The “metaverse” is a shared digital space that incorporates real-world elements such as ownership, identity, and financial value. The Metaverse Index project is designed to allow you to invest in the evolution of this digital sector.
Index Coop has launched the Metaverse Index, a collection of tokens created to capitalize on the trend in entertainment, sports and business going virtual. The MVI and ERC-20 token represents the index.
MVI enables investing in the metaverse by giving investors access to a diverse set of protocols rather than relying on a single token.
Read on to learn everything you need to know about Metaverse Index (MVI) and How to Buy Metaverse Index on CoinStats in a few simple steps.
What is Metaverse Index (MVI)
The Metaverse Index (MVI) is a virtual economy index driven by NFTs and blockchain technology, designed to capture the trend of entertainment, sports, social activity and businesses moving to a virtual environment.
Inclusion criteria for MVI tokens
The index follows a methodology to evaluate which tokens to include. Each token must meet the following conditions to be accepted into MVI:
Ethereum token: The token must be available on the Ethereum blockchain. If the Set Protocol infrastructure becomes multi-chain, this requirement will be revised.
Story: The protocol must be operational for at least 3 months and the token must have a price and liquidity history of 3 months.
Market capitalization: The outstanding market capitalization must be greater than $50 million.
Liquidity: The token must have reasonable and consistent DEX liquidity on Ethereum.
Protocol categorization: The protocol must belong to one of the following token categories on Coingecko: non-fungible, entertainment, virtual reality, augmented reality or music tokens. As the market develops, other categories will be introduced.
Staking: When launching the index, no tokens will be staked. This is likely to change as liquidity increases and staking becomes a safe way to earn income.
Security: The protocol must have undergone an independent security audit, the results of which have been verified by the product’s methodologist. In the absence of an audit, the methodologist makes a subjective assessment of the protocol based on the criteria listed above and discussions with the team.
Index maintenance
Methodologists maintain the quality of the index through monthly maintenance, divided into two phases:
Determination phase: During the last week of the quarter, the inclusion criteria are reassessed and tokens are added and removed from the index calculation accordingly.
Rebalancing phase: After the conclusion of the determination phase, the composition of the index will change to the new weightings during the first week of the following quarter.
Underlying tokens in the Metaverse index at the April 2022 rebalance:
Illuvium (ILV), Axie Infinity (AXS), The Sandbox (SAND), Decentraland (MANA), Enjin (EFI), Rally (RLY), WAX (WAXE), Audius (AUDIO), Yield Guild Games (YGG), Decentral Games (DG), Whale (WHALE), Terra Virtua Kolect (TVK), Ethernity Chain (ERN), Rarible (RARI), NFTX (NFTX), REVV (REVV).
MVI Benefits
Simplicity: Based on the concept of the Metaverse, MVI offers a simple solution to capture a broad market trend without having to constantly search and rebalance a portfolio.
Risk management: Holding an index reduces the volatility of individual tokens.
Profitability: Lower gas fees compared to buying and selling tokens separately.
Transparency: To evaluate tokens for inclusion and removal, the index follows a set of transparent rules.
Where can you buy Metaverse Index (MVI)
$MVI can be purchased at app.indexcoop.com/mvi and is available on both Ethereum and Polygon. Simply connect your wallet and exchange ETH for MVI. You can also buy it on major cryptocurrency exchanges such as eToro and Crypto.com, as well as on decentralized markets such as Uniswap.
Metaverse Index has partnered with the Set protocol, allowing the creation, maintenance and trading of “sets”, baskets of ERC-20 tokens representing a portfolio of underlying assets.
How to buy the Metaverse index on Coinstats
Some cryptocurrencies, such as the Metaverse index, can only be acquired on decentralized exchanges with another coin. To buy Metaverse Index, you must first buy Ethereum (ETH) and then use ETH to buy Metaverse Index (MVI).
You can buy ETH on popular cryptocurrency exchanges like Coinbase, Binance, Bitfinex, Gemini, Bitstamp, Kraken, KuCoin, etc. with credit/debit cards or bank transfers.
Let’s learn how to buy Metaverse Index on CoinStats:
Step 1: Connect your wallet
Go to coinsstats.app and search for the Metaverse Index (MVI) price in the search bar. Scroll down to the “swap” features and connect the wallet where you store the ETH tokens.
Once you click on the “Login” button, you will see different wallet choices offered by CoinStats. Find your wallet and connect it.
You can connect it by scanning the QR code via WalletConnect or manually adding the Blockchain/Crypto and Wallet address in your web or mobile app.
Step 2: Select the token
After successfully linking your wallet, choose the token you want to trade by providing the data in cryptocurrencies or USD/EUR.
For example, we trade ETH for MVI or buy Metaverse Index (MVI) with ETH.
In the “From” field, select the ETH token from your wallet, and in the “To” field, select “MVI”.
Step #3: Click Redeem
Click Advanced Options to change drag and throttle settings. When you’re done customizing, scroll down to the bottom of your screen and click the “Submit trade” button.
After submitting your exchange request, you will be prompted to confirm it. To begin the trade, review the information displayed on your web or mobile app screen, then click the “Confirm” button.
Your transaction is being processed. The pace of your transaction will vary depending on the gas settings you select. You can track your transaction from the charger in the bottom right corner or from the wallet homepage.
REMARK: You will be charged network transaction fees, also known as gas fees. These are the fees required to complete a transaction on the blockchain. Essentially, gas fees are paid in the native currency of the network, i.e. Ethereum for the Ethereum network. CoinStats also charges a small exchange fee in addition to gas fees.
Step 4: Buy a wallet (optional)
After completing your Metaverse index purchase, choosing a crypto wallet to store your coins securely is the next step. Your coins can be saved in your brokerage exchange wallet, but we strongly recommend that you create a private wallet with your own set of keys. Depending on your investment preferences, you can choose software or hardware wallets, the latter being a more secure option.
A hardware wallet, also known as cold storage, is a physical device that stores the private keys needed to receive and transmit cryptocurrency. Hardware wallets are often considered the safest option for storing your cryptocurrency because they offer offline storage, which reduces the risk of hacking. They are password protected and will erase all data after several failed attempts, thus preventing physical theft. Hardware wallets also allow you to sign and confirm blockchain transactions, adding an extra layer of protection against cyber threats.
Ledger wallets are arguably the most secure hardware wallets available for users of all skill levels. The Ledger Nano X is ideal for experienced crypto traders and can store various assets, including DPI tokens.
A software wallet, on the other hand, is the most user-friendly crypto wallet, allowing you to instantly interact with many decentralized finance (DeFi) applications. However, software wallets are vulnerable to security breaches because they are hosted online. If you want to use a software wallet, do your due diligence before selecting one to avoid security vulnerabilities. As an additional layer of protection, we recommend using a platform that supports 2-factor authentication.
Final Thoughts
MVI is currently worth $50.26, down 85.3% from its all-time high of $354.73 in November last year. But it’s not all bad news; the token is still up 71.6% from its June 2021 low of $29.28.
In summary, the first 6 months of MVI have been a frenzy. Despite the poor performance of the last six months, we remain quite optimistic about the Metaverse concept. The massive social migration to the digital space will eventually result in Metaverse’s global economy 2.0, running on Ethereum and tied to DeFi.
We are seeing positive product-market fit indicators in the MVI and believe some of the liquidity issues will be resolved over time. In the end, the Metaverse is unavoidable.
You can also visit our CoinStats blog to learn more about wallets, cryptocurrency exchanges, wallet trackers, tokens, and more, and explore our in-depth buying guides on buying various cryptocurrencies , such as How to Buy STEPN, What is DeFi, How to Buy Cryptocurrency, etc.
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