Virtual worlds being built in the metaverse could provide a new opportunity for peer-to-peer lenders, industry stakeholders have said.
Andrew Adcock, chief executive of Crowd for Angels – the only regulated crowdfunding platform that accepts crypto as a payment method – suggested that the metaverse could provide a new way for investors to fund loans.
Read more: Proptee unveils first metaverse investments
Several online virtual worlds, known as the metaverse, have popped up in recent years such as Decentraland.
Many have their own cryptocurrency and people can buy portions of virtual land worth thousands of pounds.
The average cost of digital land is around $5,300 (£4,000), according to Forbes and could rise if there is increased demand.
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“Whilst the metaverse is still in its infancy, with the majority of activities online taking the form of gaming or socialising, more and more traditional firms are looking to the metaverse as a way to connect with younger retail clients and cash in,” Adcock said.
“In the future, who knows what the metaverse holds for the financial sector but it is not beyond the imagination to have annual general meetings with investors online, show potential investors 3D designs to walk around and discuss portfolios. All whilst allowing the individual to part with their digital currency to stake in the latest venture.
“The P2P world could benefit from this scene by engaging early and creating channels for the investors.”
Although it is not P2P, property investment platform Proptee is already trying to gain exposure to this trend and is offering metaverse investment opportunities through its app.
The idea is that investors could back digital land purchases and benefit from capital growth and any rental income if the land is used to display virtual assets such as non-fungible tokens.
“Our investors are certainly interested in the metaverse and mainly using it to diversify their portfolio,” Benedek Toth, co-founder of Proptee, said.
“We all saw the insane hype and growth around the topic last year, but I think we need to be careful and only list well-established projects for Proptee investors.
“Customer feedback is great so far as Proptee is the only service where you can buy and sell these coins for free, without any commission.”