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Benzinga
Benzinga
Business
Cindy Jin

The Metaverse Has A Liquidity Issue. Here's How To Fix It Using Interoperability, Fractionalized Assets, And DAOs

The metaverse is an emerging market that every investor is looking at, and yet it’s difficult to get into for two reasons. First, it lacks an evaluating system and tools for investors to decide exactly which metaverse to invest in. And second, metaverse land assets have liquidity issues, so ensuring returns can be unpredictable. Desirable plots of land come with high price tags, while plots that are far away from desirable areas are therefore valued lower, and some early buyers are finding it difficult to resell their properties for a profit. To incentivize new investors to join the metaverse markets, a guarantee of liquidity is necessary, otherwise potential investors won’t be interested in this ecosystem.

The lack of liquidity is due in part to a few reasons. Interoperability between metaverses has not been adequately developed, assets are largely unaffordable, and there are security risks complicating ownership. Conceptually, the metaverse is about open transferability and utilizing protocols that act as standards for transacting in the marketplaces. There are some unknowns regarding these aspects of the metaverse, which companies that develop and design technologies for the new virtual spaces should clarify to make it easier for ordinary people to invest in the metaverse.

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