Novel NFT applications usher in new possibilities
The future of the metaverse is beginning to take shape as SkuxxVerse and The Sandbox devise innovative solutions to problems of ownership and value. In the past week, we’ve seen SkuxxVerse NFTs rise in value. During the past few months, The Sandbox has announced partnerships with other projects to boost its content offer.
- SkuxxVerse model builds on NFT Worlds platform
- SkuxxVerse NFT holders get access to curated space and earn WRLD through airdrops
- NFTs as financial instruments pose big risks to token holders
- Snoop Dogg and World of Women have a more sustainable approach to building inside metaverse
SkuxxVerse NFT offers new entry point to metaverse
SkuxxVerse is a virtual space built within the NFT Worlds platform. The company has been acquiring land in NFT Worlds when it was worth less than one ETH. With a current floor price of 8.89 ETH ($27,177 at the time of writing) and a seven-day average sale price of 12.97 ETH ($39,140), SkuxxVerse has certainly made a good bit of profit.
But SkuxxVerse has gone beyond mere NFT speculation and portfolio-building. It recently minted 7,777 NFTs that have a fairly unique utility. Unlike most good NFT projects, where developers create their own token and then create the platform that gives the token value, SkuxxVerse has built its platform within an existing NFT project platform. In this case, holding their NFT gives you access to a part of NFT Worlds.
What utilities does SkuxxVerse give its holders?
This is a recent development in the relationship between NFTs, DeFi and the metaverse, and it offers a glimpse of how things could look in the future. Cross-application projects, with more and different blockchain technologies interacting, could soon become the norm. Staking NFTs and earning yields in metaverse lands where users play games, earn tokens and create worlds that they own and control.
Ownership of SkuxxVerse newly-minted token provides holders with two benefits:
- Token holders have exclusive access to the SkuxxVerse custom-built metaverse ecosystem.
- Part ownership of a community wallet containing NFT Worlds tokens. SkuxxVerse NFT holders will also be eligible for the WLRD airdrops.
SkuxxVerse will generate WRLD, the native token of NFT Worlds, by staking, renting and P2E yields. With SkuxxVerse apparently owning multiple plots in NFT Worlds, they will generate plenty of WRLD for airdrops through the NFT Worlds DeFi mechanics. Alongside this, according to the SkuxxVerse roadmap, the team intends to put their profits to work by purchasing more plots and making even more money.
Balancing risk and opportunity
It’s at this stage in the journey of NFT and metaverse innovation that we start to think of projects like SkuxxVerse not as community-driven groups with a shared interest, but as vehicles built purely for the accumulation of money.
When you strip away the golden tickets and the ‘exclusive access to its custom built metaverse’, a SkuxxVerse NFT is a securitized investment instrument backed solely by an unstable asset: NFT Worlds. The average price of land in NFT Worlds has shot up by 112% in the past 30 days. It’s not being pessimistic to suggest its value could halve in the next 30 days – we’ve seen such swings before.
If this happens, and the WRLD earned from staking, renting and P2E yield dries up, where does that leave SkuxxVerse and its NFT holders?
Smaller projects setting up shop in the big mall
SkuxxVerse is making quite radical innovations to take advantage of financial opportunities that could only exist with blockchain technology. Other small projects are going down the “traditional” route. They’re using established virtual worlds as platforms for their content.
The Sandbox, one of the largest metaverse worlds there is, has struck up various commercial partnerships with NFT projects. These are traditional quid pro quo relationships: The Sandbox needs content and the small businesses need a large entity to house their content. It works for everyone.
I wrote not too long ago about World of Women teaming up with The Sandbox to create and curate an interactive world. The goal is to invest in education and mentorship for women who want to participate in web3. That both parties will realize some of their own commercial goals is an added bonus.
Maintaining a community beyond the hype
It’s fairly obvious what The Sandbox and its partners get out of these relationships. But what’s in it for the fans and users? Access, mainly. If you own a World of Women NFT, you automatically get access to their curated space in the virtual world.
Similarly, holding a Doggie ‘provides access to a playable The Sandbox avatar, as well as access to future features inside the metaverse’. So there is real utility in holding one of these NFTs and it seems that metaverse platforms are helping to provide it.
For any NFT project to survive beyond the initial hype period, it will have to do one of two things: prove itself to be a store of value or provide genuine use for its holders. Access to fun spaces where people want to spend time seems like a real utility that could attract and hold a devoted fanbase.
For more news and stories about NFTs and exciting new projects, make sure you stay tuned to our blog and follow our Twitter feed. You can use our Token Explorer to track metaverse native currencies like SAND or MANA. Our NFT rankings pages are a great place to spot trends in the market and our Discord server is where you should go for interesting conversations about what’s happening in the web3 world.