TL;DR Breakdown
- As the world advances towards Industry 4.0, the idea of a metaverse is being actualized.
- Games have a revenue model that generates 175.8 billion USD from selling digital assets.
The current metaverse revenue models
As the world advances towards Industry 4.0, the idea of a metaverse is being actualized. The Metaverse is aimed at creating a digital world but also causes fundamental changes in the internet as a whole. The Metaverse as a business model is not fully developed, leave alone the revenue models. This is a result of the rapid growth of the fictional world and how fast it is diversifying.
Currently, video games have a revenue model that generates 175.8 billion USD from selling digital assets. According to William Quigley, the co-founder of Tether (USDT), the amount could be higher in the Metaverse as this amount is generated by video games only. Tether is a cryptocurrency classified as a stablecoin since it has pegged its value to the US dollar’s fiat currency. Quigley explains that with the use of NFTs, the amount could rise North of 10 Trillion!
NFTs will be the revenue model for metaverse
Incorporating NFTs in the revenue model for the Metaverse will bring about radical changes that are mostly positive. This is because of the rapid growth of NFT markets. Referring to an article by Forbes, NFTs hae recorded a surge of 1785% in 2021. The value of NFTs is dependent on the value of Ethereum, which has also been on a spike. The research shows that the future of NFTs in different sectors of the economy is promising. Are they to be used in the metaverse revenue model, they will be capable of positive change.
William Quigley is also the co-founder of Worldwide Asset eXchange (WAX), a carbon-neutral blockchain that deals with the creation and development of NFTs. William says that NFTs will revolutionize the revenue model of the Metaverse. Apart from increasing the amount to be generated, NFTs could be diversified to fit various business sectors due to their qualities. WAX aims to create new digital collectables to increase the variety of digital assets available and increase the niche available for different creators.
According to William Quigley in an article on Bloomberg, it isn’t easy to approximate or analyze the cryptocurrency market’s future concerning NFTs. However, he is optimistic because Cryptopunks had reached the $1 billion mark in August. 40% of the amount was raised between the 21st and 28th of August. The data is quite promising since it shows fast growth of the market.
The Crypto veteran in association with WAX has come up intending to develop NFTs and reach more investors. He plans to develop NFTs that are more affordable to increase the market share of the tokens. He says he is unhappy when one NFT goes for 1 million dollars and would rather have a million NFTs going for a dollar each. This is because more people will have had access to the tokens for that to happen.
Incorporating NFTs into the revenue model of Metaverse is advantageous to both investors and developers. When the goal is achieved, there will be tremendous development in the digital world.
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