Earlier this month, we put out a massive article about the metaverse. This included details about different categories within this new niche. We also discussed the obscurity of the industry during these early stages. Everything from clothing companies like Nike (NYSE: NKE) to virtual technology companies like Roblox (NASDAQ: RBLX) have a place within this new world.
Right now, metaverse stocks are some of the hottest in the market. While broader sectors remain in recovery mode, emerging trends like this remain a core focus for early adopters. You’ve got the Microsofts (NASDAQ: MSFT) and Palantirs (NYSE: PLTR) of the world gaining mass appeal, of course. Where does that leave penny stocks?
In my opinion, the metaverse is one of the most exciting places to find smaller companies working nimbly to achieve a more significant market share. This article will discuss a few companies that have gotten involved with the metaverse and gained momentum this quarter.
Alpha Esports Tech
Alpha Esports Tech is one of the most recent entrants into the metaverse arena (no pun intended). While the company has already had much of the framework that could suggest a metaverse model, the latest headlines from the company have solidified its position in the virtual landscape.
This month the company announced its Paradise City Gaming subsidiary began developing metaverse technologies. These are augmented reality-based experiences that will utilize the same technology used to create Pokemon Go. According to Alpha, Paradise will begin development and encourage its users to participate in real-world challenges to earn NFT rewards and Alpha Coins (Alpha’s bitcoin pegged utility token).
CEO of Alpha, Matthew Schmidt, explained, “We believe esports and mobile gaming will be one of the first integrations into the Metaverse, and it is important to stay ahead of the competition. Paradise City will continue to work on Metaverse technologies and integrations within the Alpha ecosystem, including products which drive user engagement and monetization for the Company.”
This news comes shortly after Alpha acquired Heavy Chips helping it gain footing in the budding sports betting and online casino industries. Heavy Chips has over 250,000 users, adding to Alpha’s continuously growing esports gaming platform userbase via the GamerzArena product. With this new directive into the metaverse, Alpha has been one of the penny stocks to watch this month for some.
Shares of Meta Materials may be pulling back in November, but that hasn’t taken away from interest in the market focused on the company’s metaverse play. Originally looked upon as a green energy company, traders have quickly directed Meta’s platform even further.
At the heart of it all, the company specializes in functional materials. These include conductive films and optical components. It’s the latter that has become a much larger attention-grabber for traders recently.
Meta’s ARfusion for Smart Augments Reality Eyewear, in particular, has come into focus. The platform provides wearable augmented reality technology in a lightweight format such as glasses.
This week the company announced that it is exhibiting at two large tradeshows next month and in January. These include FLIMTECH Japan and CES Las Vegas. With the onset of all of the excitement surrounding metaverse tech, including hardware, Meta Materials has begun billing itself as one of the penny stocks to watch right now.
We rarely discuss many OTC penny stocks due to lower liquidity. However, Tokens. com has done something within the metaverse that has become a massive point of focus. The company, specifically, is more of an incubator or investment company. It focuses on crypto-assets and non-fungible tokens. The company also invests in land, but not physical acreage. Tokens. com focuses on metaverse real estate.
One of the more popular “locations” when it comes to metaverse ecosystems is Decentraland. If you’re looking for popular cryptocurrencies to buy, you likely heard about MANA. This is the Ethereum token that powers the Decentraland virtual reality platform. It can be used to purchase virtual plots of land in Decentraland and pay for in-world goods and services. How does this play into recent catalysts for Tokens. com?
The company’s subsidiary, Metaverse Group, purchases a 116 parcel estate in the “Fashion Street” district of Decentraland. What was the purchase price? According to a November 23 update, the company spent 618,000 MANA on this acquisition. With the cost of MANA going for roughly $4 on November 23, that valued the transaction at around $2.47 million.
According to the company, “Through Metaverse Group, Tokens.com will be further developing Fashion Street and bringing new opportunities for fashion brands to showcase new digital merchandise in the metaverse.”
This is a very new and exciting arena to dissect right now. The metaverse itself is nothing brand new to the world. But it is something that hasn’t been as mainstream as it is right now. Thanks to companies like Facebook, now Meta Platforms (NASDAQ: FB) breaking barriers this year, it makes sense why so many investors and companies are diving into the space.
Whether it’s cryptocurrencies, decentralized finance (DeFi), NFTs, virtual land, or other digital assets, there’s a lot to account for in the metaverse. This also doesn’t include all of the supporting services and hardware necessary to expand this virtual world.
This is a very new industry. Therefore, volatility is something to be prepared for. Many of these companies have existing business models (IE. Nike). But the metaverse angle could breed some speculation when it comes to their stocks. Whichever the case, doing as much research as possible is the best way to start before deciding to invest in penny stocks.
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Read More: Metaverse Penny Stocks To Watch In 2021