You’re in the desert. It’s empty, no one’s here. But you’ve heard that the world’s biggest tycoons are planning to take this empty place – the locals call it ‘Las Vegas’ – and build huge casinos. You’re the first financial adviser in this desert. What should you do?
Our modern-day Vegas is the Metaverse. The biggest tycoons in the world are building in up. Right now, it’s mostly empty space. But wealth managers can get positioned right now to win big when this Metaverse bursts with buyers.
What’s the Metaverse, anyways?
Much like the Internet itself, the Metaverse is a virtual environment. Just like on the internet, people can communicate with each other and share information. And just like in a video game, users are represented by an avatar. With improved VR and AR AR technology, the Metaverse promises a more connected, immersive experience.
Yes, but where’s my office?
When Steve Wynn was buying his plots in the 60s, he was mostly buying empty space. Time and investment grew his assets’ value into billions of dollars. Over at the Metaverse, 2021 saw virtual real estate sales exceeded $500 million.
For example, Metaverse real estate firm Republic Realm recently made the largest virtual land purchase in history for $4.3 million. The plot resides in Sandbox, a virtual world similar to Roblox and Minecraft, where Gucci’s also grabbed some real estate. Over at Decentraland MANA , another virtual world, fashion designer Philipp Plein purchased a property for $1.4 million, on which he plans to build “luxury retail stores, entertainment, an art museum, a hotel and luxury residences”.
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Are these follies or genuine investments? Honestly, it’s hard to say. But, as the Metaverse grows more popular, both value and demand for its real-estate will grow. When it comes to financial advice, just keeping an eye on virtual real estate is enough to position you ahead of the pack.
How do I prospect on the Metaverse?
Even without VR, users are already hanging out in virtual worlds.
Meet Discord servers: virtual spaces where people can gather to chat. They’re a combination of a Slack channel, a voice-chat room, and a way to jointly watch shows or play multiplayer games. It’s where the tribe meets.
Already, many active servers are set up to discuss investing, but the list is dominated by crypto and trading enthusiasts. Building a Discord server is an astounding opportunity for wealth managers to help their clients get involved in the Metaverse.
And how do I sign a contract?
Blockchain and the Metaverse go together like a horse and carriage. Transactions on the Metaverse will be powered by smart contracts, which are contracts written in code. When the conditions of a smart contract are met, the contract automatically executes the terms of the agreement. This could be anything from transferring money to transferring ownership of an asset.
If you’re still not convinced – I get it. When Crypto enthusiasts told me in 2015 that HNW clients are well advised to keep 5% of their portfolio in Bitcoin BTC – many advisers thought it was crazy too. Bitcoin was priced then at around $300. Today, as it trades at its lowest point in the last year, it’s worth over $30,000.
I’m heading out to the Metaverse, and I’ll see you when you get there!