Why investors think this NFT has 100x potential | NFT Worlds

Hey guys so even though openc volume has Dropped off a bit in the last few days One project in particular has been on The rise and that project is nft worlds Which has doubled in price in just about A week to its current floor of 17e and While that’s obviously expensive the Project is about to enter a new phase With a token that some are saying could Become as big as the tokens in the Central land or sandbox even though Currently the nft world’s token is only A fraction of the market cap of those Other two now why do they think that Well because even though these other Virtual worlds are raising millions of Dollars from traditional investors nft Worlds has a secret weapon and it Happens to be this little guy minecraft Steve but we’re gonna get there in a Minute so to understand why nft worlds Is getting so hyped right now we first Have to look at the general state of Metaverse worlds in general because There are some problems that nft worlds Might be able to solve and so right off The bat we can say that for context the Metaverse business has been booming the Idea behind these platforms is that in The future we’re all going to be Spending a ton of time in virtual worlds And they’re going to be built on the Blockchain because we’re all going to be Trading and owning digital assets it

Might sound far-fetched but a lot of it Is already here today for example roblox Now has 45 million daily active users Who spent 41 billion hours on the Platform last year and people are Already spending 40 billion dollars a Year on nfts and so you already have all The pieces of the puzzle you have the Nft market and these virtual worlds and So the next step is just to combine the Two and look that still might not Convince you but it has convinced a ton Of other crypto investors and over the Past few months we’ve seen a huge run up In meta versus like decentraland and Sandbox funny enough traders piled on Almost immediately following facebook’s Rebrand to meta in late october which Sort of shows you how much these tokens Tend to be driven by hype instead of Fundamentals by the way this report Comes from jp morgan which came out and Said that the metaverse is a one Trillion dollar per year market Opportunity and so these platforms Represent a genre that we might call Virtual worlds and most of them work in A similar way first off they create a Virtual 3d environment where people can You know walk around interact with Things there’s a lot of inspiration from Traditional video games and then they Split up their world into a bunch of Little plots of land which then they

Sell off to people as nfts so these Plots can be traded and rented out you Can get loans based on their value and In many ways the economics are not that Different from traditional real estate And the idea is that the people who buy This land will hopefully build content On it that is going to attract other Users and you can build entire Businesses on it you know you can think Of all these cool ideas but up until now It’s been mostly used by mega Corporations for marketing for example Jp morgan recently opened their own plot Of land presumably with their own bank Line simulator for people who get Nostalgic for those types of things Domino’s pizza has a place where you can Order pizza in case i guess you forgot How to use google and you can even hang Out in walmart in the metaverse now so You know we have all the essentials Beyond just the land all these projects Also tend to have a token and the token Can have different forms of utility you Know it’s mostly used to actually buy Things in the world so you know avatar Skins the actual land itself and it’s Also used as a governance token for People to vote on key decisions for the Project and so if you can’t afford the Land you can buy the token and as we’ve Seen these tokens have done very well Today the tokens in decentraland and

Sandbox are each worth billions of Dollars and people are buying in because They’re speculating that in the future These games can get millions or tens of Millions of active users but of course We’re not there yet and some people Think these worlds might never get there Because for all the articles written About how the metaverse business is Booming when you look at the actual Underlying stats things don’t look that High specifically somnium space had peak Concurrent users of only 16 people last Year decentraland gets about 300 000 Monthly active users but a peak Concurrency of only 2 500 users i.e most Of its monthly user base doesn’t log in Very often sandbox reported 30 000 Monthly active users late last year but To be fair this is probably higher now That they’ve released their alpha and Crypto voxel reports that its most Popular land hit monthly total visits Below 25 000 for the entire month and if We look at how this compares to market Cap that puts sandbox at almost half a Million dollars per monthly active user Basically when you look deeply enough You can see that these worlds are Suffering a chicken and egg problem and So let’s look at a few of these issues And then we’ll go back to nft worlds and How they’re planning on solving it and So issue number one is that friction is

Still very high for new users for Example sandbox isn’t available on Consoles or as a browser game you need To actually download a specific client And with decentraland you know that is Available as a browser game but also not On consoles or mobile beyond that a Player needs to learn new controls a new User interface you know all the usual Things that come with picking up a new Game not to mention the learning curve That comes with crypto in general such As figuring out how tokens even work Setting up meta masks setting up your Exchange learning how to buy nfts etc Okay so when you ask a traditional gamer To play your game in sandbox there’s Actually all these hidden hoops that They have to jump through just to get The full experience issue number two is That these worlds don’t even have that Much content that people even want to Play you see these worlds rely on user Generated content and so decentraland Will only be as good as the sum of all The experiences that people build on top Of it and if they don’t build anything Fun then it’s just gonna end up as a Ghost town right a shell of what a Metaverse world can be and the problem Is that up until now most people don’t Even seem to be interested in building Stuff on their land in the first place In other words a lot of the land remains

Undeveloped because the people who Bought it are speculators not content Creators so they’re just trying to flip It for more money down the road and so Taking the two issues together when you Combine high friction with low fun it Makes it really hard to get a big player Base going now in comes nft worlds and Nft world started as a collection of Land plot nfts called worlds that were Given out through a free mint back in October people only had to pay gas to Get them and the big innovation that They’re bringing is that they’re using Minecraft as the base layer for their Platform if you’re not aware minecraft Is the best selling game of all time it Has over 238 million copies sold across All platforms and even though it’s over 10 years old it still gets 139 million Monthly active users as of last year now One of the reasons they chose minecraft Apart from being a very popular game is Because it has an extensive open source Ecosystem behind it so basically people Have been building on top of minecraft For years because the underlying code is All available and as a result minecraft Has more mods than maybe any other game And you can change virtually anything You want this means that nft worlds can Leverage all that work that’s already Been done they can fork you know 90 of The development to this new project and

Then just add that 10 of additional Innovation that they’re bringing okay so I do have to stress some of the benefits That comes with using minecraft because It’s a big part of the story and they Lay out some of these nicely in their White paper one a familiar set of game Controls and ways to interact with Worlds that over 100 million players Already know how to use two Cross-platform support giving players Access to nft worlds through the Minecraft game client on pc xbox Playstation nintendo switch and more Thanks to open sourced server bridging Systems three simple but powerful world Building tools through the minecraft Client world edit and a few others five As we said immediate access to a Thriving ecosystem of open source mods Configurability server infrastructure And more and 7 a thriving ecosystem of Building partners that are completely Familiar with the minecraft ecosystem And so to sum that up minecraft is going To lower the friction a lot for new Players because they already know how to Play the game they already love the game Because it’s been optimized for many Years and as you saw it’s going to be Available on many platforms including Consoles now another important aspect of Any virtual world are going to be the Builders right the people who can

Actually skillfully make experiences and In this case nft worlds can leverage an Existing community of minecraft open Source builders who have already been Doing this for a long time and so Because of this it’s not crazy to expect That they’ll be able to ship out fun Experiences faster than other competing Worlds and they’re also going to be much More customizable and you’re going to Have distinct looks across different Worlds because of the mods and that’s Going to be very different than Something like decentraland where you Have a very similar look and feel across The different plots of land and finally Each world is going to be much larger in Scale than what you find on other Platforms actually if we look at this Diagram you can see that a single nft World which is represented by this blue Section here is much bigger than both Decentraland and all of sandbox combined Okay so that’s a summary of where we’re At right now but the project is about to Enter a new phase that could be even More significant for its long-term Success you see just like how sandbox And decentraland have tokens and this is How most people get exposure to the Ecosystem nft worlds also has its own Token simply called world this is an Erc20 token and it’s going to be the Main utility and governance token

Throughout the entire project the first Airdrop of world happened in december The second one’s happening in late February and i want to show you the Tokenomics real quick because there’s One part in particular that i want to Focus on so as we see here half the Supply is being reserved for play to Earn rewards which will be distributed To players through in-game play to earn Mechanics over a target timeline of 5 Years the reason this is important is Because metaverse projects that are Going to build on top of worlds are Going to be encouraged to use the world Token and as long as they follow some Fair play policies that are laid out in The white paper they might receive world Emissions for their players in other Words the team can bootstrap other Metaverse projects by giving them a Token that their players are going to Want and over time it makes with the World token more valuable because it Becomes a base currency across all these Metaverse projects the smart contract For the token is going to be on polygon Which is a side chain of ethereum with Very low transaction fees and in the Future they’re planning on building Their own chain altogether so this would Just reduce the friction even more for Other metaverse projects that might want To use it if this all sounds a little

Familiar to you it’s because it’s a very Similar model to the one being used by Treasure and the magic token which i Covered in an earlier video that you can Check up here and so in both cases if You can make your token an essential Part of a bunch of metaverse projects Then it makes it very difficult to fork What you’ve built and this is important To remember when we get to the wrist Section in a minute anyways perhaps Because of this token program we’ve seen A ton of profile pick collections by a World for their community if we look at This list we can see some familiar names Such as artifact aka nike the doge pound Axle littles crypto dads and even light Button daos getting in on the action Which by the way anyone can join all you Have to do is hit the like button you Know you get a dopamine hit and return Highly recommend and so i expect more of These collections to jump in and by the Way nft world has a much smaller Collection size than other projects it Has only 10 000 supply whereas sandbox Has 166 000 plots of land and the Central land has 90 000 okay cool now Let’s round all of this off with a Couple of risks that you should keep in Mind risk number one is that even though The minecraft code has been used for a Bunch of open source projects nft worlds Doesn’t actually have the full license

Or permission from microsoft to Commercialize things the way that they Are in their own words on discord they Say we don’t have the green light but Microsoft is watching and they would Prefer to have us do this rather than Someone else that wouldn’t quote play by The rules and they’ve also said we are In contact with microsoft’s ip Department and we regularly chat so First you have to have faith that They’re telling the truth about this and I have no reason to suspect that they’re Lying and so let’s just grant them that Assumption for now but even if they are Telling the truth you also have to have Faith that microsoft isn’t going to Change their mind down the road shut Everything down because of some unknown Bureaucratic decision now you can say That microsoft has been hands off on Community projects in the past but this Is no doubt gonna be the most high Profile one it’s gonna be the one that Maybe makes the most money and so this Is gonna put some pressure on some Random vps at microsoft to make a public Decision one way or another now i’m not Saying that this is likely but i’m sure Even the founders would agree that There’s a non-zero chance of that Happening and so that’s an existential Risk that you should 100 consider the Silver lining here is that if they are

Actually in talks with microsoft then There’s also a non-zero chance that this Whole thing just gets acquired by Microsoft down the road it makes sense As a metaverse play for them because They’re basically being served a Community on a platter that can compete With the likes of sandbox or Decentraland i think after nike acquired Artifact this type of scenario is now Way more plausible okay risk number two Is that it seems like a lot of this Technology that’s in place can just be Forked by another team remember this Whole thing started in september it Hasn’t been in development for years Like the sandbox and so you know Leveraging open source technology means You can ship things faster but i think It also makes you more vulnerable for Other teams that might do the same Personally i love the idea of a Minecraft metaverse i think we’d all Agree that that sounds like a winning Concept but what you have to do here is Separate that concept from investing in Nft worlds as the vehicle for bringing That idea to life if you’ve been around The nft space long enough you know that When somebody comes up with a good idea It gets copied like a thousand times Immediately and so what if somebody Brings out a minecraft clone that has 40 000 worlds or no scarcity in land at all

And so anybody that wants to create a Game doesn’t have any friction or Startup costs and that might let it Scale a lot faster to me this all hinges On whether or not they can convince Other projects to use the world token Because nft worlds does have a Competitive advantage as the first mover And so if they can get their token Embedded in all these other popular Games then that can give him a moat that Would ward off competition because it’s Much harder to fork a network than the Technology itself alright guys hope that Gave you a balanced understanding of the Project this is just scratching the Surface of course do your own research Thanks for watching and i’ll catch you At the next video