Metaverse has become a reality, and is set to transform the way we surf the internet and play video games pretty soon. After Facebook renamed itself to Meta, the race to develop in virtual reality started, and companies around the globe are developing more money than ever before to win the race of metaverse. The Metaverse Index is a feature built to help every user access the platform through multiple channels, rather than just one token.
Meraverse Index or MVI aims to follow the latest developments in various fields based on the latest advancements in Blockchain and NFTs. In this article, we will discuss the Metaverse Index in detail, and will try to explain a few of its important features. You will also learn how to buy metaverse index tokens and use them for the betterment of the platform.
Introduction to Metaverse Index (MVI)
Metaverse Index has been developed to track the developments in different fields, like entertainment and sports and see how well their transition to the virtual reality world is going. MVI was launched by Index Coop, a decentralized organization responsible for the development of many other metaverse Indices as well.
The metaverse is like an open virtual universe which has many benefits to provide its users with. Amongst some of the biggest benefits of metaverse is virtual economy. Proof of ownership and even the free stuff in metaverse is controlled and managed by blockchain technology. The contracts used in the metaverse differ from the contracts using Web 2.0 in their application.
Metaverse Index can help you as an investor to find investment opportunities in the metaverse. It helps you capitalize on the existing features and protocols of the platform rather than directing you to invest on one asset. Metaverse Index provides lots of opportunities for new companies and investors who are trying their luck in the metaverse.
If you are looking to capitalize the Metaverse Index, you must also understand its origins. Index Coop started the MVI in 2020 with the help of Verto0912 and DarkForestCapital. Lots of features have been added in this platform since its inception in 2020.
With the help of MVI, you can become an expert in the metaverse. This platform is currently being used by many professionals, and is supposed to only grow in size in the upcoming years.
How to Add Tokens to Metaverse Index
If you are looking to invest in one of the desired protocols of the metaverse through the Metaverse Index, be ready to receive several benefits. The charts provided by this platform can be used easily to make the necessary calculations before doing anything. However, before adding any of your tokens to this index, you must understand the eligibility criteria for tokens provided by the platform beforehand. Even if you want to invest in a single asset, you must understand the benefits or drawbacks you might face after doing so.
Here are some of the basic criteria, which you must follow, in order to include a token in the Metaverse Index.
The token must have a market value of more than $50 million in circulation. For a token to be added into the Metaverse Index, it must be available on the Ethereum Blockchain as well. Although this criteria is expected to be revised by the owners, you still have to follow it until the next update arrives and more platforms and blockchains are added.
In order to be added in the MVI, a token must have 3 months of operations and a market liquidity report. This is to make sure that only legitimate tokens are added to the platform. DEX liquidity on the Ethereum Blockchain is also a must for every token, if it is to be added to the Metaverse Index.
The token must also specify its category before being added to the Metaverse Index. For example, it either needs to be an NFT, or related to other categories like entertainment, AR, music etc. As the platform becomes more mature and widely accepted, it will add more token categories.
A security audit is also done on every token willing to be added to the MVI. After going through an independent security audit, a product methodologist must also independently review the audit results and approve it. The professionals can also use an assessment of detoken to approve it.
The Metaverse Index does not stake tokens right after they are listed on the index. However, as the circulating market supply of every token listed on the index increases, reasonable staking opportunities might emerge.
Working of Metaverse Index
Index weight calculation is one of the most important features of the Metaverse Index. Moreover, you should also understand how the index is maintained as it is one of the most important things about it. Knowing how tokens are selected and what is done to them after they have been selected to be added into the index is an important thing to understand.
How to Maintain Metaverse Index
The process of maintaining the Metaverse Index is an important thing everyone willing to work on this platform should understand. This process is very important as it is directly related to the quality of the index. The whole process is carried out through two steps, which include determination and balancing.
In the determination phase, every token goes through a re-evaluation process, in which experts review the criteria against every specific token, and determine if some tokens need to be deleted from the index. This phase is carried out in the last weeks of every quarter. In the start of next quarter, the index is rebalanced by introducing new things in its composition.
Calculation
Right after an eligible token is selected to be added on the Metaverse Index, the working process starts. It is important to determine the weight of every token before adding it to the index. Square root of market capitalization and DEX liquidity are used by product methodologists to calculate the weight of every token in the index. The square root part is around 75% of the total weight of a token, and DEX liquidity accounts for the rest 25%.
The rate calculation method is designed to focus on the liquidity of every token included in the index. This method awards, the whole Metaverse Index from becoming imbalanced due to over-allocated assets.
Where to Buy Metaverse Index
The Metaverse Index allows you to invest in a bunch of different tokens, instead of concentrating all of your investment in just one or two tokens. If you are interested in investing in the Metaverse Index, but do not know where to start, you can do the due diligence by doing proper research online. There are lots of different reasons why one should invest in the Metaverse Index instead of investing in just one token.
One of the biggest benefits of investing in an index is that instead of investing blindly, and hoping for the price of one token to increase significantly, you get the chance to invest in a few different tokens, and take benefit as their price increases. The Ethereum Blockchain, fully supports the Metaverse Index, and you can easily invest in this index through a platform which supports the Ethereum Blockchain.
No matter what type of digital wallet you have, you will have to have Ethereum in it, and then you can swap the ETH for MVI. So, investing in the Metaverse Index is as easy as investing in any other cryptocurrency or NFT project.
Current Holdings
Here is a list of almost all the current holdings of the Metaverse Index (MVI).
- MEME
- MUSE
- DG
- REVV
- WHALE
- RARI
- TVK
- NFTX
- ERN
- AUDIO
- WAXE
- SAND
- MANA
- ENJ
- AXS
- ILV
You can do an in-depth study about all of these tokens, one by one before investing in the Metaverse Index. More tokens are expected to be added every quarter, and the list will continue to expand forever. So, do the due diligence and avail the opportunity as soon as possible if this investment seems to be fit to you.
How to Buy MVI
In order to buy the Metaverse Index (MVI), you will have to have Ethereum in your digital wallet. That is because this is one of those tokens which can only be bought if you have another cryptocurrency in your wallet.
In this example, we will use the Coinbase platform to create an account and first buy Ethereum to then buy the Metaverse Index tokens.
In order to start investing in the metaverse index tokens, you will have to make an account with platforms like Coinbase. You can download the Coinbase application for android and iOS, or go to their official website if you do not want to use the browser extension available for web browsers on your computer.
After downloading the application or visiting their website, you will need to choose a username for your Coinbase account. This is one of the most important identification methods, through which other users can send you cryptocurrency. After creating a user name, you can also choose to keep it private. This username will also be used with the password to let you log into your Coinbase account in the future.
Once you are done, creating a self custody wallet with coinbase, you will be provided with a recovery fries, which consists of up to 12 random words. Make sure that you keep that recovery phrase secure as anyone with that recovery phrase will be able to access your Coinbase account easily. You can choose to use the cloud backup option provided by coin base. Make sure that you write the recovery phrase down on a paper and keep it somewhere safe.
Lastly, keep in mind that your recovery phrase is never required by Coinbase to let you log into your account. If you lose your recovery phrase, even the platform cannot help you recover your account.
One of the main hurdles users fees, when buying Ethereum is the fees charged by the network. Since the fees charged depend on how busy the network actually is, you should wait for the right time, and also do all the necessary calculations beforehand. You should also arrange the network fee before starting the investment process.
Now when everything is set up, you will need to buy Ethereum and transfer it to your wallet. The process of transferring Ethereum to your wallet depends on the device you are doing this on.
The final step in this whole process is buying the Metaverse Index by using your Ethereum tokens. If you are using the mobile application of Coinbase, you can buy the Metaverse Index tokens directly from the app. Go to the trade section and you’ll find all the tokens on the Ethereum blockchain. Choose the amount of ETH you’d like to swap for MVI. Leave enough ETH to cover the transaction fee. Then click on confirm and you’ll be all set.
The steps might vary, depending on the device you are using. So, always refer to YouTube if you find any particular step of the process harder to understand.
Reasons to Invest in MVI
As we already mentioned above, the Metaverse Index lets you invest in a bunch of metaverse tokens at once. This eradicates the need for you to keep checking the market to stay updated with all the new developments. By investing in the Metaverse Index, you will hardly ever miss out on crazy investment opportunities, and this can prove to be very beneficial for you.
However, since indexes are still a very new thing to the metaverse market, more tokens are still being added to it, and it is only predicted to appreciate in value in the future. Here are some of the best reasons why you should invest in the Metaverse Index.
Easy Diversification
If you are looking to benefit from the metaverse market by investing in a few tokens, you might find yourself perplexed by the boatload of options available there. So, instead of spending most of your valuable time in doing research about the best metaverse tokens, you can easily invest in the metaverse index and reap all the benefits at once.
Once you invest in the Metaverse Index, it automatically keeps adjusting and re-balancing every month, according to the data collected from the market. This way, you do not even need to spend time to maintain your investment portfolio. This is just like diversifying your traditional investment portfolio by investing in an index fund.
Less Volatility
One of the main reasons why many investors stay away from the metaverse market is because of its high volatility. Many people are afraid of losing a significant chunk of their initial investment within a few hours from investing in an asset.
By investing in the Metaverse Index, you can significantly reduce the amount of volatility your investment portfolio is exposed to on a daily basis. While the volatility will still be there, it will be much less as compared to investing in one or two metaverse tokens. After all, this is all what the Metaverse Index is meant to: minimize the volatility while maximizing the profit.
Grabbing Every Opportunity Early
Investing in the MVI tokens can prove to be an intelligent way to invest in the metaverse market. Experts calculate and rebalance the index every month according to the data collected from the market. This means that you will not have to manually check your portfolio every month for loser tokens as the experts will do that for you. They will also remove the tokens which aren’t doing well.
Moreover, every good token tries to get indexed on the Metaverse Index. This way, you’ll automatically keep benefiting from the latest market trends and the best tokens.
Less Hustle
If you want to ride the lengthy process of Manueli, analyzing every token on the blockchain and then investing in them one by one, investing in the $MVI tokens is the best choice for you. This is because every Index is designed to contain the best tokens performing well in the market.
These tokens are chosen by a group of professionals who are best at this type of work. They always strive to keep the index tokens profitable for their investors. So, MVI is meant for those who want to earn a decent income by putting minimum effort.
Conclusion
Metaverse index, just like traditional index funds, contains a bunch of metaverse tokens which are performing well on the ETH blockchain. This index allows newbie NFT investors to take advantage of the market without doing much hassle. The index is balanced every month to keep it up-to-date with the latest market trends.
Since the Metaverse Index minimizes the volatility for you, the income is also less as compared to more volatile tokens. This type of indices are still a new thing to the metaverse marketplace, and are still being analyzed by investors around the globe for their efficiency and accuracy.