike, Coca-Cola, Adidas, and Atari.

Decentraland’s native coin, MANA, is a well-established metaverse cryptocurrency, that is easily accessible and highly appealing to novice users. Decentraland's metaverse offers exciting interactive opportunities, including concerts and festivals that rival those in the real world. Decentraland is expanding and has an active development team that provides many options and opportunities.

Decentraland was created in 2017, but it became mainstream in 2021 when NFTs started to trade massively. MANA like other cryptocurrencies fallen significantly since the start of the year but is up slightly when compared to last year. Although MANA's performance has been under pressure during the 2022 bear market, Decentraland (MANA) is still one of the most popular metaverse coins in 2022.

The Sandbox (SAND)

  • Market cap: $1,719,005,896
  • Circulating supply: 1.28 billion SAND
  • All-time high: $8.44 (November 25th, 2021)

The Sandbox is another top-performing crypto metaverse project. The Sandbox is basically a game, and it’s achieving the vision of the metaverse by incorporating a VR component. Atari, a gaming company, is backing it, which could be helpful in the current crypto crash.

Sandbox is a direct competitor for Decentraland and released its first game in 2012, but it’s not focusing on building a 3D metaverse, which allows users to build, trade, and earn in-game digital assets. It also allows users to buy and trade parcels of land. All these digital assets present in Sandbox are NFTs and can be traded using the metaverse coin of the platform, SAND.

SAND, the native token of the platform, was consistently on the rise in 2021, finally crossing the $1 mark during the last quarter of 2021, continuing its upward trend to $8.40 in November 2021. However, it has fallen like most other cryptos during 2022.

Star Atlas (ATLAS)

  • Market cap: $16,967,395
  • Circulating supply: 2.16 billion ATLAS
  • All-time high: $0.2773 (September 4th, 2021)

Star Atlas is a metaverse project built as a game on the Solana blockchain. Star Atlas is a game that depicts the future. Players can take over land and gather resources in an extremely futuristic setting. In a partnership that is expected to increase the game's player base, the metaverse recently partnered up with iBuyPower. This PC manufacturer will serve as Star Atlas' hardware provider.

Star Atlas' development team believes in promoting the freedom of time spent in the virtual world. They also emphasize the potential for value generation to transcend the virtual world to the real world and to establish a sovereign metaverse feedback loop. All digital assets that are owned belong to the holder and can be stored in a wallet. Earned crypto assets can also be converted into other exchange media at the touch of a button.

ATLAS is the in-game currency for Star Atlas, and it is used for managing all operating costs and revenue. The metaverse crypto coin of Star Atlas (ATLAS) is required to pay Land Value Tax, ship repair, refueling, consumables, replacement of worn-out equipment, and purchasing consumables. You earn a metaverse token (ATLAS) by playing the game. It is a reward-based game that rewards you for playing and accomplishing things.

Enjin Coin (ENJ)

  • Market cap: $618,400,375
  • Circulating supply: 896.39 million ENJ
  • All-time high: $4.85 (November 25th, 2021)

Enjin was founded in 2017 and offers a globalized database that allows users to store and manage digital gaming products in a secure and safe manner.

Enjin software allows developers to create and manage virtual goods using the Ethereum blockchain. The platform also makes it easy to sell and buy NFTs using a mobile app that supports QR codes.

Enjin is a blockchain-based technology that allows for the management of in-game objects across multiple properties. This will help to reduce fraud and high fees that have plagued the transfer and collection of virtual goods and collectibles. Enjin’s SDK (software development kit) allows users to create digital assets on Ethereum and then integrate them into apps and games. Each asset can be customized to fit any platform. The items are also recorded in smart contracts, which gives them the benefits of cryptocurrency, including speed, cost, and security.

Enjin coin (ENJ) is the central component of managing digital assets on its platform. Enjin's cryptocurrency is used to assign a value to each item in-game created on Enjin.

Enjin offers users a unique marketplace experience. It can help them expand their markets with NFTs or QR codes and connect with others through websites, apps, and games. It is powered by Ethereum and offers a decentralized experience.

Ethereum (ETH)

  • Market cap: $209,428,742,590
  • Circulating supply: 121.86 million ETH
  • All-time high: $4,891.70 (November 16th, 2021)

Ethereum is the blockchain on which many metaverse projects are built. Ethereum was the first blockchain that integrated smart contracts, which are used by all NFTs as well as decentralized apps. The majority of in-game metaverse items can be built on Ethereum, and they are usually valued in Ether (ETH), the native currency of Ethereum.

Ethereum is the go-to platform for building metaverses and other crypto-based applications and has the largest community of all these projects. Ethereum allows anyone to use the network to deploy permanent and immutable applications onto it. Users can also create and exchange NFTs. These tokens represent ownership of an associated asset. Many other cryptocurrencies also use the ERC-20 token standard that is built on top of Ethereum, including many of the native coins of 3D metaverses.

Ethereum is the second-largest cryptocurrency by market capitalization. Decentralized exchanges allow for ETH pairings with even the most valuable metaverse coins and metaverse crypto coins.

Axie Infinity (AXS)

  • Market cap: $1,563,058,124
  • Circulating supply: 83.2 million AXS
  • All-time high: $165.37 (November 6th, 2021)

Axie Infinity is an online NFT (non-fungible token) based game created by Sky Mavis in Vietnam. It is known for its in-game economy, which is built on the Ethereum blockchain. Axie Infinity players can collect and mint NFTs, which are digital pets known as Axies.

Axie Infinity is home to more than 250.000 daily users. AXS tokens are the players' stake in the operation and ownership of the game. Players can create kingdoms, hunt for rare resources, and build treasure troves. The metaverse blockchain rewards the most engaged players with rewards.

Players must compete to win Axies, NFTs (non-fungible tokens) that can be used for trading outside the game. The value of an Axie will depend on its rarity, and some of these Axies NFTs have been sold in the past for up to $100,000. The most expensive Axie ever sold was valued at 300 ETH, in 2021.

AXS, along with many other metaverse coins, is based upon the Ethereum metaverse blockchain. This means that gas fees may be high. You can still be confident in the security and safety of the platform. You can also trade AXS for Ether or other cryptos.

You can earn AXS by completing quests or other activities on the platform, but there is a limit on how much you can earn per day. Some of these activities are time-intensive, and it may pose some difficulties for the average user to complete them. Many players will find it difficult to start the game. To participate, they must have at least three Axies.

Alien Worlds (TLM)

  • Market cap: $83,476,996
  • Circulating supply: 2.61 billion TLM
  • All-time high: $7.19 (April 11th, 2021)

Alien Worlds is a DeFi metaverse that uses blockchain technology to allow players to compete for scarce resources within the community. The Alien world features decentralized elements. Players can take the game to the next level by purchasing Trillium (TLM) and gaining voting rights in the Planet's DAO.

All players must have a WAX Cloud Wallet. After logging in to Alien Worlds, they can start mining, which is incentivized by TLM tokens. These tokens allow players to stake their governance on one or more Alien World Planets and even to be a candidate for governing a planet.

You can also earn NFTs, which can be used to fight with other players or mine TLM. TLM can be used not only to manage the Alien Worlds metaverse but also to purchase and upgrade specific items or to participate in quests or other in-game activities. TLM is used to incentivize the most active users. TLM can also be transferred between the Ethereum, WAX, and BSC blockchains.

The game is rapidly growing and attracts players due to its low upfront cost and ability to earn cryptocurrency via gameplay.

Gala Games (GALA)

  • Market cap: $426,076,149
  • Circulating supply: 6.98 billion GALA
  • All-time high: $0.8367 (November 26th, 2021)

Gala Games is a blockchain game ecosystem. It gives gamers more control over their gaming experience. NFTs can be owned by players to facilitate different gaming functions. NFTs can also be traded with other users. Gala Games offers a range of NFTs such as the CraneBot that can be used in specific games or other games within the same ecosystem.

Gala Games, like other metaverse games, has its own native token, the GALA. GALA is encrypted cryptographically and serves as the primary means of exchange between players. GALA rewards top players and awards them with the token. GALA allows players to participate in the governance of Gala Games. This gives them almost unrivaled control over new game development and content. Gala Games is known for its free games. You can create an account to play without any fees, charges, or subscriptions. Gala Games runs on Ethereum, so users may be charged high gas fees if they try to send coins or make transactions.

While Gala Games is still a new project, the development team has set clear goals and created a roadmap to help them achieve those goals. The game platform is currently working on several new games that will launch in the near future. GALA tokens are used to incentivize players and nodes.

Gala recently announced a partnership with Epic Games in order to launch the Wild West Battle royal NFT Game Grit at their Epic Games store, Steam, and other retailers such as Steam. It is a basic battle royale mode that allows players to fight against each other in a team, duo, or solo until one of the teams or men survives. It is interesting because there will be a perk system to help players improve their skills. These cards can be traded using NFTs and are built on the blockchain.

Flow Blockchain (FLOW)

  • Market cap: $2,717,597,831
  • Circulating supply: 1.04 billion FLOW
  • All-time high: $46.16 (April 5th, 2021)

Flow is a developer-friendly network of blockchains, and it is designed to support many apps and games. Its multi-node architecture is multi-role and scales without sharding. It specializes in specific node functions, increasing speed, and throughput. Flow protects users' data and offers digital assets that can trade on the open market.

The Flow blockchain offers some unique features for developers, such as its programming language (Cadence). Developers have access to a variety of tools and support, while consumers have easy-to-use payment options. Flow employs a proof-of-stake (PoS), consensus mechanism that splits validation among multiple types of nodes. Validating transactions requires that each type of node be involved. Flow is distinguished by its multi-role architecture, which allows it to scale without sharding.

There might not be many opportunities to engage initially, as Flow was designed to support NFT collectibles and crypto games. You can buy NFTs via the app marketplace or trade digital assets via NBA Top Shot. Developers have easy access to a variety of tools that allow them to create DApps and simply experiment.

FLOW is Flow's native currency. The token is used as a payment method, and validators are incentivized by FLOW. FLOW is the currency that fuels the network and sustains the ecosystem of applications that are built on top of it.

Bloktopia (BLOK)

  • Market cap: $42,118,355
  • Circulating supply: 8.34 billion FLOW
  • All-time high: $0.1777 (October 31st, 2021)

Bloktopia was developed as a decentralized metaverse project and is built on the Polygon blockchain. Bloktopia is a decentralized virtual reality (VR) skyscraper with 21 levels.

The skyscraper, built on virtual land, serves as a central hub where users can access all kinds of immersive content and crypto information. Bloktopia's "Bloktopians", or members of Bloktopia, can either learn the basics or dive into the technical details of cryptocurrency. You can make money by selling virtual real estate, playing online games, creating networks and many other activities. Through a special NFT mechanism, sponsors and advertisers can also monetize Bloktopia users.

Bloktopians have the ability to interact with various elements on Bloktopia's platform. This makes Bloktopia an engaging experience. Bloktopia's four core principles – learning, earning and playing, as well as creating, allow users to engage in an immersive experience.

ApeCoin (APE)

  • Market cap: $2,218,941,036
  • Circulating supply: 306.8 million FLOW
  • All-time high: $39.40 (March 17th, 2022)

ApeCoin is an ERC-20 cryptocurrency that was launched in 2022 by Yuga Labs. It is native to both the Bored ApeY Club (BAYC), and the Otherside metaverse game. Yuga Labs raised approximately $320 million through a virtual land sale. This allowed APE token holders the opportunity to purchase parcels called Otherdeed. Otherdeed is the key to claiming land on Otherside.

Otherside will be a metaverse game with a fully-fledged MMORPG virtual world. It will be integrated into the BAYC ecosystem. This will likely include ApeCoin. ApeCoin token can be used as both a governance and utility token. Holders may participate in the governance of DAO or gain access to exclusive mints, games events, merchandise, and services.

Holders bought 55,000 lots or "Otherdeeds", and 45,000 went out to others, including Yuga Labs NFT owners and founders. Because of the high volume of transactions, the sale caused huge gas fees on the Ethereum network. This issue with the Otherdeeds' minting process led to a significant drop in ApeCoin prices and a decrease in demand for the coin. APE's value dropped from $26 when the sale was announced to $3.49 by June. Yuga Labs' demo in the Otherside metaverse, to which it invited 4,300 Otherdeed owners, caused a price spike that could be a turning point.

APE is also being removed from the circulating supply to increase the price. If the project survives, buying APE now at a bargain price could be a good long-term investment. However, if the project fails, ApeCoin would be worthless.

Where to trade Metaverse crypto coins?

Before trading Metaverse crypto coins, the first thing to do is research and choose the best crypto app for you. You will find many services online to help you buy, sell, and trade cryptocurrency, including crypto exchanges and online brokers.

  • Online brokers: There are a few online brokers that offer ways to buy and sell Metaverse coins, in addition to other assets like stocks, currencies, and ETFs. These trading platforms tend to offer lower trading costs but fewer crypto features.
  • Cryptocurrency exchanges: You'll have many cryptocurrency exchanges to choose from, each with varying offerings of cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.

As you're comparing different platforms, it's wise to consider things like supported cryptocurrencies, security features, fees, storage and withdrawal options, and educational resources.

Using a brokerage may be a suitable variant for higher amounts of money due to several reasons such as security and bigger liquidity. After depositing your collateral, you have various trading possibilities including leverage positions and a variety of assets under the same roof, depending on the services provided by the specific broker. Crypto exchange on the other hand is the simple way to trade metaverse coins by using the order book of the trading pair according to the deposited cryptocurrency or fiat money – this is the way a buyer meets a seller, for which the crypto exchange charges a fee.

Online brokers offer cryptocurrencies in addition to their selection of stocks, ETFs, options, bonds, and mutual funds. Crypto investors can use a diversity of investment vehicles that provide exposure to the crypto market and blockchain technology.

Another big advantage of using online brokers is that investors can trade and speculate on the value of the assets as it moves in both directions. This means that there is a possibility to make a profit even if the metaverse coin prices go down if you had opened a sell position. However, if the price moves up, you lose your investment. This is not the case with cryptocurrency exchanges, which do not offer the option to speculate on the price movement and traders must wait for the price to move in only one direction.

Unlike buying metaverse coins in the hope they increase in value, CFDs (contracts for difference) enable crypto traders to speculate on cryptocurrency prices, either “going long” if they think the price will increase or “going short” if they think the price will decrease.

CFD trading is leveraged, which means you can gain exposure to a large position without having to commit the full cost at the outset.

While leverage enables you to spread your capital further, it is important to keep in mind that your profit or loss will still be calculated on the full size of your position.

When you open an account with CAPEX, you will be able to:

  • Open buy and sell positions. With cryptocurrency CFDs, you can speculate on any price movement (up or down).
  • Trade multiple individual cryptocurrency CFDs at the same time.
  • Diversify your portfolio by trading CFDs on other assets (crypto, stocks, bonds, currencies, ETFs, and commodities).
  • You can start off with a demo account funded with $50,000 virtual cash to allow you to practice risk-free trading before you use any real money.

How to trade Metaverse coins?

If you want to buy and hold Metaverse coins, then you can use a cryptocurrency exchange. However, if you want to speculate on the metaverse coins’ price movements you can use an online broker that offers crypto CFDs.

Here is how to buy metaverse tokens through an exchange or trade CFDs on coins with an online broker:

  • Choose which type of platform you want to use. Your first concern should be to find a reputable online broker that has a wide range of cryptos and other assets, including stocks and ETFs. If you want to withdraw your cryptos to a private wallet and keep it for longer, you should consider using a crypto exchange.
  • Create an account. Regardless of your chosen platform, you need to register and complete the KYC process to verify your identity.
  • Fund your account with fiat money. Before buying and trading any crypto, you need to fund your exchange account with U.S. dollars, Euros, or any supported fiat currency on that platform.
  • Select your cryptocurrencies. It’s time to decide on your first cryptocurrency investment. We strongly recommend that you thoroughly research the project behind the coins you want to add to your portfolio. You can invest in one or more cryptos.
  • Place a buy order for your chosen cryptocurrency. Follow the steps required by the trading platform to submit and complete a buy order for one or more cryptocurrencies.

After your purchase is complete, the information that you need to access your cryptocurrency is held in a digital wallet. That crypto wallet can be hosted either by the cryptocurrency exchange or an independent wallet provider.

When trading crypto, the CFDs (contracts for difference) are stored in your account and are far more liquid. However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are liquidity risks and margins you need to maintain; if you cannot cover reductions in values, your provider may close your position, and you'll have to meet the loss no matter what subsequently happens to the underlying asset.

With CAPEX, you can trade CFDs on 22 cryptocurrencies and other cryptocurrency assets like stocks, ETFs, and Blockchain Future TematiX.

Conclusion

We can certainly say that metaverse coins and NFTs are the keys to the virtual reality of future online platforms. Within a metaverse, you can access digital assets such as virtual businesses, places, virtual clothing, virtual art, and other digital items.

While metaverses that use blockchain technology are becoming more popular, they are still in development. There is a lot of speculation about future developments, and that may cause false spikes in the price of specific metaverse crypto or digital asset. While cryptos of solid metaverse projects could be considered investment opportunities, investors should always do their own research before putting any money in any of these metaverse cryptocurrencies.

Free trading tools and resources

Remember, you should have some trading experience and knowledge before you decide to trade cryptocurrencies. You should consider using the educational resources we offer likeCAPEX Academyor ademo trading account. CAPEX Academy has lots of courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a better crypto trader.

Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
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