Metaverse is getting more and more popular. Moreover, the world is often associated with cryptocurrencies which are considered a new way to gain money. Metaverse is a three-dimensional (3D) virtual space also known as a virtual universe. Many have also started investing in this metaverse world. One of the investment instruments in the metaverse is […]
Metaverse is getting more and more popular. Moreover, the world is often associated with cryptocurrencies which are considered a new way to gain money. Metaverse is a three-dimensional (3D) virtual space also known as a virtual universe. Many have also started investing in this metaverse world.
One of the investment instruments in the metaverse is cryptocurrency. This is because cryptocurrencies are becoming utility tokens in this new world. Meanwhile, non-fungible tokens (NFT) are tokens specifically for virtual collectibles. Although considered to be able to provide large profits in a short time, this investment is also high risk.
What are cryptocurrencies?
Cryptocurrency or crypto currency is digital currency that is not available in physical form. It is invisible, but it has value, and all transactions are recorded in a blockchain technology system (block chain), the security of which is very difficult to hack, as this technology is almost impossible to fake. List of 5 well-known metaverse coins in the international market:
Axie Infinity (AXS)
AXS is basically a blockchain-based game that is quite popular in 2021. To be able to play this game, players must have Axie or a character who is a digital pet in this blockchain game. This Axie is an NFT that gamers can buy and trade. Axie has one of the largest market caps of all metaverse cryptocurrencies, with a value of over 5 billion US dollars with a YTD (Year to date) performance of -20.91 percent.
Sandbox is one of the most popular metaverse coins in 2021 and is experiencing a price spike. The Sandbox was launched in 2011 by Pixowl, a game studio. This blockchain-based platform combines two things, namely cryptocurrency and games.
Decentraland is a virtual reality platform powered by the Ethereum blockchain. A group of developers from Argentina launched it in 2016. Everything in Decentraland is NFT, including commodities, clothing and especially real estate called LAND which is purchased using MANA coins. Properties owned in Decentraland can be rented out to people and make money.
Flockey Inu (FLOKI)
Floki Inu is classified as a coin that has a low price and is included in the category of a new type of cryptocurrency. Even so, Floki was brave in creating big breakthroughs. Finally, Floki partnered with technology company TechTree and announced that it has successfully built Floki University’s Premier Crypto Educational platform.
Highstreet World Coin is a decentralized Play-to-Earn Game MMORPG metaverse where brands, both conventional and crypto, can leverage the marketplace to integrate and build their presence in the digital world.
This concept relies directly on the current e-commerce system, players buy physical products to use in the game, but also have the opportunity to redeem goods in real life. Many well-known brands, such as Hershey’s Chocolate and Victoria’s Secrets, have contributed components to the commercial metaverse the team has built over time from Madison Square Garden to brands like L’Oreal.
Characteristics of illegal crypto entities that must be known:
- Does not have a permit from the Commodity Futures Trading Supervisory Agency (CoFTRA)
- Offers the sale of crypto assets with the lure of fixed yields and tends to be lucrative
- Marketing crypto assets through crypto assets through a tiered marketing scheme or better known as member get member
Along with the increase in crypto buying and selling transactions, the number of fraud cases also increases. This risk of fraud can occur if investors do not have basic knowledge of this relatively new investment model. What’s more, beginners generally know crypto only as a place to get big profits without knowing the risks.
Four schemes that fraudsters use in crypto investments:
- Developers offering crypto assets rely solely on price spikes and neglect their usefulness.
- Crypto asset developers can easily abandon their projects and take investors’ money away
- Stealing assets through physical stores (exchange)
- Offer a trading business application to raise funds
NFT in the Metaverse, an Innovation that will be Applied in the Digital Industry
Mataverse, which was recently launched by Facebook and several technology companies, in the world of Metaverse NFT is a non-fungible token or token that cannot be exchanged. Reporting from The Economic Times, explained NFT is a digital asset that exists on a public blockchain and serves as a record of ownership. NFTs are sold and bought using digital currencies, such as Bitcoin.
Once recorded in the blockchain, the NFT owned can no longer be duplicated by other parties. NFT can be used in decentralized applications (DApps) to enable creation and ownership of unique digital items and collections. NFT can also be traded on the open market.
The opportunity for NFT to become a major component in the digital economy is very wide open. This is because NFT can be used in many fields, such as video games and digital identity. Before deciding to purchase an NFT, one should consider several things, such as what type of digital wallet will be used to store it and what type of cryptocurrency the potential buyer will use to complete the purchase process.
Most NFTs are purchased with Ethereum and ERC-20 tokens such as Flow and WAX. Recently, the name NFT has come back because many people are using it again.
An example is Dolce & Gabbana, an Italian fashion company. The collection of clothes and jewelry is valued at USD 81 billion. Some of the collections are sold in the form of digital files. There is also a work made by a smart robot named Sophia. The work in collaboration with digital artist from Italy, Andrea Bonaceto, was offered for USD 9.9 billion in NFT form. The work is about 12 seconds long in the form of an MP4 file entitled Instansiasi Sophia.