Many people are looking to invest in Web3, even during a bear market, but knowing where to look for long term fundamentals can be difficult.
This post will outline a few ways to research and discover some of the best investment opportunities in the up and coming web3 space.
What is Web3?
Web3 refers to the next generation of internet products which prioritize decentralization, increased user ownership, cryptocurrencies, and crowdsourced projects or DAOs. It can also refer to NFT style products that offer a PFP, community access, or some other benefit from limited supply and scarcity.
Much of this infrastructure runs on DeFi (decentralized finance), dapps (decentralized applications), or attempts to recreate web2 services and websites with the aforementioned features.
Web3 Gaming & Metaverse
Castle Crypto has recommended NFT and crypto based blockchain games from its inception. Gaming is a massive entertainment market that might be disrupted by new forms of asset ownership and tokenized distribution of control.
Some people describe this new gaming environment as “the metaverse,” indicating that the decentralized worlds might be interoperable and could allow you to have the same gamer identity across multiple games or worlds via an NFT.
We recommend signing up for a Gemini account to gain access to the best blue chip tokens such as The Sandbox Game, purchasable with USD.
The Sandbox is the leading web3 metaverse game and has raised an enormous amount of capital to build the universe.
ENS and Unstoppable Domains
New web3 domains such as ENS and Unstoppable which have the extension .eth, .crypto, .wallet, or a number of other tlds are now available for purchase.
These domains allow you to route crypto payments, build websites or dapps, log in using “sign in with Ethereum” and more decentralized features.
There is huge opportunity here especially in Unstoppable Domains since they have no expiration and the first person that registers owns the domain forever unless they sell it.
ENS also has a DAO governance token that you can purchase which many members of the community could value over time.
Uniswap and 1Inch Dex (Decentralized Exchange)
It's important to try and figure out which services could replace legacy finance or major exchanges in the coming years. The biggest known example doing incredible amounts of trading volume is Uniswap. Another competitor DEX is 1inch Exchange.
Like ENS, Uniswap and 1Inch have a DAO governance token that you can invest in if you believe the service and functionality could be a major player long term.
Although there may be some opportunity to make stock market investments in web3, you are likely to achieve better performance on the underlying crypto assets.
That said, Coinbase may be a good long term bet considering they just added an NFT exchange.
Another web3 company is Block, spearheaded by Jack Dorsey. Originally they have said their focus is Bitcoin, but long term they could eventually pivot to Ethereum or other blockchains.
As of right now, there are likely not any good web3 ETFs worth recommending.
Between gaming, metaverses, decentralized domains, and decentralized exchanges, you can make some investment decisions based on fundamentals. Always do your own research!