With more and more companies entering into the Metaverse, a commonly asked question is: how much does it cost? In this article, we’ll be looking at some of the expected costs of entering into and participating in the metaverse, from investment to expansion and branding. Let’s dive right in.
Businesses of today know all too well the importance of being early to the party. That’s where the opportunities lie. This is no different when it comes to the rapidly expanding Metaverse. Learn all about the metaverse and once you’re ready and excited for your business to become part of it, read on to learn about the costs of doing so.
Brands entering the metaverse are expanding their virtual presence there. This means the early adopters among society (those already interacting in the metaverse) can engage with your brand in new and exciting ways. This helps to develop relationships and ensure that these brands are essentially at the forefront of the future. This takes the current experiences with brands online to a whole new level - it’s not just about interacting with a website anymore.
Investing in the Metaverse
There are many big tech companies investing in the metaverse and driving its expansion. As more people begin using it, we’re seeing more transactions taking place within it. There are various ways to do this, whether it’s investing in the companies that are building the metaverse infrastructure, or using cryptocurrency to purchase digital assets for this virtual universe.
Microsoft will be acquiring Activision Blizzard for $68.7 billion in the biggest ever gaming deal. By signing this deal, they are investing in the expansion of the metaverse, since gaming and entertainment is a key driver of this virtual universe.
Based on the above, it is clear that investing in the infrastructure of the metaverse is the first crucial step. The cost of this is entirely up to you and your portfolio. The next step is to invest in assets.
Purchasing Digital Assets in the Metaverse
One of the largest transactions in the metaverse to date has been the purchase of a plot of land in Sandbox (a part of the metaverse) by Republic Realm, for over $4 million. Digital real estate is, in fact, one of the hottest topics when it comes to buying in the metaverse. This makes sense as it secures your space within it with virtual land.
To buy a plot of land, you purchase it as an NFT in the blockchain via a marketplace. An NFT can therefore act as a title deed, and the transaction is publicly logged. Investors can investigate the market and follow all of the usual asset-based valuations of the real world. For example, you can compare recent trading prices, cost trends and sales volumes.
Based on this, we can see that the cost of a company being in the metaverse is not clear cut. As in the real world, the price of land differs from one part of the world to the next. It’s about finding the optimal space for you within it and building from there.
Let's take a look at the costs and benefits of buying property in the metaverse...
|Size||1x1 = 96x96x128||1x1= 96x96x128||1x1= 16x16x20||1x1= 16x16x20|
|Location||Not close to busy and popular district/ areas/lands||Near to popular names, popular brands, districts||Far from GENESIS PLAZA and the road||Next to GENESIS PLAZA and the road|
|Platforms||Sandbox marketplace and OpenSea||Sandbox marketplace||Decentraland marketplace and OpenSea||Decentraland marketplace and OpenSea|
|Benefits||Access to normal/regular assets||Access to premium assets|
|Price||Starts from 1.7 ETH||Starts from 6 ETH||Price starts at 3 ETH||Price starts at 14 ETH|
Once you have purchased land, there are also potential costs related to building on the land. For a 1x1 area, the costs typically start at $30,000 if landowners opt to create a customized experience rather than using the native building tools and stock content available on each platform.
To trade in the Metaverse, you’ll need tokens, aka virtual currency. These facilitate digital transactions using blockchain technology. This framework means that these transactions are secure and instantaneous. With tokens, you can buy a range of products, from memberships to clothing for your avatar.
This will help to expand the metaverse in terms of its practical functioning. The third step will be to expand socially.
Social Investment in the Metaverse
Brands entering the metaverse will need to assess their product and service offering to see how they can best serve people in this new world. Finding ways to translate your brand will be important if you are to be successful in it. As such, your brand will need to spend time in the metaverse and work on creating your communities within it.
The cost of this will vary, as all branding endeavors do. A social approach will not only have a monetary amount attached to it - it will also include putting resources like time into the equation. Getting actively involved in groups and clubs and networking will be key to developing the metaverse as a whole and solidifying your brand’s role within it.
All in All: Costs for Companies in the Metaverse
The metaverse is still in its early days and there is a lot that still needs to happen before it becomes full-fledged. If you’re not quite ready to dive in, you can always begin to experiment with meta-based techs, like AR and VR.
For most brands, watching the developments in it is enough for now. For others, investing in the three steps noted above makes the most sense. It’s also not expected that people will be cashing in on these investments with major profits anytime soon. If that is your goal, then it's best to invest elsewhere.
There are various ways for businesses to enter into the metaverse. The cost will largely vary depending on the degree of your involvement in this virtual space.
We’d love to hear your thoughts - how will your brand translate its experience in the metaverse one day? Reach out to us at Nexa. We can assist your business with:
- Selecting the right land
- Facilitating the purchase,
- Helping you to build within the metaverse
- Marketing and PR strategies for the metaverse
Ready for a deep dive into the world of web 3.0 & the metaverse? Here’s a guide on everything you need to know in order to become a pioneer of the future, with an array business opportunities to unlock. Download the White Paper and start your Web 3.0 journey today.