CoinGecko is hosting its first-ever conference this week. ‘GeckoCon – NFTs Gone Wild’ is taking place on 17th to 19th November 2021 from 8 AM to 2 PM EST. This session is about the Metaverse.
It's Day 2 of #GeckoCon! 🦎
Over the course of three days, we are celebrating the world of #NFTs with a lineup of 200 thought leaders as well as various activities and performances for you to enjoy.
Today we're exploring the world of NFT games, music and collectibles! 🎉 pic.twitter.com/kXQ8Vu2DHY
— CoinGecko (@coingecko) November 18, 2021
AltcoinBuzz is a partner with CoinGecko for this conference. We are covering topics live from GeckoCon. In this article, we cover a session from day two: “Investing in the Metaverse”
The speakers at this session are:
- Anton Tarasov, Moderator – Head of Research at Crypto Briefing
- Ben Lakoff – Co-founder, Business Lead at Charged Particles
- Artem “AG” Gramma – Methodologist – Metaverse Index at Index Coop
- TN Lee – CEO at Pendle
How to evaluate the value of Metaverse?
Anton Tarasov asked a question to the others speakers: ”Is there a matrix that we can apply to evaluate the Metaverse item’s value”?
Ben Lakoff answered: “Short answer is no. I think that there’s a lot of price discovery right now. We used to apply models and frameworks from things that we understand to new things that we don’t understand. But that doesn’t always work with something like this”.
TN Lee agreed that there is no good way or a simple matrix or method to price an asset in the Metaverse. He believes that DeFi is going to be an economic backbone to facilitate value transfers and be an essential part of the entire digital economy.
Artem Gramma disagrees with the statement that there is no way to value Metaverse items. He stated: “There are some assets that you can actually value. With Collections and NFTs, where value comes from, social value or the status value of an item, it is really hard to value. With in-game items that are generating a cash flow it actually becomes relatively easy to value. You just need to look at the income that is being generated”.
Anton Tarasov said that Metaverse items that provide some sort of utility have at least a minimal fair value attached to them. It is because they are producing some value.
Are we in a Metaverse bubble?
Ben Lakoff said: “I’m fundamentally massively bullish on NFTs as an asset class. People can easily understand what it is. More and more sports teams, celebrities, and musicians will be launching them. Everybody will own NFTs. That doesn’t mean that every NFT out there has value. In the NFT market, there are a lot of overvalued things and trash”.
TN Lee agreed that there are a lot of overvalued things. He also said: “If you look the entire idea of Metaverse, it actually comprises of a lot of different things piece together. If we look at it from the big picture I think we’re just getting started. It is going to take the entire decade to develop into something meaningful”.
Artem Gramma and Anton Tarasov also think that we are very early in the development of the Metaverse.
What are the red flags for people that are investing in Metaverse?
Artem Gramma stated that when investing in Metaverse the most important thing is to look at is the team. He advises investors to look for team reputation and track record. It does not necessarily mean an anonymous team is a red flag. Right now most teams are not anonymous.
TN Lee agreed that the team is very important thing to look at when investing. Also, he stated that from his personal experience he also would look at the association and how the team generally grows the community.
Anton Tarasov says when investing, you should look at the roadmap. If it has a lot of promises, they likely will not materialize. And you need to avoid that project.
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