How to Buy Meta – Los Angeles Business Journal

Meta Platforms Inc. – formerly known as Facebook Inc. – Apple Inc. and Microsoft Corp. all invest heavily in virtual environments known as the metaverse. Those looking to own “real estate” or start businesses related to the metaverse, just like in the real world, often need loans, financial help, and advice.

Metaverse is a term that describes a version of online interaction in which traditional messages and video chats are supplemented with virtual scenes and images, providing users with the ability to personalize online interactions.

For now, this reality is largely contained within a headset or on a computer screen, allowing users to experience spaces such as virtual office buildings, shopping malls and event spaces.

Bloomberg Intelligence estimates that the metaverse will represent an $800 billion marketing opportunity by 2024. Bloomberg predicts that the core market for online game makers and gaming hardware could exceed $400 billion, while live entertainment and social media make up the rest.

Meta is expected to invest $50 billion in its metaverse over the next few years, developing virtual reality goggles and robotic arms to connect real-world users to the virtual world.

Small enterprises

As large companies build the gadgets and framework of the metaverse, smaller companies are looking for ways to create experiences and sell products to virtual visitors. So how does a business find the financing to invest in a virtual storefront, office building, or event space?

Unlike getting a URL for less than $100 in the early days of the internet, getting started using “land” in the metaverse can currently cost anywhere from $20,000 to $40,000, minimum. Many entrepreneurs and small business owners will need loans to claim their right to this new virtual space.

Macaw

There will be many legal questions about funding that will arise from the metaverse. It’s an area of ​​law that caught the interest of Tom Ara, a partner at DLA Piper, which has branches downtown and in Century City.

Ara advises clients on the future of Web 3.0, or the Metaverse. Some of us may remember that the first version of the Internet consisted of basic web pages and email. Web 2.0 emerged with the advent of social media.

Ara thinks the major questions for the Third Age of the Internet revolve around how the metaverse will be governed and how it will be accessible.

“Zoom, Microsoft Teams, those are already a metaverse release,” Ara said. But as the space grows and real money is involved, issues will arise around “how do you control it legally”.

It must be a safe place for businesses and consumers.
Brandon Johnson
TerraZero

“People will want to know if there will be connectivity between metaverses built by different companies,” Ara said. “Will you be able to transmit your virtual identity across the metaverse? Will the helmets cross the metaverse? »

Many of these questions remain unanswered. Ultimately, Ara observed, “People want to be where their friends are.”

For entrepreneurs looking to move into the metaverse, it’s currently a question of where their customers will end up in virtual reality. But for those willing to take a bit of a risk, there are companies willing to let them in.

‘Mortgage metaverse’

In January, Vancouver, British Columbia-based TerraZero Technologies Inc., which has a US subsidiary in Century City, announced that it had entered into one of the first-ever “metaverse mortgages” with one of its clients. on an Ethereum-based metaverse platform called Decentralized.

How it works? Potential customers can access the TerraZero platform online, explore offers and listings, including lot size, location, and applicable prefabs in the metaverse of their choice.

“We don’t lend for speculation,” Dan Reitzik, CEO and founder of TerraZero, told The Business Journal. “It’s more of a small business loan.”
Reitzik explained that their first metaverse mortgage client told him, “This is what I’m going to build and this is how I’m going to make money.”

When a customer signs the mortgage contract, the NFT land (non-fungible token) is held by TerraZero as the registered owner until the loan is repaid according to the agreed terms.

TerraZero grants the customer the rights to deploy, so that the customer can integrate the metaverse, organize events, manage digital storefronts or host an internal company office. Customers make monthly payments until the mortgage is paid off, then the NFT is fully transferred to
the customer.

TerraZero did not disclose how much the customer paid on a down payment or the interest rate, but did note that it was for a two-year mortgage.

Currently, any user can connect a crypto wallet to the Decentraland app and tour the world to search for investment opportunities. The world is populated with concert halls, parks and casinos.

Ownership in metaverses is finite, and just like cryptocurrency, there is only a limited amount that can be issued, so its scarcity is valuable. However, there is no limit to the number of metaverses that can be built. Crypto and NFTs are volatile assets, but under certain circumstances they have proven to be very lucrative. Investors and big companies like Nike Inc. and Sotheby’s have had some success with NFT sales and the metaverse.
At the moment, the metaverse runs on cryptocurrency.

“In reality, 98% of consumers have never had a crypto wallet,” said Brandon Johnson, Chief Experience Officer at TerraZero.

He noted that there will need to be a way for consumers to use their regular credit cards to encourage wider adoption of spending money in the metaverse.
“It needs to be a safe place for businesses and consumers,” Johnson said.

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