The Metaverse has been a trending topic in the news lately. It’s a term for a virtual universe coined by Meta, the company formerly known as Facebook. Meta isn’t the only company stepping into the metaverse though — Microsoft, Nike, Nvidia, and Roblox to name a few. As VR and blockchain technologies evolve, more companies will enter the metaverse. Just today, SoftBank and the investors behind the K-pop sensation BTS have backed a $1 billion metaverse platform that provides high fashion products like Gucci for digital avatars.
The platform is called Zepeto, and it allows users to construct their own worlds in which they can explore new environments, socialize, and play games. Users can also purchase virtual items or create and sell their own to earn money. If this sounds familiar, you’re probably thinking of NFTs.
You’ll need to look good in your virtual world, so Gucci has developed a virtual environment where users can dress their avatars. Digital fashion helps users express themselves and is a great way to bring in revenue. Softbank thinks so too, and they’ve invested $150 million in Zepeto, betting on the platform to become the world’s largest virtual fashion marketplace.
The Metaverse is becoming more mainstream by the day and investors are dumping millions of dollars into the industry. Softbank also invested about $100 million in Sandbox in early November, a metaverse platform where one user purchased a $650,000 digital yacht and virtual land sales are skyrocketing.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.