The true ownership of virtual assets — why NFTs are the core of the metaverse

Do you know the fundamental difference between the LINE dynamic stickers you purchased and NFT artworks? The former costs 60 yuan just to rent server space from a gaming company; once the platform removes them, they disappear without a trace. The latter is a true digital asset that belongs to you, which can be traded and used in any world that supports blockchain. This difference determines whether your investment in the metaverse can truly be profitable.

What is the Metaverse? Why is it Worth Paying Attention To

The concept of the metaverse originates from the 1992 science fiction novel “Snow Crash,” depicting a virtual space parallel to the real world. Today, the metaverse we discuss has evolved into a tangible virtual world—people work, socialize, shop, and entertain here, all supported by blockchain and NFT technology.

Venture capitalist Matthew Ball once summarized: “The metaverse represents the fourth wave of computing after mainframe, personal computing, and mobile computing.” This is not hype but a prediction of a new era.

How NFTs Are Redefining the Rules of Virtual Assets

To understand the metaverse, you must first understand NFTs. NFTs (non-fungible tokens) are blockchain-based digital assets, essentially serving as “ownership certificates” in the virtual world.

What issues do traditional virtual assets have?

• Buying game items but unable to resell → value locked on servers
• Designing virtual clothes but only wearable by oneself → commercial value suppressed
• Hard-earned virtual houses can be deleted by platforms at any time → assets may become worthless

NFTs solve these pain points. Through the immutable nature of blockchain, each NFT has a unique proof of ownership that can be freely traded across multiple markets. Creators’ copyrights can also be managed via smart contracts.

Simply put: traditional virtual assets are rental relationships, NFTs are ownership relationships.

The Craze and Reality of Metaverse Projects in the Last Bull Market

During the 2021 bull market, Decentraland and The Sandbox sparked a virtual real estate frenzy. The MANA token surged an astonishing 4,100%, far outperforming Bitcoin’s performance during the same period; The Sandbox’s virtual land prices soared from 1,000 to 45,000, surpassing the price increase of Taipei real estate.

This wave attracted a large influx of capital into the entire crypto market, and metaverse-related projects were in the spotlight.

However, as the crypto market peaked and declined, the reality became harsh. The floor prices of The Sandbox and Decentraland continued to hit new lows, with 50% or more drops becoming common. Many niche projects even faced the awkward situation of no trading activity and complete illiquidity.

What does this tell us? Market enthusiasm determines liquidity. When the market cools, air projects are the first to collapse, while leading projects, though also adjusting significantly, still maintain some trading activity.

How to Participate in the Metaverse? Practical Guide

For ordinary investors, buying and trading NFTs is the simplest way to participate. Here is the complete process:

Step 1: Choose a trading platform
OpenSea is currently the most mainstream NFT marketplace, aggregating NFT assets across major blockchains.

Step 2: Set up a digital wallet
Download MetaMask (the fox wallet), which is essential for interacting with NFT platforms. Log in to the OpenSea official website, click “Connect Wallet,” and follow the prompts to create an account (no fee required).

Step 3: Purchase cryptocurrency
Buy Ethereum (ETH) through exchanges like OKX, Binance, etc., then transfer it into your digital wallet. This is a prerequisite for any NFT transaction.

Step 4: Buy NFTs
Browse promising NFT projects on OpenSea and complete the purchase step-by-step. If you think the floor price is too high, you can participate in auctions, potentially buying below market price, but this requires market sense.

Step 5: Sell NFTs
Go to your profile, find your NFT, and select “List Item.” You can choose to list directly or participate in auctions. Set the price and duration, then list. Once sold, you will receive cryptocurrency proceeds.

Three Essential Security Tips

• Never input your private key on unfamiliar platforms
  Your private key is equivalent to a bank password; exposure means total asset loss.

• Do not use the same password for multiple metaverse accounts
  A breach on one platform could lead to chain failures.

• Do not trust “guaranteed profit” NFT airdrop ads
  These are almost always scam project tactics.

Practical Advice for Beginner Investors

The biggest challenge in metaverse investing is low liquidity. Most projects face insufficient trading volume and difficulty in transactions. Therefore, small-scale testing is the wisest approach.

Another risk is the proliferation of scam projects. Many projects claiming to be “metaverse” are essentially air, with no real application, relying solely on market hype. Once enthusiasm fades, prices plummet sharply. If you don’t understand a project well, it’s best to stay away.

Compare metaverse/NFT with other investment methods:

Long-term Outlook of the Metaverse

Technologically, virtual reality and artificial intelligence will become the core drivers of the metaverse. Economically, the share and influence of virtual economies will continue to expand, with new business models and industrial chains likely to be realized.

Tech giants like Meta, Microsoft, and Google’s ongoing investments prove that the metaverse is not a fleeting hype but a long-term industry trend. In the future, relevant laws and regulations will gradually improve, lowering investment barriers and reducing bad actors.

In short, the metaverse has the potential to truly change people’s lifestyles, social interactions, and economic models. As the foundational technology for realizing this vision, NFTs will become increasingly recognized for their importance.

Common Questions and Answers

Are the metaverse and NFTs scams?
While scam risks can never be completely eliminated, mainstream and well-known metaverse projects will not abandon real-world applications. Pure marketing scams often lack a sustained user base.

How risky is metaverse investment?
All investments carry risks. If you participate in cheap projects that are essentially air, the risk is high. But since NFT investments do not involve leverage, as long as you maintain trading discipline and ensure liquidity, you can freely enter and exit.

The key is simple: Understand the projects you invest in, only invest what you can afford to lose, and don’t let short-term volatility control you.