Follow me into the wealth management metaverse…

You are in the desert. It’s empty, no one is there. But you’ve heard that the biggest tycoons in the world are planning to take this empty place – the locals call it “Las Vegas” – and build huge casinos there. You are the first financial advisor in this desert. What should you do?

Our modern Vegas is the Metaverse. The greatest tycoons in the world are piling up. Right now it’s mostly empty space. But wealth managers can position themselves at present win big when this Metaverse is full of buyers.

What is the Metaverse, anyway?

Just like the Internet itself, the metaverse is a virtual environment. Just like on the Internet, people can communicate with each other and share information. And as in a video game, users are represented by an avatar. With enhanced VR and AR
AR
technology, the Metaverse promises a more connected, immersive experience.

Yes, but where is my office?

When Steve Wynn bought his plots in the 1960s, he mostly bought empty spaces. Time and investment have increased the value of his assets to billions of dollars. At the Metaverse, 2021 has seen virtual real estate sales surpassed $500 million.

For example, real estate company Metaverse Republic Realm recently made the biggest purchase of virtual land in history for $4.3 million. The plot lies in Sandbox, a virtual world similar to Roblox and Minecraft, where Gucci also caught certain real estate. At Decentraland
MANA
another virtual world, fashion designer Philipp Plein bought a property for $1.4 million, on which he plans to build “luxury boutiques, entertainment, an art museum, a hotel and luxury residences”.

Are these madness or real investments? Honestly, it’s hard to say. But, as the Metaverse becomes more popular, the value and demand for its real estate will increase. When it comes to financial advice, just keep an eye on virtual real estate to position yourself ahead of the pack.

How to prospect on the Metaverse?

Even without VR, users are already hanging out in virtual worlds.

Meet Discord servers: virtual spaces where people can meet to chat. It’s a combination of a Slack channel, a voice chat room, and a way to co-watch shows or play multiplayer games. This is where the tribe meets.

Already, many active servers are set up to discuss investing, but the list is dominated by crypto and trading enthusiasts. Building a Discord server is an amazing opportunity for Wealth Managers to help their clients engage with the Metaverse.

And how to sign a contract?

The blockchain and the metaverse go together like a horse and a carriage. Transactions on the Metaverse will be powered by smart contracts, which are contracts written in code. When the terms of a smart contract are met, the contract automatically executes the terms of the agreement. This can range from transferring money to transferring ownership of an asset.

If you’re still not convinced, I understand. When Crypto Enthusiasts told me in 2015 that HNW clients are well advised to keep 5% of their wallet in Bitcoin
BTC
– many advisers thought it was crazy too. The price of bitcoin was then around $300. Today, while trading at its lowest point of a year ago, it is worth more than $30,000.

I’m heading to the Metaverse, and I’ll see you when you get there!

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