Whether you're new to Decentraland Investing, thinking of getting back in, or just want a refresher on why invest in Decentraland — this article is for you.
Decentraland is one of the many altcoins trying to gain a footing in the cryptocurrency industry. Decentraland is a virtual space or a digital world where users can own digital real estate, artwork, and non-fungible tokens. The members have the power to get involved in the governance of the project. They buy and sell virtual assets using the project’s native digital currency called MANA. MANA is an ERC-20 token, meaning that the project is based on the Ethereum blockchain.
This project began in 2016 as a 2D experiment but has since transformed with time into a 3D large virtual world. The project was the brainchild of two developers Estaban Ordano and Ariel Meilich. They created a virtual world that allows participants to buy, develop, create and sell digital assets such as parcels of virtual estates, art, and other collectibles.
Users can acquire the project's currency MANA from several exchanges using other digital currencies like Bitcoin and Ether or fiat currency. You can also acquire MANA by selling your collectibles on the Decentraland Marketplace
Decentraland is a form of an online game that brings together virtual reality with blockchain technology. Participants in this world have a freehold of the rules in the project. Users collect or buy non-fungible items such as real estate, clothes, art, and other valuable items and store them in their digital wallets. They can then sell the items when they increase in price to other participants at the Decentraland Marketplace.
The virtual space has everything. Players can choose to own and sell anything, or rent out their property. One can also own games and social activities. It is more or less like playing a physical monopoly game, but now in a virtual world. Your success depends on your efforts and imagination.
Now that you have a little background about Decentraland, the big question remains, should you invest in Decentraland or rather, in its digital currency MANA. This article will highlight some of the reasons you can consider before making a decision to invest in MANA.
Below we cover 14 major reasons why you should invest in Decentraland MANA and why Decentraland investing can be so powerful. First, let's start with the hard fact-based reasons to invest in Decentraland, and then we'll transition into some less discussed, but still important, reasons to invest.
So, why should you invest in MANA today? Continue reading for more insight into this interesting project.
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14 Reasons Why You Should Invest in Decentraland
There are all kinds of reasons why you might want to invest in Decentraland — probably some you’ve never considered. Here are 14 that we found.
1. Decentraland Practical Use Cases
There are so many cryptocurrencies now since the inception of Bitcoin, the most popular and the most expensive of these coins. There are currently about seventeen thousand cryptocurrencies, but very few have any practical uses. Most simply create emulate existing coins, initiate initial coin offerings (ICO), collect money from potential investors, and then disappear into thin air. Decentraland is one different project. It is among the few that have practical use cases.
Community members on the Decentraland platform can develop apps and create 3D scenes using the platform’s scripting language. These applications are bound to provide better and richer interactions among the members of this community. There is content curation where members have developed neighbourhoods attracting other users and slowly growing organic communities.
This platform also earns money through advertising. As the community within the virtual neighbourhood grows, brands are taking this as an opportunity to set up billboards and buying spaces within these virtual communities. Advertising is a great way of attracting revenue to this community and its investors. It makes these tokens worth your investment.
In addition to advertising, there is the aspect of users having ownership of NFTs or (Non-Fungible Tokens). These are digital assets that represent real or physical assets like buildings, art, music, and other items. Users can buy and sell these online and make profits from the same, without ever touching the physical items.
Lastly, the communities on Decentraland are making social connections bringing rise to meaningful relationships. These relationships also build values as people within these communities trade with one another and help grow the community in all aspects including its financial growth. For instance, there is a lot of speculation on LAND tokens that are selling fast and at good sums of money. LAND gives members of the community more votes and hence more power.
With such practical use cases, MANA tokens that power the Decentraland network are bound to grow in value as more members join and support this community.
2. Decentraland Runs on Aragon
Decentraland platform runs on a special DAO software called Aragon. It has agents that enable the platform to connect to Ethereum’s smart contracts. Ethereum is an established platform that allows users to develop smart contracts and decentralized applications. Smart contracts are ideal for ensuring transparency and enabling peer-to-peer exchanges.
Businesses that have converted their physical assets to digital equivalents find it easier and cheaper operating increasing the value of their assets significantly. Following this path, you may want to consider having MANA tokens as part of your cryptocurrency portfolio as they are likely to increase in value with time.
3. Decentraland High Market Capitalization
MANA, the currency fuelling the Decentraland has a market capitalization of $5 billion at the time of writing this article. Market capitalization is the total value of a particular cryptocurrency. You arrive at this figure by multiplying the price of a single token at a particular point in time with the total number of those tokens in circulation. The higher the market capitalization, the more stable that digital currency is likely to be.
All cryptocurrencies are volatile and are prone to losing value at any one time depending on the prevailing market forces. Just like a big ship is more likely to withstand a storm as compared to a smaller one, a digital coin with a bigger market capitalization is likely to withstand any negative effects that hit the market. Its value will not be affected in the same way one with a smaller one will be affected.
4. Decentraland Total Number of Parcels Capped
Decentraland has this unique system that allows community members to acquire and own virtual LAND. This is an ERC-721 NFT token that is bought on the Decentraland platform. These tokens have unique characteristics and hence cannot be interchangeable like the MANA tokens. They represent virtual parcels of lands measuring 16 by 16 meters and use NFTs to represent them.
As a community member of this protocol, you can use MANA to purchase LAND from other owners or sell yours for the same. One parcel of LAND costs about 6,900 MANA which translates to about $5,500 at the time of writing this article. There are also common spaces like roads, plazas, and shops that are commonly owned. No one has the authority to buy or sell these common spaces
The value of MANA grows with the value of LAND, considering its scarcity. The parcels in the whole community are capped at 97,100. The more they are bought the fewer they become and the higher their prices become. Considering that LAND is finite just like in the real world, it is this scarcity that is growing its value and consequently the value or the price of the MANA tokens.
5. Decentraland Corporation with Major Companies
Anyone whether an individual or an institution can own and develop LAND on the Decentraland platform. The value of this LAND depends on where it is located, and the manner in which you develop it just like in the real world. Major investors are taking significant portions of LAND, and developing institutions such as gaming arenas that are attracting more members into this community.
Among the established companies that plan to acquire an estate in Decentraland is Atari. This gaming company plans to develop a virtual gaming arena where gamers will have access to games such as Break-out, Pong, Asteroids, Centipede, and Missile Command among others.
Social connections are now more on the internet than in physical interactions. With this in consideration, you can expect more and more people to join such metaverse communities for such activities for their entertainment. Such activities are bound to add to the value of MANA, the currency used in Decentraland.
6. Decentraland Easy Entry Point
Established cryptocurrencies like bitcoin and Ethereum have very high entry points, especially for new or small investors. Those that just want to try out investing in crypto and wish to spend a few bucks could find it difficult to buy a single unit of such coins. You are forced to buy a portion of a token which might not earn you a lot as compared to when you can buy several units of a cryptocurrency.
With Decentraland, you can buy several units of the MANA token. At the time of writing this article, the price of one MANA token was about $2.91. With $1000, you could buy about 340. If the price of one MANA token was to rise to about $3.5, your investment would be $1,400, earning you a cool $400.
You also have an opportunity of investing as small as $5 and still get several coins that you can afford to forget for more than five years to allow them to grow. Even if the project was to lose track, your life would not be affected in any way by losing $5. With the crypto volatility, it is always advisable to invest money that you can afford to lose.
7. Decentraland High Liquidity
When you invest in any cryptocurrency, you expect that particular crypto to appreciate so that you can sell it at a profit. This concept also applies to any good or service, and even company stocks. However, there is always a catch at selling anything, even if it appreciates. There have to be willing buyers. Without the buyers, you would remain stuck with the asset you were intending to sell. It is this aspect of selling that the liquidity of a particular asset and in this case crypto comes in.
A liquid market is one where numerous traders include buyers and sellers that are willing to either buy or sell their assets. The cryptocurrency industry is currently a very liquid market. A liquid asset is one you can easily convert into cash. You can determine the liquidity of an asset by looking at its trading volume.
MANA, the token that runs the Decentraland platform had a trading volume of $516 million in the last 24 hours at the time of writing this article. This volume shows you that the token is fairly liquid. If you wanted to sell tokens worth about $20,000, you would find a buyer easily. That amount is too little compared to the day’s trading volume.
8. Decentraland Listed in Major Crypto Exchanges
Just like you buy stocks from a stock exchange, or your groceries from your local store or market, cryptocurrencies also have their markets, from where you can buy the coins. These markets are called crypto exchanges. It is from these exchanges that you can buy digital coins using either fiat currency or other cryptocurrencies.
There are a lot of cryptocurrency exchanges, and not all of them are as reliable or secure. Some have already established themselves in this industry, and are trusted by most developers. Some of these are Coinbase, Bitfinex, Kraken, and Binance. If a crypto coin is listed on one all most of all these exchanges, then you can consider it a viable investment.
MANA is listed in a variety of established exchanges. These include Binance, Bit-Z, Kucoin, and OKEx among others. The exchange on which a token is listed is just as important a consideration as understanding about that token. Tokens listed in exchanges that take security issues seriously are viable investments since you can be at peace that your tokens will remain safe when trading.
9. Decentraland Freedom to Choose
Decentraland is unlike other cryptocurrencies. It is as mentioned earlier a virtual city built or developed upon a blockchain. The only way to access this particular city is by buying MANA, the city's currency, and then spending it on the platform in whichever way you choose to. You can buy LAND and develop, or visit the virtual art galleries and invest in the same. The interesting part is that the property you acquire from this virtual city grows or loses value in the same way as a real-life asset.
The fact that you have the freedom to invest in anything you look at makes this platform interesting and continues to attract more members into this interesting community. You can even meet prospective business partners virtually and establish valuable business contacts. This freedom to do anything you wish with your tokens kind of gives value to this protocol. If this interest is sustained, then you can earn some good money from the same.
10. Focussed Developers
Cryptocurrency projects have developers that initiate them and then work to grow and support them as they gain acceptance in the market. A majority of these projects collapse in the first few months of their existence as most people online are phoney or frauds that just want to take advantage of the industry, make a few dollars from unsuspecting individuals, and then disappear.
That is why there are now more than four thousand cryptocurrencies that have developed before, but only a few remain in the industry. It all has to do with the team behind the crypto, their vision, and the mission of the project.
Argentinean developers Estaban Ordano and Ariel Meilich, have been working around the clock to ensure the stability of this platform, and to attract as many users as possible. These two are experienced entrepreneurs and developers. Esteban is one of the founders of the blockchain technology infrastructure company called Zeppelin, while Meillich has started several companies including the successful online translation agency as well as the CRM platform. Considering these developers' experience and skills, and the strong drive they have towards growing the Decentraland platform, you can expect it to grow in the next few years.
At the moment, they have managed to create a city whose economy is worth $20 million. The two aim to drive the value of this city's economy to a billion dollars in a few years. If you buy your tokens now and they manage to get to their target, you will earn a handsome profit. It is an aspect or factor worth consideration.
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11. Decentraland Progressive Business Model
Decentraland has an impressive business model that will see the project grow in value significantly. One, the project is working with the gaming industry that is now worth billions of dollars. Various entrepreneurs are developing innovative games within this platform to complement its environment and give community members a source of entertainment.
There is also the issue of allowing LAND owners to create and run profitable businesses within the city. It means that there will be growing businesses within the project that will no doubt grow the economy of this city. Adding up to the virtual industry that is projected to grow significantly in the next few years, you can expect Decentraland to grow immensely and with it its digital currencies MANA and LAND.
12. Decentraland Complete Ownership
Most virtual reality projects limit the ownership of tokens to the owners of the platforms. Decentraland has taken a different approach from this other VR projects. Instead of corporate heads owning and controlling most of the assets within the platform, it is the users that have complete control and ownership. They also have the power to make decisions on what happens on the platform.
This level of decentralization has created immense confidence in those buying and managing virtual estates. Those that choose to sell their estates at a profit, or rent them out, get to keep the full proceeds of their transactions. With such a system, you can expect more investors to pump money into this project, and raising the value of the LAND tokens and consequently that of the entire economy of the virtual city. Your investment will certainly grow if everything goes according to the way it is currently set.
13. Decentraland Supportive Social Media Community
A lot of hypes, cryptocurrencies or not grow partially as a result of community support. If a digital coin has a community of people online that are making it a trend, then you would expect such a coin to grow whether or not it has a practical value or use. Recently, coins such as Dogecoin, the famous meme coin grew as a joke just because it had a pool of people supporting it even if it never had any practical use.
Decentraland has a practical use and a community of people that form the population of the virtual city. These individuals are using social media platforms to create awareness of the platform and to attract other users. The bigger this social media community grows, the more the hype about this coin will grow, pushing its value up.
14. Decentraland Backed Up by Established Investors and Advocates
Decentraland has strong backing from big and reputable investors. These groups include Bitcoin Suisse and the Digital Currency Group. These groups are set to invest millions of dollars in this project, a move that will see it grow exponentially. They have also expressed a lot of optimism on this project. Notable investors that are also backing this project include Barry Silbert who CNBC television has branded as the king of cryptocurrency. In a recent interview on the same television network, the investor said that Decentraland MANA tokens are part of his crypto portfolio.
In addition to such investments from notable institutions and individuals, the project's developers are also actively making their investments. When developers of a particular project invest heavily in a particular project, it is an indication that they have faith in that particular project. It is a good sign that they will push the project to its success. The good thing is that these developers have made a massive $5 million investment, intending to grow the VR industry. These trends show that this project is here to stay, and is likely to become the next big thing.
These are a few but major reasons to invest in Decentraland MANA. If you are still in doubt, do not worry. It is a good sign that you are cautious. Take your time to go through the highlighted reasons, do your research, then make your decision only when you are fully confident of adding this coin to your portfolio.
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