I talk a lot about cryptocurrencies because the potential ROI is insane. Today we dig a little deeper into the metaverse, and NFTs. Whether you are familiar with these worlds or not, tune in. I’m about to spill some T about generating wealth in the world of crypto.
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Two Cryptos Set to Explode 6400% 😳With The Metaverse
In August of 2021, a digital image of a guy with a Mohawk sold for 1,500 Ethereum, which at that time was worth $4,379,000. It is one of a series of 10,000 digital images called CryptoPunks. Each depicts a unique character that was randomly generated. They were originally given away for free. The last time, this CryptoPunk #2338 changed hands back in November 2018, it sold for 3.5 Ether worth $443. That means this digital character handed its previous owner a 988000% return in less than three years.
To put that into context, consider that over its first several years as a public company, from its initial public offering in 1982 through 2021, Apple shares rose a little more than 98000%. A crudely drawn digital image went up roughly ten times more than one of the greatest corporate success stories in history in 1/13th a time.
It also trounces the returns of other tech giants like Amazon and Microsoft in a much shorter time span. Yet this isn’t an isolated incident, or is it the most extreme example? One CryptoPunk sold for $5.3 million on August 24th, 2021. Another sold for $5.44 million back in July 2021, two others sold in March 2021 for more than $7 million apiece, and one CryptoPunk went for a staggering $11.8 million. It is a new high-water mark for CryptoPunk pricing. It is sheer madness.
This is the virtual Beanie Baby craze or the digital version of the tulip mania that happened in the Netherlands and the Dutch in the 1600s. It is one of the biggest market bubbles in history. That is what I thought when I first started seeing these numbers, but I dug a little deeper. Once I understood who is buying these CryptoPunks, why they are buying them, and most importantly, how they intend to use them, I realize this is probably the beginning of a whole new world of 10X, 100X, and 1,000X winners. The sooner that you and I grasp what is happening, and the sooner you get involved as an investor, the better.
It’s A Whole New World
I’m going to introduce you to two new ways to go for gains as high as 6,400% as this mega train explodes into the mainstream. However, before we get into the details on those investments, you have to understand the real reason CryptoPunk prices are going through the roof. This is the new playground of the rich and the famous. It is a varied landscape with casinos up and coming art galleries, first-rate concerts, luxury shopping with a focus on personal freedom, and cutting-edge technological innovations. It is easily reached from about anywhere in the world. Every day more people, especially young people, are visiting for work, play education or even all of the above.CryptoPunk is the new playground of the rich and the famous. Click To Tweet
By 2025, it could be one of the twenty most valuable economies on the planet. It is bigger than Israel, and Ireland combined. The CEO of a huge company, Nvidia, thinks it is going to be a new economy that is larger than our current economy. He is a smart dude too. Mark Zuckerberg says he would like to move his entire company to this place as soon as possible.
Meanwhile, other forward-thinking entrepreneurs and investors are quickly snapping up its trophy assets at a crazy pace. CryptoPunks happens to be the prime example, but this place isn’t a city, state, or country. It is not a physical location at all even. It is called the metaverse. It is where many trends and technologies are all starting to intersect.
Anything Is Possible
Take the power of the internet, plus the mobility of smartphones and similar devices, add in virtual reality and artificial intelligence and start layering in all the new possibilities with the blockchain, and the metaverse is where all of these things merge together. It sounds like a science fiction story, but the metaverse is a virtual world intimately connected to our real world where about anything is possible. Some of our daily activities already contain shades of a metaverse future.
For example, do you have any online friends through a social media platform, people you haven’t met in person but who feel familiar? I know I do. That idea of a real personal connection without physical contact is laying the groundwork for a completely virtual world where people meet, interact and have genuine relationships, maybe as only as avatars of their real-life selves. However, this is going to go far beyond and enhance Zoom calls.
With a virtual reality headset, you will get a full 3D panoramic view of the place you are in. We got one of these for our kids for Christmas. I put it on, and they had this one video game where you walked the plank, and I had to take the headset off because I’m scared of heights. I felt like I was going to jump off of a building. It is one of my biggest fears. You are going to be able to go anywhere and do anything from the comfort of an armchair and feel like it is happening. With 5G high-speed networks coming out, individual data bandwidth is going to skyrocket. It is going to be possible to experience much richer, digitally enhanced worlds as you travel through real physical spaces.
For companies, think about these possibilities. They are going to be endless. Imagine being able to alert someone to a sale in your store as they walk by on their way to work, letting them browse your inventory, virtually buy the item in a blockchain-driven transaction, and have the item waiting on their doorstep by the time they get home that evening.
How It Works
If this still sounds crazy abstract, I get it. It still makes sense to get involved immediately, especially after what we have seen during past technological breakthroughs. Remember how unbelievable a fully evolved internet sounded back in 1995? Think about it. We are being able to download videos in a few mere seconds. What were you thinking back in 1995, when you first logged on to the internet and checked your email? It took forever to load up. We pretty much only used AOL. It made that funny noise, “You’ve got mail.” That was exciting. Think about how much further it has gone since then.
Think about how crazy smartphones were when they first launched. Now, smartphones that you have in your pocket are 100,000 times more powerful than the computer that they use to send NASA astronauts to the moon. Think about how skeptical everyone was about cryptos a few short years ago. Make no mistake. The metaverse is going to create opportunities that are as big as any of those other technologies. This trend is already underway. Some people mistake the metaverse for virtual reality. The difference is that the metaverse has a direct tie to our real-world universe, and it is rapidly becoming the next version of the internet, taking it from two dimensions into three and integrating it with our offline lives right.The metaverse is going to create opportunities that are just as big as any of those other technologies. Click To Tweet
An Economy On Its Own
The simplest examples are certain games with their own virtual economies. I’m going to give you an example here. Roblox, it is a video game that lets users interact with each other in a virtual world. Many kids are already using real-world money to buy Roblox as virtual currency Robux. They use their Robux to create avatars who interact with places, things, and other avatars. These avatars can buy and sell real estate or build businesses in Roblox virtual world. If they meet certain requirements, players can also cash out their Robux for real dollars.
There are millions of games inside the Roblox virtual world. It is developed independently by programmers who also collect real-world profits from their work. Roblox has been a huge hit. More than 36 million young people are using the platform. In March 2021, it when public with the evaluation of more than $38 billion. That is bigger than companies like AutoZone, General Mills, and Motorola.
In May 2021, Gucci held a virtual fashion show inside Roblox. Users were able to walk through various rooms and browse items. They could purchase special digital Gucci items for the equivalent of $5 each. One of those items, a queen bee bag, has since been resold for the Robux equivalent of $4,115. That is more than the cost of the actual physical bag at a real-world Gucci store. If you happen to see the movie Ready Player One, which came out in 2018, some of this probably sounds somewhat similar to what the movie portrayed, but Roblox is one of many platforms pointing to the future of a metaverse economy.
My research team is confident that the biggest opportunities in the metaverse lie with projects using blockchain technology to capitalize on this trend because of one special factor. The metaverse encompasses all types of digital things many of us already use, video games, eSports, social media, digital collectibles, cryptocurrencies, and now most famously, nonfungible tokens called NFTs.
What the heck is an NFT? I need to do an episode about this subject for you guys. I plan on doing it. A nonfungible token is simply proof of ownership of a digital asset. It is verified by the blockchain. We overcomplicate what NFTs are. It is digital ownership. Think about like when you get closing documentation when you close on a sale of a home. From the title company, you get a stack of papers that you throw away, or probably, don’t throw them away, but you siphon them off and throw them in a box or filing cabinet because that shows that you own the property. This is the same thing with an NFT, except you don’t get these papers. You get a digital ownership version of those ownership papers.
The majority of NFTs are part of Ethereum, including the CryptoPunks. CryptoPunks are considered some of the first NFTs created on the Ethereum blockchain. Although CryptoPunks are digital pictures, the NFTs representing them are the original authentic version of those images that are documented with blockchain ownership.
As the metaverse continues to grow and scope in importance, these CryptoPunks are quickly becoming important status symbols. It is likely they will be used as avatars in the emerging metaverse. It is the virtual representation of their real-world owners. They will be proof of longstanding participation in this entirely new digital world. It will be like owning the fanciest car in town or a great domain name during the early stages of the commercial internet. I wish I would have bought up dot-com names back when I was in college. Why didn’t I think of that? I should have bought them all, but as many as you can. Some of those are crazy about what they sell for today.
For example, Visa bought a CryptoPunk in August 2021 because certain corporations are starting to recognize the importance of NFTs in the emerging metaverse. They said, “We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce. With our CryptoPunk purchase, we are jumping in feet first. This is just the beginning of our work in this space.”
It is true. CryptoPunks is the beginning. An NFT artwork called Fidenza #313 was sold for $3.3 million. It was bought for roughly $1,400 two months earlier, netting its owner more than 235000% in the span of eight weeks. The most expensive NFT to date, a digital artwork by an artist called Beeple, sold for $69.3 million. That is more than the physical paintings by Picasso. This is the sign that the apocalypse is upon us. At some point, this artwork will hang in the buyer’s virtual office or maybe at a virtual museum inside the metaverse. That is one reason why NFTs will no doubt be a key cog in the rising metaverse economies and their utility. Their value doesn’t stop there.
It is important to recognize that NFTs go far beyond avatars, digital artwork, and in-game accessories. They can also record additional features like future royalty rights, and they also serve as a way to buy, sell, and trade digitally in these emerging virtual worlds. For example, Upland is a property trading blockchain game in it. You can buy digital versions of real places in locations like New York City and San Francisco.
In December 2020, Upland’s digital version of the New York stock exchange sold for the equivalent of $23,000. It is estimated to be worth more now, which means its owner can make a real-world profit on a fully digital piece of property. Meanwhile, the highest prices for digital land are being paid in Decentraland, a 3D virtual world built on the Ethereum blockchain.
Unlike Roblox, Decentraland is completely owned and operated by its users. Originally launched as a beta platform back in 2017, Decentraland’s virtual plots are permanently limited in supply. They were originally changing hands for around $20. These days, a relatively desirable plot might go for $100,000 or sometimes a lot more.
Why would anyone spend this much for a plot of digital land in a single virtual world? The goal is to develop a virtual mall. One that will sell digital assets that can be exchanged for real-world items. It is this idea of blurring the lines between one platform, another, and the real world with the digital that holds the real vision of where the metaverse is going.
The Building Blocks Of The Metaverse
We know that the metaverse is going to be a huge trend. There is no easy way right now to figure out who the biggest winners will be. That is going to be a tough gamble. Some of them might still be the glimmer in an entrepreneur’s eye that hasn’t even come out yet. The Ethereum blockchain has already become a primary building block of certain aspects of the emerging metaverse.
Ethereum is the leading blockchain in the NFT space. Ethereum could be running the metaverse a decade from now, according to the founder. All of this bugs well for a continued run-up in Ether’s price. Although this crypto is already up quite a bit, rest assured there is a ridiculous amount of upsides still ahead. Ethereum, if you haven’t added this to your portfolio yet, you guys are recorded in a show of why I believe it will become the next trillion-dollar coin. Add Ethereum to your portfolio to help playoff this metaverse trend.
That is not, however, one of the two picks that I’m going to talk about now that you guys want to consider adding to your portfolio, that you can help play this metaverse trend. Remember, NFTs are not the metaverse. Neither is Ethereum. They are all potential building blocks of the metaverse. There are different ways to play this massive trend.
I want to give you these two ideas. These are what we call asymmetric paths. Let’s say you put $100 in, and it goes to zero, you lost $100, but the upside of these is 10 times, 20 times to 100 times of that $100. This is where you are in playing in stage four of my five stages of building wealth. This is your speculative type of play. You don’t want to go all in on it on these types of bets. This is where you put a small portion of your total portfolio in, and if it hits, you can move the needle on your net worth. If they don’t hit, no problem. The cashflow-producing income that you are generating from your own efforts, businesses, cashflow-producing assets, and stages 1, 2, and 3 will immediately replenish those funds, and we will take a swing again for the fences over.
Recommended: AXIE infinity
The first recommendation is tied to a game that is similar to Roblox, but unlike that game, it is leveraging blockchain technology to bring new benefits to users. Axie Infinity is a game where users create animal characters called Axies and use them to battle against each other. The characters themselves are NFTs that can be bought, sold, and traded. Inside the game, users fight with their animal characters to win digital tokens called Small Love Potions, SLPs. This is where it gets even crazier.
These SLP tokens can be converted to other cryptos and, ultimately, Fiat currency or dollars. Fiat currency is simply government-produced currency like our dollar most people use in real-world commerce. That means you can earn a real income by plain Axie Infinity. People in the Philippines have quit their day jobs to play the game. Some Filipinos make $1,000 to $2,000 per month, more than twice the average salary in the country. I hope my VA doesn’t get ahold of this because I got one that I like. I don’t even pay him that much, but he is fantastic. I pay him fairly right. He does a great job.
Axie Infinity is now the largest blockchain base game by revenue, generating over $800 million since the start of the year. Axie has also seen its user base sore this past year to now over $22 million monthly active players. As Axis Infinity’s user base is increased, so is the value of its token. It is called Axie Infinity Shards. AXS is the symbol.
On June 1st, 2021, the token was trading at $4.94. It hit $155 more than a 3,000% gain in several months. I didn’t buy it back then. I bought it a few weeks ago. I missed that huge run-up. It is how it goes. That is the beginning of where this platform and its token can go next. Axie Infinity is giving control back to its users and rewarding them for participating, which is why its active user base is soaring. This critical momentum could allow Axie Infinity to quickly move from a cutting-edge gaming platform to a more fully evolved metaverse world.
The ax infinity team has already masked the $1.25 billion war chest from in-game fees and initial token sales. That money gives them plenty of room to expand the ecosystem. The team is already doing that. Axie Infinity expects to launch Lunacia, an open world that is owned, operated and controlled by its players, in the first half of 2022. That is why I think it is smart to get in right now in the fourth quarter of 2021.
In Lunacia, Axie players can develop land they purchase incentive peace to produce more in-game resources, create shops, build houses for their Axies, and more. Land orders can even develop their own games and attractions and charge other people to visit them. Like real estate anywhere else, some locations inside Axie Infinity are more valuable than others. Even the cheapest plot of land sells for more than $10,000 now. Some people think that this game that we know now is only the beginning of what is to come and that the market hasn’t caught on.
Think about what this could be worth. Axie Infinity has generated over $800 million since the start of 2021, with $765 million of that coming within the past 90 days. That is incredible growth. While the price of the token that governs the project, AXS, has shot up over the past years. It still trades at a steep discount to its competitors.
If we took Axies earnings over the past 90 days and forecasted it over a full year, the project could generate roughly $3 billion over 2022. At a total market value of $7.5 billion, Axie is trading at a price-to-earnings ratio of 2.5. PE is a way that people value companies on public exchanges as far as stocks go. It is a ratio that gives you some idea of what people are paying for a share based on how much actual net earnings that company produces.
A virtual platform like Axie has a lot less expenses than ordinary companies. Much of their sales flow through to their bottom line. If you take the average PE ratio of the overall video game industry, which is at 26.5, and apply it to Axie’s current earnings, the token would need to rise 2,000% from its level to catch up to other video game companies. That alone represents a huge gain. Two thousand percent is incredible, but since Axie is on the cutting edge of technology and creating the future of gaming as we know it, the platform’s token should command a multiple, at least three times greater than a traditional video game company.
Companies like Tesla and Amazon trade a piece of at least three times their peers. In that case, each AXS token would be worth $7,962 per token, a 6,432% increase from the price based on how much you know is out there right now. A game like that would turn a $500 investment into $32,660 or every $1,000 investment into $65,320. Taking a small amount of money at risk in the AXS token could make a difference.
You can get this on Coinbase, Gemini, Kraken, or KuCoin. I know most of you probably use Coinbase. I bought it. I put in $1,000, but that is probably on the higher end of what you would want to risk in this type of venture. I would say smaller accounts, anywhere from $100 to maybe up to $500 max. You’ve got to be on guard because this token could go to zero. You’ve got to be prepared for that. Don’t put in more than you are willing to lose.Don't put in more than you're willing to lose. Click To Tweet
That project seems exciting. I want to tell you this. I bought $1,000, and it has dropped almost dropped 10% already, maybe a little bit more, but I’m going to buy more if it drops in price. I believe in the future of the project. I’m in a dollar cost average and pick up something that I believe could pop at an even lower price. I don’t get concerned when things that I buy drop in value because I’m playing a 5 to 10-year trend. If I were playing this for a week or two weeks and it drops right away, you get concerned, but I’m not playing that. I’m playing a longer game.
Enjin As A Solution
Here is crypto picked number two, tied to the metaverse. This is going to solve the metaverse’s biggest obstacle and problem right now. Investing in tokens associated with leading metaverse platforms is a great way to make serious money from this trend. However, most people agree that are in this space, and I’m not in this space. I have never been in the metaverse. I don’t have any desire to do it anytime soon. I probably will eventually, but I’m busy with other projects, including building this platform out.
The biggest challenge to truly parabolic growth is allowing users to make transitions seamlessly and easily between different platforms and information providers. For example, it is not possible to bring your Roblox avatar and its digital assets into Axie Infinity. Likewise, you can’t put on a pair of smart glasses and receive real-time information from hundreds of sources. Even moving from one virtual world’s token to another might take 2 or 3 steps, each taking time, energy, complicated steps, and transactional costs.
The big goal for the metaverse is solving this problem. The first step towards that massive undertaking is simply allowing the user base, particularly the gamers, to take the NFTs from one platform to another in more easy, frictionless ways. That is where the Enjin coin comes in. The token is ENJ. That is the symbol that it trades on.
It is a blockchain ecosystem with products that allow anyone to easily create, manage, distribute, trade, and store blockchain assets. Enjin started as a gaming platform that provided tools for people to build communities around their favorite games. By 2017, it was moving into the blockchain space and development.
Blockchain games rely on smart contracts to function. Smart contracts are lines of code that would execute the terms of an agreement between two parties. A simple, smart contract that you guys have used since you were a little kid is a vending machine. You put in your dollar, and you press the number. A smart contract is pre-programmed into that machine. When you enter the number of what it is that you wish to buy, it dispenses that item to you. That is how a smart contract works in real-world physical everyday life.
The thing is, designing smart contracts for games can be complicated and expensive. Before Enjin came along, the Ethereum setup could lead to huge transaction fees when using smart contracts. For example, a normal transaction fee can skyrocket from $5 to upwards of $50 when traffic on the Ethereum network is high. Enjin decided to write a new protocol from scratch to address this problem. This piece of tech has dropped the cost of using the Ethereum blockchain by as much as 90%. This dramatic decrease in cost makes moving and trading digital items far more efficient.
Enjin has created the engine multiverse where players not only own all their assets but can carry them across games. This is a huge step in allowing more seamless transactions and flow between these previously closed games or systems. Nowadays, developers can use Enjin standards to create these virtual goods easily and very cost-efficiently.
It is already being done in dozens of games and its foreign partnerships with companies. It is even linked up with Microsoft to develop this capability for the company’s hit game Minecraft. Minecraft is huge. As of this recording, nearly 1 million digital items have been traded in the Enjin marketplace, generating over $45 million ENJ worth of transactions. My research team believes this is the start as more games begin to integrate together with Enjin. All it takes is one game to track millions of users who collect and use dozens of in-game items.
Look no further than Minecraft and World of Warcraft. These games of tens of millions of users who each hold dozens of in-game items. This translates to billions of endgame game items for each of these games. Now, there is a 2.5% trading fee that is paid to the original creator of the NFT, but we believe Enjin will add an additional small fee of 1% that accrues value to its token holders. Let’s assume that dozens of games that run on Enjin collectively generate $10 billion in NFT trading volume. That would translate to $100 million per year in revenue for ENG token holders. Gamers were projected to spend $50 billion in 2020 on intangible digital items like avatars and in-game items.
I have seen this with my own kids. They came to me constantly when they were younger for wanting to get V-Bucks to spend on Fortnite digital games. We put a stop to it. It is addicting for them. They want to keep getting the next item and the next item after that. Their thirst for that is never satisfied. We expect Enjin’s earnings to grow at that same rate, which is an annual growth rate expected of 22.3% for in-game digital items growth. Enjin could be pocketing nearly $223 million per year in revenue for the token holders within the next four years.
Let’s get this to the conclusion of what you can potentially earn by buying this token. We can compare Enjin to the likes of some other major gaming companies like we did with Axie Infiniti. The average video game company trades at a price to earning multiple of 26.5. If we gave Enjin the same earnings multiple, it would be valued at $5.9 billion based on $223 million in yearly revenue. That is a 343% increase from Enjin’s token price. That is a pretty sizeable jump. Now you can buy it on Coinbase, Kraken, and KuCoin. I want to wrap this all up, but same concept position size, maybe $100 to $500 for smaller accounts, maybe $500 to $1,000 for larger accounts.
Let’s bring this all together. I know that this sounds ridiculous. People were paying millions of dollars for pixelated artwork and digital plots of land, but it is no different than the early stages of the internet when smart money was snapping up domain names and launching crazy new business models. Wealthy investors and tech visionaries can already see our metaverse future.Wealthy investors and tech visionaries can already see our metaverse future, and they're securing the very best trophy assets and properties ahead of the pack. Click To Tweet
They are securing the best trophy assets and properties ahead of the pack. At least we put a small amount of money into each of the two new token plays we talked about. That could hand you life-changing returns as high as 6,400% over the next few years and potentially many more times that over the long term because make no mistake, the metaverse is coming.
That is a wrap for this episode on the Indestructible Wealth. If you’d like to dive deeper into your own wealth-building strategy, check us out at MyIndestructibleWealth.com and follow along on LinkedIn, Facebook, Instagram, and even TikTok. Send me your questions and your financial challenges, and I promise I will respond. Also, I will think you are awesome if you share and leave me a five-star rating and review on Apple Podcasts. Until next time, remember our mission here is to help you make, keep, and grow the wealth you can enjoy now and for years to come.