Understanding Crypto Investments from a Metaverse Narrative Perspective

The Metaverse narrative is the ceiling of human imagination. It is a virtual universe created by human beings using various technological means to map and interact with the real universe, and it will naturally be all-encompassing. In my opinion, the Metaverse It will be a virtual universe composed of thousands of public chains, private chains and alliance chain galaxies.

What this article will discuss is naturally the category of public chain galaxies.

Reminder: If you think the Metaverse narrative is a hoax, then please automatically ignore the following.

In February of this year, Matt Huang, founding partner of top crypto investment fund Paradigm, asked a very interesting question:

Understanding Crypto Investments from a Metaverse Narrative Perspective

“You emigrated from Earth to an alien planet with a much smaller economy but a promising future.
After landing, you must convert all Earth wealth into:
1. Alien land;
2. Alien currency;
3. Alien Stocks in the stock market;
4. Rare metals;
which one do you choose? Why?

This question reminds me of the relationship between Metaverse (Web3) narrative and public chain, L2, NFT, DeFi, and DAO.

Next, let your imagination run wild without considering whether these narratives are outrageous or not.

First draw two very ugly mind maps, and then expand to describe these sub-paragraphs (da) things (bing).

Understanding Crypto Investments from a Metaverse Narrative Perspective

Understanding Crypto Investments from a Metaverse Narrative Perspective

Public chain ecological galaxy: composed of main chain, L2, subnet, parallel chain, etc.

First of all, the next sub-narrative of the Metaverse and Web 3 is the public chain ecological galaxy.

Among them, Bitcoin is currently the largest galaxy, and it is also the starting point of the big bang of the Metaverse, but this galaxy is relatively single, it mainly produces one of the most versatile and rarest Metaverse precious metals, and it will be accepted by all other galaxies .

Then there are the well-known public chain ecosystems such as Ethereum galaxy, BNB galaxy, Polkadot galaxy, Solana galaxy, Avalanche galaxy, Cosmos galaxy, etc. These galaxies will also have stars (main chain), planets and satellites (L2, subnets) , side chains, etc.).

For example, the Ethereum galaxy is the public chain galaxy we know best. In addition to the main chain stars, it will also have Starknet, zksync, Optimism, Abitrum, Polygon, Aztec, Scroll, Loopring and other major L2 planets and satellites.

Understanding Crypto Investments from a Metaverse Narrative Perspective

ETH is the general currency and fuel resource of the Ethereum galaxy, while the native tokens of L2 and subnets (such as the OP token just announced by Optimism) are the general currency and fuel resource of each secondary planet.

The three components of the public chain ecosystem: DeFi, NFT and DAO

And a galaxy, in addition to general currency and fuel, is also composed of three basic elements: DeFi, NFT, and DAO.

DeFi is equivalent to the financial system in the Metaverse Galaxy. Different DeFi applications correspond to the stocks of different companies, which is very easy to understand.

And NFTs are the building blocks of the galaxy, which can represent anything, such as avatars (avatars), Pass cards, game assets, lands, collectibles, music, videos, etc. that we are currently exposed to the most.

DAO is an organizational group composed of people, which can be various organizational forms such as countries, companies, and alliances in the Metaverse.

Here are a few examples of projects to illustrate:

Uniswap and Curve, as DEXs in DeFi, are equivalent to exchanges of common currencies and fuels in galaxies such as Ethereum.

And NFT trading platforms such as Opensea are equivalent to the exchange of all non-homogenous objects in Ethereum and the Polygon galaxy.

In addition, there will be various common currency (token) and non-fungible objects (NFT) lending, derivative agreements (or organizations).

In addition to these general agreements (or organizations), there are also NFT countries like Yuga labs, which are composed of avatar NFTs (national citizenship), games such as culture, apecoin (national currency), otherside (land), BAYC, etc. (city) and game items (items in the city). Some other NFT projects have not yet formed the concept of a country, but from the perspective of Metaverse narrative, this may become a development trend.

In addition, we cannot rule out the possibility that NFT project parties such as Yuga labs will launch their own public chain, L2 or side chain, so that its narrative will be upgraded from a country to a planet or galaxy, then on this planet, there will be various Financial applications and DAO organizations such as DEX, stablecoins, derivatives, and even other small countries.

How to invest in the Metaverse?

Back to Matt Huang’s question, can I understand it as: When you move from Ethereum, a mature planet, to another planet with development potential, what should you choose to invest in?

First of all, the easiest option is naturally the common currency (or fuel) for this galaxy/planet, if the galaxy has potential, then your investment will pay off, but the downside of this approach is that the returns are not that violent.

Option 1 (land) may also be chosen by many people, which is a sub-concept of the country, but not all land has investment value, but only the core land of big cities has investment value, and the scarcity of such resources More obvious and easier to hype.

Option 3 (stocks in the stock market) corresponds to various DeFi tokens, which seems to be easy for everyone to understand, but the choice is more difficult.

Option 4 (precious metals), corresponding to BTC, etc., hard currency, this kind of investment is also very stable.

In addition, there will be various Metaverse infrastructures, such as cross-chain protocols (Interstellar), oracles (data service companies), decentralized social applications, etc., and so on.

It should be noted that, since the Metaverse is a virtual universe created by humans, no matter it is narratives such as galaxies, planets, countries, company stocks, etc., people should be considered in the first place.

The above fragmentary ideas are still very naive, and everyone taps the bricks.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/understanding-crypto-investments-from-a-metaverse-narrative-perspective/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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