Two megatrends behind one crypto … why it’s different than its competitors … how it gets to 10X

 

Cryptos are on fire.

The metaverse is on fire.

And (this particular cryptocurrency) finds itself at the epicenter of both of these megatrends.

As a result, we see this as a token with two enormous industry tailwinds at its back over the next several years.

This comes from our cryptocurrency expert, Luke Lango.

Today, we’re putting a smart speculation on your radar that Luke just presented to his Daily 10X Stock Report subscribers.

It’s not intended to be a core holding of your portfolio. You should expect its ride to be volatile. And there are plenty of potential dangers to its future prospects.

That said, it could be a multi-thousand percent winner in coming years if current tailwinds continue blowing.

Here’s Luke:

We’re incredibly bullish on the crypto market. And we think the metaverse crypto we’re about to tell you about could be one of the crypto market’s biggest winners in the long run.

Today, let’s put you in the pathway of a potential multi-bagger thanks to two of the most explosive trends in the investment markets.

Let’s jump in.

***The investment at the nexus of cryptocurrencies and the Metaverse

For newer Digest readers, Luke is our hypergrowth expert, and the analyst behind the Daily 10X, as we call it. His specialty is finding market-leading tech innovators that are pioneering explosive trends, capable of generating 10X returns for investors over the long-term.

The Daily 10X is like nothing else we offer. Luke doesn’t keep a portfolio or provide sell advice. But every day the market is open, he highlights a small cap stock – or in this case, a cryptocurrency – with the potential to grow 1,000%.

It’s a lucrative approach to the markets. To illustrate, in just the past five years, Luke has recommended 17 different 1,000%+ gaining stocks. Most investors never enjoy even one such 10X-winner.

Returning to today’s opportunity, what’s the play that finds itself at the center of the crypto and Metaverse trends?

Decentraland (MANA-USD).

Here’s Luke with the introduction:

As its name implies, Decentraland is a fully decentralized virtual world where consumers can create avatars within which they explore the virtual world in.

While in Decentraland, consumers can connect with other players, play various games, attend parties, watch concerts, own land, create parks, and more – it truly is just a virtual, sci-fi version of the real world (which many folks these days are starting to call the “metaverse”).

People are already making money in Decentraland.

Back in March, we profiled this virtual world here in the Digest as part of a dive into the broader Metaverse.

From that Digest:

One gamer on the Decentraland virtual land platform decided to purchase 64 lots and combine them into a single estate.

Dubbed “The Secrets of Satoshis Tea Garden,” it sold for $80,000 purely because of its desirable location and road access.

Now, there are plenty of companies trying to build out their own version of the Metaverse. There’s Roblox, Google, and, most notably, Facebook.

Earlier this year, Facebook’s founder and CEO, Mark Zuckerberg, said he’s going to change Facebook from being a social-media company to a “metaverse company.”

But Decentraland has a key advantage over these other platforms. Back to Luke:

The unique blockchain aspect of Decentraland that separates it from these other metaverses is the platform’s Decentralized Autonomous Organization, or DAO.

The DAO essentially takes the governance of the platform – which, in a traditional metaverse like Roblox, is controlled by Roblox developers – and hands that power over to the users.

Mechanically, this is accomplished very simply.

The Decentraland DAO owns the most important smart contracts and assets that make up Decentraland, including the LAND contract, the Estates Contract, Wearables, Content Services, and the Marketplace. Decentraland players – through playing Decentraland, acquiring clout and influence, and accumulating Decentraland tokens – become DAO voting members, where they can propose and vote on policy updates, future LAND auctions, and broadly, whatever the community deems relevant.

Through the DAO, then, Decentraland hands control of the platform over to players, and rewards those players.

***This is a huge differentiator and it’s why Decentraland will likely attract top creators – which will drive its broad adoption

To grasp how big this is, we have to understand how it works at other Metaverse platforms.

Luke explains that a common feature in existing metaverses is a marketplace. Players can create mini-games and non-fungible tokens (NFTs) within the virtual world. They then sell their products to other players for money in these respective marketplaces.

Take Roblox. Its marketplace is a huge revenue generator. And every time a creator makes some money via a marketplace transaction, Roblox takes a big cut, obviously decreasing what the creator gets.

Back to Luke:

But because Decentraland does not generate revenues via the platform, it doesn’t need to take a commission.

In fact, thanks to the DAO, there is no central authority to charge that commission. Therefore, all the revenue a creator generates through Decentraland is given entirely to the creator – no questions asked.

As a result of these unique value propositions, Decentraland’s metaverse has witnessed significant usage growth over the past several months.

So, as more creators want to build on the Decentraland platform, it increases demand for Decentraland’s native token – which is why one year ago today, it was trading at $0.08…and as I write Friday morning, it’s trading at $0.80. That’s a 1,000%+ gain in one year.

But it could just be the beginning.

***We are in the infancy of the Metaverse, which will be enormous

Here’s Luke describing what’s on the way:

The metaverse is coming.

Every major tech company in the world is pivoting toward creating metaverse software because virtual reality (VR)/augmented reality (AR) hardware technology has advanced to a point of allowing consumers to plug into these virtual worlds and have a largely positive experience.

Over the next decade, we believe metaverse applications will witness enormous growth…

We see metaverses as the next evolution of social media. In the social media space today, you have multiple winners – Facebook, Snap, Twitter, Pinterest, Instagram, TikTok, Clubhouse, etc. – because each platform specializes in a different value-add category. We imagine that the metaverse market will shake out similarly, with some metaverses geared toward gaming, some geared toward communications, some geared toward NFT trading, and multiple others geared toward a variety of other applications.

In this market, we think Decentraland has an opportunity to emerge as a niche metaverse with a high value-add for a sizable segment of users.

As to Decentraland’s path to another 10X gain from here, it’s pretty simple…

Luke explains that Roblox is worth about $45 billion with around 48.2 million active users. Let’s call that a valuation per user of about $1,000.

If Decentraland climbs to be valued at only half the size of Roblox – keep in mind, that’s the current size, not where things might grow to in the coming years – that would be about 25 million active users.

At $1,000 per user, that suggests a potential long-term valuation target of $25 billion. Right now, MANA’s market cap is $1.4 billion. That would be a 1,685% gain.

And that projection doesn’t include the “rising-tide-lifts-all-boats” nature of massive growth in the broader Metaverse.

Bottom-line, there’s plenty of risk here, but the potential payoff is massive. For more explosive set-ups like this one from Luke’s Daily 10X service, click here.

I’ll give Luke the final word:

Will Decentraland execute and turn those tailwinds into huge metaverse usage and economic value for token-holders?

Unclear – but there’s certainly enough upside potential here to warrant taking a position in Decentraland token today.

Have a good evening,

Jeff Remsburg