I talk a lot about Cryptocurrencies because the potential ROI is insane. Today we dig a little deeper into the Meta verse, 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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About Indestructible Wealth: I’m Jack Gibson. I’m your wealth strategist and I’m here to help you make some money. The Indestructible Wealth Podcast is for young entrepreneurs who want to make, keep and grow wealth to enjoy now, and for years to come.
Episode #49 – Two Cryptos Set to Explode 6400% with the Meta verse
Podcast Episode Transcripts:
Disclaimer: Transcripts were generated automatically and may contain inaccuracies and errors.
In August, a digital image of a guy with a mohawk sold for 1,500 ether (ETH), worth $4,379,924.93 at the time…
It’s one of a series of 10,000 digital images called “CryptoPunks,” each depicting a unique character that was randomly generated. They were originally given away for free.
And the last time this CryptoPunk, #2338, changed hands back in November 2018, it sold for just 3.5 ETH, worth $443. That means this digital caricature handed its previous owner a 988,596% return in less than three years. To put that figure into context, consider that over its first 39 years as a public company – from its IPO in 1982 through 2021 – Apple’s shares rose a little more than 98,000%.
So a crudely-drawn digital image went up roughly 10 times more than one of the greatest corporate success stories in history… in one-thirteenth the time.And as you can see from the chart above, it also trounced the returns of other tech giants like Amazon and Microsoft in a much shorter timespan.
Yet this isn’t an isolated incident. Nor is it the most extreme example. One CryptoPunk sold for $5.3 million on August 24… Another sold for $5.44 million back in July… Two others sold in March for more than $7 million apiece…And one CryptoPunk recently went for a staggering $11.8 million, a new highwater mark for CryptoPunk pricing.
It sounds like sheer madness, right?
A virtual Beanie Baby craze or the digital version of the Tulip mania from the 1600s – one of the biggest market bubbles in history. That’s definitely what I thought when I first started seeing these numbers. But then, I dug a little deeper.Because once I understood who’s been buying these CryptoPunks…Why they’re buying them… And most importantly, how they intend to use them…
I realized this is just the beginning of a whole new world of 10x, 100x, and 1,000x winners. The sooner you grasp what’s happening, and the sooner you get involved as an investor, the better. So in just a minute, I’ll introduce you to two new ways to go for gains as high as 6,400% as this megatrend 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 Famous.
It’s a varied landscape with amazing casinos, up-and-coming art galleries, first-rate concerts, and luxury shopping… With a focus on personal freedom and cutting-edge technological innovation…Easily reached from just about anywhere in the world…
And every day, more and more people – especially young people – are visiting for work, play, education, or all of the above. By 2025, it could be one of the 20 most valuable economies on the planet… bigger than Israel and Ireland combined.A CEO of the huge company NVIDIA thinks it “is going to be a new economy that is larger than our current economy.”
And Mark Zuckerberg says he’d 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 frenzied pace. CryptoPunks happen to be the prime example. Because this place isn’t a city, state, or country.
In fact, it’s not a physical location at all. It’s called the “metaverse,” and it’s where many trends and technologies are all starting to intersect. Take the power of the internet… Plus the mobility of smartphones and similar devices…
And add in virtual reality and artificial intelligence. Now, start layering in all the new possibilities of the blockchain – Teeka Tiwari’s #1 trend of the decade. 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 just about anything is possible. Some of our daily activities already contain shades of a metaverse future.
For example, do you have any online-only “friends” through a social media platform – people you haven’t actually met in person but who feel familiar? 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 only as avatars of their real-life selves. However, this will go far beyond an enhanced Zoom call.
With a virtual reality headset, you’ll get a full 3D panoramic view of the place you’re in… you’ll be able to go anywhere and do just about anything from the comfort of an armchair and feel like it’s actually happening. With 5G networks, individual data bandwidth will skyrocket. So it will be possible to experience much richer digitally-enhanced worlds as you travel through real, physical spaces.
For companies, the commercial possibilities will 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.
Look, even if much of this still sounds abstract, it makes sense to get involved immediately – especially after what we’ve seen during past technological breakthroughs. Remember how unbelievable a fully evolved internet sounded back in 1995? Or how crazy smartphones were when they first launched? Or how skeptical everyone was about cryptos just a few short years ago?
Make no mistake: The metaverse is going to create opportunities that are just as big as any of those other technological revolutions.In fact, this trend is already underway. Some people mistake the metaverse for virtual reality.
The difference is that the metaverse has direct tie-ins to our “real-world” universe. And it’s rapidly becoming the next iteration of the internet… taking it from two dimensions to three… and integrating it with our analog lives.
Right now, the simplest examples are certain games with their own virtual economies. Take Roblox (RBLX), 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’s 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’s virtual world. If they meet certain requirements, players can also cash out their Robux for real dollars. There are literally millions of games inside the Roblox virtual world – 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 currently using the platform. In March, it went public at a valuation of more than $38 billion. That’s bigger than S&P 500 companies like AutoZone, General Mills, and Motorola. In May, Gucci held a virtual fashion show inside Roblox. Users were able to walk through various rooms and browse items. And they could purchase special digital Gucci items for the equivalent of $5 each.
One of those items, a Queen Bee Dionysius bag, has since been resold for the Robux equivalent of $4,115. That’s more than the cost of the actual physical bag in a real-world Gucci store. Other brands like Vans have since established their own areas within the Roblox universe as well.
If you happened to see the movie Ready Player One, which came out in 2018, some of this probably sounds somewhat similar to what that movie portrayed.
But Roblox is just one of many platforms pointing to the future of a metaverse economy.And we’re confident that the biggest opportunities in the metaverse lie with the 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 most famously, non-fungible tokens (NFTs).
An NFT is simply proof of ownership of a digital asset that’s verified by a blockchain. The majority of NFTs are currently part of Ethereum (including CryptoPunks). In fact, CryptoPunks are considered some of the very first NFTs ever created on the Ethereum blockchain.
So although CryptoPunks are digital pictures, the NFTs representing them are the original, authentic versions of those images with documented blockchain ownership. As the metaverse continues to grow in scope and importance, these CryptoPunks are quickly becoming important status symbols.
It’s likely they’ll be used as avatars in the emerging metaverse – virtual representations of their real-world owners. Essentially, they’ll be proof of long-standing participation in this entirely new digital world.It will be much like owning the fanciest car in town or a great domain name during the early stages of the commercial internet.
Even corporations are starting to recognize the importance of NFTs in the emerging metaverse.
For example, Visa bought a CryptoPunk in August and said,
We think NFTs will play an important role in the future of retail, social media, entertainment, and commerce… With our CryptoPunk purchase, we’re jumping in feet first. This is just the beginning of our work in this space.
It’s true. CryptoPunks are just the beginning.
An NFT artwork called Fidenza #313 recently sold for $3.3 million. It was bought for roughly $1,400 two months earlier… netting its owner more than 235,000% in the span of eight weeks. Meanwhile, the most expensive NFT to date – a digital artwork by Mike “Beeple” Winkelmann – recently sold for $69.3 million. That’s more than physical paintings by Picasso.
At some point, this particular artwork will “hang” in the buyer’s virtual office or maybe at a virtual museum inside the metaverse. That’s one reason why NFTs will no doubt be a key cog in the rising metaverse economies. And their utility doesn’t stop there…
It’s 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. As such, they also serve as the way to buy, sell, and trade digital land in 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. Upland also has its own unique currency that can be converted to and from actual dollars.
In December 2020, Upland’s digital version of the New York Stock Exchange sold for the equivalent of $23,000. It’s estimated to be worth more today, which means its owner could make a real-world profit on a fully-digital representation of a piece of property.
Meanwhile, the highest prices for digital land are currently 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 more… sometimes a lot more.
Why would anyone spend this much for a plot of digital land in a single virtual world?
In Boson Protocol’s case, the goal is developing a virtual mall – one that will sell digital assets that can be exchanged for real-world items.
Decentraland already has casinos, where workers are paid MANA to operate the games… Enthusiasts talk about the day when there will be full-time digital real estate agents and artificial intelligence-driven clerks running virtual stores.
It’s this idea of blurring the lines between one platform and another – and the real world with the digital – that holds the purest expression of where the metaverse is going.
The metaverse is going to be a huge trend. At this point, there is also no easy way to determine who the biggest winners will be. Some of them might still be the glimmer in an entrepreneur’s eye. The Ethereum blockchain has already become a primary building block of certain aspects of the emerging metaverse.
For example, Ethereum is the leading blockchain in the NFT space. One of Ethereum’s founders, Vitalik Buterin, said Ethereum could be “running the metaverse” a decade from now. All of this bodes well for a continued runup in ether’s price. So although the crypto is already up quite a bit, rest assured there is a ridiculous amount of upside still ahead.
I recently recorded a podcast on why I believe it will become the next trillion-dollar coin. remember that NFTs are not the metaverse. Neither is ETH. They are all potential building blocks of the metaverse – different ways to play a massive, rapidly-evolving trend. The metaverse is going to be absolutely huge, and it’s smart to have many different ways to play it.
So we want to give you two more ideas that are perfect asymmetric bets on everything we’ve just talked about in this issue…
Metaverse Idea No. 1:
A Platform Token That’s Going Bonkers
The first new recommendation is tied to a game that’s similar to Roblox… but unlike that game, it’s 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). These SLP tokens can be converted to other cryptos and, ultimately, fiat currency.
That means you can essentially earn a real income just by playing Axie Infinity. In fact, 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.
Axie Infinity is now the largest blockchain-based game by revenue, generating over $800 million since the start of the year. Axie has also seen its user base soar this past year to now over 22 million monthly active players. And as Axie Infinity’s user base has increased, so has the value of its token – Axie Infinity Shards (AXS).
On June 1, the token was trading at $4.94. This past week, it hit $155.08 – more than 3,039% in just over four months. But that’s just 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. And this critical mass could allow Axie Infinity to quickly move from a cutting-edge gaming platform to a more fully evolved metaverse world.
You see, the Axie Infinity team has already amassed a $1.25 billion war chest from in-game fees and initial token sales. That money provides plenty of runway to expand the Axie Infinity ecosystem, and the team is already doing so.
Just as one example: Axie Infinity expects to launch Lunacia, an open world that’s owned, operated, and controlled by its players, in the first half of 2022.
In this world, Axie players can develop land they purchase as NFTs to produce in-game resources, create shops, build houses for their Axies, and more. Landowners can even develop their own games and attractions and charge other people to visit them. That should move Axie more toward a completely open world like Decentraland. And it creates a lot of new profit potential in the process. No wonder a private investor recently purchased nine plots of land in this new metaverse for $1.5 million.
Just like real estate anywhere else, some locations inside Axie Infinity are more valuable than others. But even the cheapest plot of land sells for more than $10,000 today.
Some savvy Axie Infinity users are speculating that the game we know today is only the beginning of what is to come… And we couldn’t agree more.However, the market hasn’t yet caught on. It’s still valuing Axie’s tokens as if they are simply stakes in a trendy gaming business.
What It’s Worth
As mentioned above, Axie Infinity has generated over $800 million since the start of this year… with $765 million of that coming within the past 90 days.
And while the price of the token used to govern the project (AXS) has shot up over the past year, it still trades at a deep discount to its legacy competitors.
If we annualize Axie’s earnings over the past 90 days, the project could generate roughly $3 billion over the next year. And at today’s market cap of $7.5 billion, Axie is trading at a price-to-earnings (P/E) ratio of 2.5.
Virtual platforms like Axie Infinity have significantly smaller expenses than ordinary companies, so much of their sales flows through to their bottom line. If you take the average P/E ratio of the overall video game industry, which is 26.5, and apply it to Axie’s current earnings, the token would need to rise 2,070% from its current level.
That alone represents a substantial gain.
But since Axie Infinity 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.
For instance, cutting-edge tech companies like Tesla and Amazon trade at P/Es of at least three times their peers. In that case, each AXS would be worth $7,962 per token… a 6,432% increase from today’s price based on circulating supply.
A gain like that would turn a $500 investment into $32,660. Or every $1,000 investment into $65,320. So risking just a small amount of money in the AXS token today could easily lead to a life-changing fortune as the future of blockchain gaming brings more and more people into the metaverse.
Action to Take: Buy Axie Infinity (AXS)
Buy-up-to Price: $136
Buy It On: Coinbase, Gemini, Kraken, or KuCoin
Metaverse Idea No. 2:
Solving the Metaverse’s Biggest Obstacle
Investing in tokens associated with leading metaverse platforms is a great way to make serious money from this trend. However, most people agree that the biggest challenge to truly parabolic growth – and the key to the purest expression of the metaverse concept – is allowing users to make seamless transitions between different platforms and information providers.
For example, it isn’t possible to bring your Roblox avatar and its digital assets into Axie Infinity.
Likewise, you can’t currently 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’s might take two or three steps, each requiring time and transactional costs. The next big goal for the metaverse is solving this problem.
And the first step toward that massive undertaking is simply allowing users, particularly gamers, to take NFTs from one platform to another in more frictionless ways. That’s where Enjin Coin (ENJ) comes in.
It’s 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. And by 2017, it was moving into blockchain development.
Blockchain-based games rely on smart contracts to function. Smart contracts are basically lines of code that execute the terms of an agreement between two parties.
The thing is, designing smart contracts for games can be a complicated and expensive process. And before Enjin came along, Ethereum’s setup could lead to exorbitant transaction fees when using smart contracts. For example, when traffic on the Ethereum network is high, simple processing fees can skyrocket from a normal cost of $5 to upwards of $50.
So 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%. And this dramatic decrease in costs makes moving and trading digital items far more efficient. Enjin has created the “Enjin multiverse,” where players not only own all their assets but can carry them across games.
It’s been a big step toward interoperability between previously-closed systems.
Today, developers can use Enjin’s standard to create virtual goods easily and cost efficiently.Further, with its ecosystem, Enjin created a new paradigm for the gaming space where users can truly own their in-game assets.
It’s already being used by dozens of games. And it’s formed partnerships with companies and it’s even linked up with Microsoft to develop NFT-compatibility for the company’s hit game, Minecraft.
As of this recording, nearly 1 million digital items have been traded in Enjin’s marketplace – generating over 45 million ENJ worth of transactions. But my research team believes this is just the start as more games begin to integrate Enjin.
All it takes is one game to attract millions of users who collect and use dozens of in-game items. Look no further than successful games like Minecraft and World of Warcraft. These games have tens of millions of users, each holding dozens of in-game items. This translates to billions of in-game items for each of these games.
As mentioned above, dozens of games are currently using Enjin and many more are set to launch in the months ahead. And while the Enjin token will see big demand from minting in-game items, we believe the bulk of Enjin’s income will be generated through its marketplace.
Today, there’s a 2.5% trading fee 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. Now let’s assume the 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 ENJ token holders.
Gamers were projected to spend $50 billion last year on intangible digital items like avatars and in-game items. Adroit forecasts an annual growth rate of 22.3% for this figure into 2025.
We expect Enjin’s earnings to grow at that same rate, at the very least. In that case, Enjin should be pocketing nearly $223 million per year in revenue for ENJ token holders within the next four years.
To get a sense of what this means for Enjin’s market value, we can compare it to the likes of other major gaming companies like we did with Axie Infinity. As of right now, the average video game company trades at a P/E 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’s a 343% increase from today’s Enjin token price. So make sure you take advantage of this opportunity immediately as Enjin becomes a key cog in the metaverse.
Action to Take: Buy Enjin Coin (ENJ)Buy-up-to Price: $2. Position Size: $200–400 for smaller accounts or $500–1,000 for larger accounts. Buy It On: Coinbase, Kraken, or KuCoin
Bringing It All Together
In many ways, it sounds absolutely ridiculous – people paying millions of dollars for pixelated artwork and digital plots of land.But it’s no different than the very early stages of the internet when the smart money was snapping up domain names and launching crazy new business models. Wealthy investors and tech visionaries can already see our metaverse future, so they’re securing the very best trophy assets and properties ahead of the pack.
So this is the initial speculative phase of a burgeoning new megatrend, one built on blazingly fast mobile internet, cryptos, blockchain, virtual reality, and several other breakthrough technologies.The end result will be a rich and varied digital world that melds with our current physical one in all kinds of new ways.And by the time most people realize what’s happening, the biggest fortunes will already be made.Luckily, you should already be invested in several terrific ways to profit as the metaverse bursts into the mainstream. But if you’re not, get involved immediately.
And also put at least a small amount of money into each of the two new token plays we talked about today.They could easily hand you life-changing returns as high as 6,400% over the next year or two, and many more times that over the longer term. Because make no mistake: The metaverse is coming.