The gaming and metaverse hype train is showing no signs of slowing down. In fact, you could say it’s only just left the station, with everyone from Meta, Microsoft, to JP Morgan jumping aboard!
Unless you want to find yourself stranded without any exposure, now’s the perfect time to start building a well-rounded, fully optimized gaming and metaverse portfolio.
Don’t think you need it? Already got one? If so, it’s time to reassess, to ensure you’re striking that sweet spot between maximum upside potential and minimum downside risk.
And that’s exactly what we’ve got coming up: Ran and Hustle will be sitting down to dive into what might just be the best, most comprehensive gaming and metaverse portfolio around – one that encompasses a wide range of different plays to ensure 360-degree exposure to the key narratives likely to explode when the market finally wakes up.
It’s called the Gaming/Metaverse Junkie portfolio.
Spoiler alert: with over 20 token picks, only a handful refer to any specific, individual games!
- Balancing risk/reward is key.
- Ensure exposure to the key narratives.
- Be strategically diversified.
Just check out this chart:
Messari knows its stuff, and this image captures the whole infrastructure “stack” that goes into realizing gaming and metaverse: from Layer-1s to launchpads, to the individual games that the user ends up playing – the final product, if you will.
Designing a winning portfolio means gaining exposure to the entire range. Narratives move in cycles, so ensuring a good spread means covering all your bases, or risk missing out.
Layer-1 (and Layer-2) infrastructure
The first port of call. There is no crypto gaming (or metaverse) without a blockchain for it to run on, so every portfolio should begin with a selection of Layer-1s (and Layer-2s). And as we’ve said many times, given the insatiable demand for processing power, these are the safest bets for any crypto investor, gaming-centric or otherwise. User activity drives value. If you’re bullish on blockchain gaming, you’re automatically bullish on the blockchains themselves.
NFTs and marketplaces
You don’t need to invest in NFTs to profit from them. Protocols that facilitate the swapping, tokenization or interoperability of in-game assets should be on your radar too. That way, you’re not banking on an individual asset, but rather the infrastructure which gives them a real-world use-case!
Following on from the previous point: Why pile into a single game when you can strategically hedge your bets by investing in the studios bringing them to players all over the world? Each game has a high risk of failure, but a studio only needs one massive hit to see its value soar.
Getting games made is one thing, getting them out there is another. For anyone familiar with mainstream video games, you’ll understand the key role distributors play in bridging the gap between developers and players. Investing in promising distribution platforms is a bit like investing in a studio, since the result is a kind of gaming ETF: access and exposure to a basket of projects under its umbrella.
Short of buying land plots, the next best way to benefit from the metaverse hype is to own a piece of the pie: Right now, there are a few clear “winners” with a serious first-mover advantage. Sure it makes sense to add some exposure to those metaverses, but it’s also important to look farther afield, and spot the next promising metaverse that hasn’t yet seen its marketcap explode. Pick a select few, and allocate according to your risk tolerance. The up-and-comers may never surpass the main players, but if they do, the upside potential is immense.
When a game moons, it moons, but the kinds of insane runs we all dream of have happened in a few instances: for now, the majority are speculative bets based on future potential and not current user activity. That’s why you shouldn’t be overweight in individual gaming tokens. The risk/reward ratio is incredibly high. Pick a few that you believe in, know the project, roadmap, leadership, and tokenomics inside out before putting your chips down, and never go all in. These higher-risk plays should represent a small allocation of capital. If they win, you win big. If they lose, any losses should easily be absorbed by a well-rounded portfolio.
Bullish on gaming, bullish on guilds. Period. Guilds unlock the potential of gaming economies in play-to-earn platforms. They do this by bridging the divide between players and game-asset owners through a DAO economy. Both parties then reap the benefits of a joint enterprise. While gaming conventional guilds were all about in-game communities, the next generation of crypto gaming guilds will make play-to-earn a reality for potentially millions of gamers worldwide. For a deep dive as to why they are so important, check out our article here.
So, think you know your stuff?
If so, you may have an idea of what tokens Ran and Hustle went through in their Gaming/Metaverse Junkie portfolio, but a few of them might surprise you. This show was jam-packed with alpha and wisdom. Watch it here.