Investments in Web3, What’s Next?

Web3, the next generation of the Internet, is conquering the world slowly step by step. The term “Web3” is relatively new ― it was coined by the Ethereum co-founder and a famous computer scientist Gavin Wood in 2014. However, the stack of technologies behind Web3 began to be developed earlier. Bitcoin, the most renowned cryptocurrency in the world, came into use in 2009. 

In a decade Bitcoin turned into a synonym for investing in Web3 in the eyes of the mass audience because in general people didn’t know much about Web3. Gradually, some other cryptocurrencies gained considerable attention too and the market became more diverse and similar to the market of traditional currencies. 

The NFT craze of 2020-2021 became the next big thing related to Web3 investments. Everybody wanted to have a say about it. Celebrities, like Paris Hilton and Grimes, were jumping on the hype train and created their own non-fungible tokens for sale. The most expensive NFT sold to a single owner was and still is Beeple’s The First 500 Days, it was auctioned at Christie’s and the price reached $69 million.

Today, however, we are experiencing a crypto winter (the bear market of the crypto space): Bitcoin’s evaluation went down dramatically, the NFT boom faded away quite significantly and the FTX exchange collapsed. That being said, Web3 still has a lot of prospects for investments. Some aspects of the Web3 market may look dull now but it should not become a reason for you to abandon it completely. 

Investing into the Web3 Ecosystem

Cryptocurrencies and NFTs are only a couple of pieces of the Web3 puzzle, there are many more things to explore and invest into. The most important technology behind Web3 is blockchain which is the foundation of the Web3 decentralized system. As a database, it records and stores information in blocks, so that all transactions within the network are verified and kept transparently and on various computers which guarantees that they can’t be manipulated at discretion.

Currently there are a lot of startups powered by blockchain that work on the Web3 ecosystem. These projects exist in different niches ― the Internet of Things, AdTech, gaming, e-commerce, hardware, etc. Recently TechCrunch has launched Web3 Tracker where data about Web3 startups is collected and now it contains more than 16,981 companies. If you ever dreamt of becoming a venture capitalist, consider these companies.

There are, of course, people who prefer buying stocks to funding startups. They also have a lot of options to invest since there are Web3 companies that went public already or businesses that have been publick for a long time and support the Web3 ecosystem. For instance, the cryptocurrencies exchange Binance or the software development legends Nvidia and Unity.

Web3 Fintech

In the light of the recent events on the crypto market with some cryptocurrencies crumbling down and the crypto exchange FTX collapse, Web3 FinTech might have started to look like a questionable choice for an investor. However, if you used to invest into crypto currencies, you still can do it ― this option has always been highly risky, so, in fact, very little has changed. 

Yet still, probably, now it’s wiser to bet on the cryptocurrencies that are strongly important for the Web3 infrastructure. If you like this idea, choose something like Ethereum, Polygon, Polkadot, Helium, etc. Also there are Web3 financial products that still do good, one can invest in some of them simply by acquiring their stocks. If you prefer this option, turn your attention to Coinbase, Juno, Robinhood, Kira, FalconX and similar projects.

Keep in mind that this is not the first crypto winter, the previous one started in 2018 and lasted until 2020. Crypto winters are tough but, just like the bear market in the traditional financial space, they help to get rid of the weaker players and enhance the strong ones. If you approach it wisely, you may win big.

A Broader View on NFTs

Mostly NFTs are associated with the digital art market because initially they were used to trade pieces of digital art. However, as a tool to verify authorship and ownership of digital assets, NFTs can find much broader application. 

For instance, one can use NFTs as a means to sell physical objects. In this case a token may represent a real estate object, a car, a marble statue, a book ― basically, anything legal. The main advantage of NFTs is that they make transactions easier and faster which is the reason many see non-fungible tokens as the future of ownership. 

Also NFTs are still an awesome way to buy art and participate in the creative economy. However, now it’s important to decide on your purchases in a more thoughtful way. On the other hand, if you like some artist deeply, you may simply want to support them by buying their NFTs without thinking too hard whether it is a solid investment or not. 

Investing into the Metaverse

The Metaverse may not be associated with Web3 for many people but, in fact, it’s supposed that the Metaverse will stand on the technologies utilized by Web3. In general, an average person sees the Metaverse as something linked to Facebook with Mark Zuckerberg’s company being a vivid example of a Web2 tech corporation which harvests user data to sell it. In reality, the Metaverse doesn’t belong to Zuckerberg and is being created by many different people and enterprises.

If you want to invest in Web3, the Metaverse can provide you with good opportunities to do so. There are companies that basically create the Metaverse (Metahero, Gala, Sensorium Galaxy, etc.), artists who sell NFTs situated within the Metaverse, startups which are building the Metaverse-related products to make life within cyberspace resemble the real world. 

Web3 is still in works but it already provides a lot of opportunities for investors. Especially for those who do it not only for money but also out of desire to impact the future. The disruptive potential of Web3 makes it an especially interesting direction to look at. The awesome thing about Web3 is that everybody can choose a way to invest in it according to their personal financial situation and the level of risk tolerance.

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.

Vitaly Gerko

Vitaly Gerko, a CPO and Co-founder of OTM, a technological programmatic platform acquired in 2021 by VEON Ltd, global digital operator. Vitaly has over 15 years of experience in AdTech and MarTech industries, leading development of tech products. Solar expertise in product management, unit economy, and paid marketing which resulted in 5+ years journey in startup mentoring and investing. During his career at Adtech, Vitaly worked with top BigTech platforms like Google, META, and Amazon Ads. Limited Partner at the True Global Ventures fund (Web3 technologies, crypto and blockchain projects).

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