How to Invest in the Metaverse and the DAO That’s Building the BlackRock For Crypto

The Metaverse is giving regular people a chance to invest in its future. But there's a problem. It's too hard and time-consuming to figure out which projects to invest in. This company is trying to solve the problem by building index funds for the crypto economy.

Maybe you’ve heard the term Metaverse and were wondering how to invest in it.

After all, there are hundreds of projects launching every week. So how do you know which one to pick?

The Metaverse Index ($MVI) is designed to capture the upside in the Metaverse ecosystem.

Let’s dig in.

What’s the Metaverse index?

It’s a financial product (like an ETF, but for crypto) that owns tokens tied to Metaverse projects. Currently, there are fifteen tokens in the index.

Here are a few:

View the other eleven tokens here.

How are tokens selected?

  • The token must be available on Ethereum.
  • The token has to fall into one of these categories on Coingecko: NFTs (Non-Fungible Tokens), entertainment, virtual reality, augmented reality, or music.
  • The protocol must have at least three months of operating history. And its token must have at least three months of price and liquidity history.

You can read about the other criteria here.

How to buy the Metaverse index ($MVI)

Two ways:

  1. You can buy the token directly on its website.
  2. You can import and buy the token through Uniswap.

Who is behind the Metaverse index?

A cooperative called the Index Coop (Coop is short for Cooperative).

The Index Coop is a DAO (Decentralized Autonomous Organization) governed by the $INDEX token.

What is the $INDEX token, and what can you use it for?

  • It’s a governance token that oversees the Index Cooperative.
  • You can use to token to vote against for or against proposals.
  • The token could be used as a long-term investment as each token represents a share of Index Coop’s future revenues. Think of Index Coop this way: They’re like BlackRock (owns iShares) or Vanguard, but for crypto.

How Index Coop makes money

Index Coop makes money by charging fees (it calls them streaming fees) on its crypto products. Here’s its latest financial report.

The highlights:

  • FY 2021 revenues: $2.6 million.
  • TVL (total value locked): $316.5 million. TVL is the sum of assets deposited in a decentralized protocol. I think of TVL as crypto’s version of AUM (assets under management).
  • Revenue growth since Q3: 49%.
  • Total unique wallet addresses: 25,630.
  • Community treasury: $78.39 million.

Besides the Metaverse index, Index Coop has other products

  • DeFi Pulse Index ($DPI)—Tracks the performance of decentralized financial assets like the Compound protocol.
  • Bankless BED Index ($BED)—An equal-weighted index of Bitcoin, Ethereum, and $DPI. It’s a passive way to get exposure to the most promising use cases and themes in crypto: store of value, programable money, and decentralized finance.
  • Two leveraged products (similar to leveraged ETFs). One for bitcoin ($BTCFLI) and one for Ethereum ($ETHFLI).
  • Data Economy Index ($DATA)—Tracks database products and services like Chainlink.

To conclude

The Index Coop is a fascinating experiment in pushing the boundaries of what’s possible with DAOs and crypto products. I’m pumped to see how this plays out.

I’m also buying the $INDEX token as soon as I can find a time where the gas fees won’t kill me😆

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