In this market there is always great fashion. Fashion arrives. And we are always talking about a revolution that will change everything. Investors fall in love with projects. They become fanatical. They radicalize. The sector thrives quickly, due to extreme enthusiasm, and then gives way to the next fad. Then the cycle repeats itself. In this space, the “eternal loves” alternate in a matter of weeks. ICOs, IEOs, futures, Defi, meme coins, and NFTs had their 15 minutes of fame. Now the metaverse may be the next big thing.
In the world of investing, expectations are more important than reality. That is, what we think of the future in the present is, in fact, more important than the present or the future itself. In this case, the rumors are more momentous than the facts. Certain. It is very common, at this stage, the oversizing of things. In other words, investors tend to exaggerate at first. It is, during the utopian period, when the imagination runs wild. That means that optimism overflows presenting great financial opportunities.
To reflect on this point, let’s talk for a moment about the ICO fever of 2017. Back then, the entire ICO sector soared euphorically. Most of the projects raised a lot of capital due to unbridled optimism. From that boom, very few projects survive today. But that does not matter. The failure of most of those projects did not stop many investors from making money at the time. Those who came in early and selling at the right time took her home run.
The smart platform industry, for example. Most of the projects have managed to raise capital. Because the boom infected the entire sector. However, we well know that the “smart” future is highly likely to be built by a few players. In other words, many of the smart platforms in the top 10 of the coinmarketcap today will disappear in the next few years. This is the irony of fashions. The so-called “ethereum killers” are growing in capitalization precisely because of the popularity and success of Ethereum. I mean, The whole sector grows thanks to a couple of dominant projects. They grow because of the high expectations of the idea “smart platforms” in general. However, in the future, most “smart” projects will fail.
Most of the projects today are mere promises. And nobody promises as much as the one who is not going to deliver. During the promise phase, anything is possible. We have a utopia. Perfect, simple and unsurpassed. Of course, nothing is a reality yet. That is the key period. This is when projects get their most loyal following. Here is where faith is born. For this reason, if you say something negative about, say, Shiba Inu, an irate fan accuses you of being part of a conspiracy and quotes you from the White Paper with a pseudo-religious faith. Of course the White Paper speaks wonders. Of course it is a revolutionary project. The narrative has to be spectacular in order to attract capital in the beginning. But from said to fact …
It is very easy to promise. The difficult thing is to do. Many serial entrepreneurs have discovered this. They fund projects, raise capital, sell their coins, and then leave to found the next project. That was the dynamics of the ICO boom. Elon musk it is the most important representative of this phenomenon. In fact, he is the richest man in the world at the point of promises. His companies have always made losses. At best, they are very poor in sales. However, the subject is a snake charmer. Its secret lies in its narratives. Investors continue to trust him because he is the “man who is building the future.” He is the man of promises. His very expensive saves him. Because his followers believe in him blindly. Definitely, reputation is how valuable one can be.
Where are the big promises right now? In the metaverse. The new revolution. This means that all projects associated with the metaverse will receive their share of enthusiasm. The great promises begin. And people will blindly believe everything that comes their way. That is the key. The metaverse is generating a lot of excitement. We are entering the utopian stage. A new sector is already being created. A fashion that will be on everyone’s lips.
The common investor is always late for almost everything. Therefore, on rare occasions, you get the millionaire returns of those who do arrive early. However, the metaverse has it all to become the next big thing. It has the narrative. In other words, the vision. And he has a promoter team with credibility, money and focus. Also, people have reacted positively. The metaverse is a higher stage in the digitization process. It is the next frontier. And now everyone recognizes that there is a lot of money to be made in that new world. It is the complete recipe.
The metaverse refers to the digital universe that is accessed through virtual reality and augmented reality devices. We have software, hardware, an economy, and a 3D space. We can create an identity, we can interact with others, we can buy and sell digital objects, and we can create entire worlds. Science fiction books and movies have already presented us with the possibilities. And we already have the technical possibilities to start with its construction. In fact, construction has already started. We already have investment and development.
Do you want to invest in the metaverse? Well, Facebook (now Meta), Nvidia, Roblox, and Microsoft are the corporations in the sector. We also have an ETF: Roundhill Ball Metaverse (META). Now, when it comes to cryptocurrencies and tokens, we can rule out: Decentraland (MANA). Sandbox (SAND) and Axie Infinity (AXS).
We do not know the future. But we can know the expectations of the future in the present. We also know that the market is extremely irrational when it gets excited about something. He falls in love, becomes passionate and radicalizes. In other words, fashions have a hypnotic effect. Of course, not all players in this sector will be successful. Usually only a few will be successful. But that doesn’t matter much at this stage. In the promise stage, the sector tends to grow together.
The risk is obvious. It is perfectly possible that the metaverse fails to take off and the audience becomes skeptical. However, here we are not talking about certainties but about probabilities. The cards are definitely drawn for the metaverse sector to be the next big thing. We can let it go. Or we can ride that wave in its early stage. It is not advice. It is a reflection.