While technology enthusiasts and gaming and social media platforms are busy talking up the other-worldly experiences we’re all going to enjoy in the metaverse, a growing number of other players are focusing on a different digital opportunity, and rushing to find new ways to make real money hawking goods in a virtual economy.
In just a matter of weeks, the metaverse has become the new obsession, not just for Big Tech, but also for the investment sector as well. One crude but telling barometer of the current level of ‘meta-fever’ could be seen in the 128 times the word “metaverse” has been used this year during investor presentations, Axios reports, compared to only seven times in all of 2020.
Though a fully realized metaverse is still years away, investors of 2021 seem to see the money-making potential of virtual worlds at a distance, energized by engagement figures from the brands that reign the virtual spaces that characterize of the proto-metaverse, with gaming platform Roblox a prime example.
Apple Insider reported that the social gaming platform is iPhone’s biggest gaming earner with “$3 million in revenue per day, and Apple gets 30% of that.” That’s an estimated $900,000 per day into Apple’s coffers from people engaging in the Roblox ecosystem alone.
In its third-quarter earnings report on Nov. 8, Roblox said that bookings — the term it uses to describe purchases of the platform’s Robux in-app digital currency — increased 28% to $637.8 million. This just hints at the upside potential of spending inside the forming metaverse.
In its new report “2022: A World Transformed” app analytics platform App Annie said “Play-to-earn models — games that allow players to monetize in an open economy — combined with metaverses which emphasize players’ self-expression will be the biggest drivers of mobile gaming innovation in 2022.”
See also: Big Tech and Telecom Follow Facebook in Metaverse Ramp-Up
Payments in a Virtual Economy
As this metaverse economy comes into being and expands, the numbers are impressive.
Citing recent market analysis, Entrepreneur.com reported on Monday (Nov. 15) that the metaverse could represent an $800 billion market by 2024.
“One of the most important elements is the payments infrastructure, which will undoubtedly be one of the cornerstones of the metaverse,” Reuters reported. “The ability to buy, sell and most importantly, own things in the metaverse could be the most transformative part of this new era.”
While proprietary digital money like Robux are leading the way, many see metaverse payments as ultimately becoming a job for cryptocurrencies made for virtual commerce.
While Meta (formerly Facebook) continues efforts to field its own digital currency, the company announced in October that its metaverse “will support non-fungible tokens (NFT) in a possible boost to the Ethereum protocol, where the digital collectibles format has thrived,” according to CoinDesk.
That same article quoted Facebook/Meta Head of Metaverse Products Vishal Shah saying, “Our goal is to provide a way for as many players as possible to build a business in the metaverse.”
Other players are also leveraging crypto as a means to buy and sell virtual goods in VR worlds.
“Several blockchain-based platforms require Ethereum-based crypto tokens, such as MANA for Decentraland and SAND for The Sandbox, to purchase and trade virtual assets,” Reuters recently reported, adding, “In Decentraland, users can trade NFT artworks or charge entry to a virtual exhibition or concert. They can also make money by trading land, prices of which have surged over the past few years. On Roblox, users can make money by charging other users for access to games they create.”
Read also: Brands Prepare to Take Competition Virtual as Metaverse Goes Mainstream
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