What is the metaverse? How to make money in the meta universe?

The core features of the metaverse

1. Immersive experience: Using VR/AR devices or other terminals makes users feel as if they are in it.
2. Independent economic system: The virtual world has an independent economic system that supports the creation, transaction and circulation of virtual assets (such as virtual real estate, digital goods, cryptocurrencies, etc.).
3. Social interaction: Users interact with others in real time through virtual identities to build social networks.
4. Open co-creation: Users are not only consumers of content, but also creators, and can participate in the construction of the virtual world and rule-making.
5. Fusion of virtual and real: The boundary between the virtual world and the real world is gradually blurring, and real brands and activities can be expanded into the metaverse.

Ways to make money in the metaverse

The money-making logic of the metaverse is based on its economic system and user needs. Here are several common ways (risk and compliance need to be paid attention to):

1. Virtual Asset Trading

• Virtual Land/Real Estate: In meta-universe platforms (such as Decentraland, The Sandbox), virtual land can be bought, sold, leased or developed, and the price depends on location, scarcity and the popularity of the platform. For example, the regional land value of a well-known brand or IP may be higher.
• Digital Collections/NFT: Create and sell digital artworks, game props, virtual clothing, etc. through NFT (non-fungible tokens). For example, artists can publish NFT works on platforms such as OpenSea, and players can trade rare props in the game.
• Cryptocurrency circulation: Some meta-universe uses specific cryptocurrencies (such as MANA of Decentraland and SAND of The Sandbox) as trading media to obtain profits by buying low and selling high or participating in the platform ecosystem.

2. Content creation and service

• Virtual Designer/Architect: Design virtual clothing, buildings, scenes or 3D models for users, and the creation fee is charged. For example, in Roblox, developers can get share through UGC (user-generated content).
• Virtual event planning: Hold virtual concerts, exhibitions, conferences or weddings, etc., and charge ticket fees or sponsorship fees. Singer Travis Scott, for example, once held a virtual concert in the Fortnite meta-universe, attracting tens of millions of viewers.
• Social entertainment anchor: Get rewards or advertising revenue through performances, live interactions (such as virtual talk shows, game live broadcasts) in the metaverse.

3. Participate in platform ecology or development

• Developer/Programmer: Develop tools, plug-ins or applications for the metaverse platform, and make money through platform share or paid downloads (such as Unity, Unreal Engine developers).
• Platform dividends and incentives: Some meta-universe platforms provide token rewards or benefits to early participants, such as completing tasks and inviting users to obtain platform tokens, which may increase value as the platform grows and increases in the future.
• Game training/resource acquisition: Earn rewards by swiping resources, training accounts, unlocking achievements, etc. in the meta-universe game, and then monetize them through a third-party platform.

4. Brand and enterprise cooperation

• Brand entry and marketing: Real-life companies (such as Nike, Adidas, Disney) open virtual stores, release virtual products or organize marketing activities in the metaverse, which require the participation of designers, operators or cooperative promoters, and can make profits through cooperative share or commissions.
• Virtual endorsement/IP authorization: Individuals or virtual idols (such as virtual anchor "Luo Tianyi") provide virtual endorsement services to brands and charge endorsement fees.

5. Investment and Speculation

• Early Tokens/Equity Investment: Invest in cryptocurrencies related to the meta-universe (such as MANA, SAND) or technology company stocks (such as Meta, Roblox), and expect to make profits as the industry grows in the future (high risk, be cautious).
• Virtual asset speculation: Hoard scarce virtual land, NFT and other assets at low prices, and sell them at high prices after the market popularity rises (similar to the real estate speculation and shoes speculation in reality, but lacks supervision and extremely high risks).

6. Other innovation scenarios

• Education and Training: Build virtual classrooms or training scenarios (such as VR vocational training, language learning), and charge course fees.
• Data and computing power services: Provide cloud computing, data storage or AI algorithm support for the operation of the metaverse, and charges through technical services.

Things to note and risks

1. Legal and compliance:
   • China has strict supervision of cryptocurrencies and NFTs, and virtual asset transactions may involve legal risks (such as the "Announcement on Preventing the Risk of Token Issuance and Financing") and must comply with domestic policies.
   • Some metaverse platforms involve overseas operations, and attention should be paid to cross-border capital flows and data security issues.
2. Technical threshold and cost:
   • Participating in development or high-end content creation requires certain technical capabilities (such as programming, 3D modeling), and ordinary users may need learning costs.
   • Hardware devices (such as VR headsets, high-performance computers) are expensive and have a large initial investment.
3. Market volatility:
   • The price of virtual assets is greatly affected by market sentiment, and there is a risk of large fluctuations or even zeroing (such as some cases of plunging NFT projects).
4. Privacy and Security:
   • Virtual identity information and asset security may face the risk of hacker attacks or platform escape, so you need to choose a reliable platform with caution.