The term “web3” has truly entered the public discourse, with some of the world’s greatest businessmen and celebrities referencing it. The dream of creating a new, improved, and decentralized version of the internet is not a pipe dream. Does that mean that web3 stocks are items in which you should consider investing?
There are several factors to consider. Namely, what companies should keep you an eye on? What sets them apart from their competitors? In this detailed guide, we will try to offer you the fastest route towards your financial goal.
What is web3?
What is the fabled web3 anyway, and how does it connect to cryptocurrencies? Simply put, it is the dream of one-day having blockchain tech and its principles of decentralization spearheading a new internet.
What’s the meaning behind the term? Colloquially, the first iteration of the internet, in its most disorganized style, was branded Web 1.0. The Dot-com boom of the 2000s is thought of as Web 2.0. The third, improved version of this would involve a greater degree of freedom, greater power, and increased privacy for regular users through the use of blockchain technology.
Big-tech and web3 applications
Web3 applications are still in the early days of conceptualization. It is increasingly clear, however, that big tech companies need to innovate. Some tech firms have already declared their interest in blockchain tech, and there are others that are experimenting with aspects such as AI and virtual reality.
Some tech giants are still standing on the sidelines. However, increased competition and technological advancement will likely force them to take a stand. This provides more motivation to invest in web3 stocks.
5 best web3 stocks
There are many web3 business opportunities worth considering. With a view to trimming some of the fat and, hopefully, making your decision easier, we will now look at 5 Web3 stocks that check all the preliminary boxes. All the companies on the list have earned a good degree of public support from the crypto community. However, we urge you to also do your own research and take responsible, level-headed decisions.
1. Coinbase Global, Inc. (COIN)
Every industry benefits from flagship companies that the public trusts and that showcase the ecosystem’s most positive traits. With nearly 90 million users, the Coinbase exchange is one such business for crypto. In 2012, Coinbase was founded by former Airbnb engineer, Brian Armstrong. In the subsequent years, it became one of the go-to places for trading crypto. It is responsible for serving as a gateway into the crypto world for millions of users. This has made it successful. Very successful. In fact, starting with 2020, Coinbase registers a yearly revenue of over $1 billion.
Coinbase is directly involved in Web3.0 in quite an obvious way. On the one hand, of course, it indirectly supports many of the developing blockchain companies by helping sell their native tokens.
But there is more. Coinbase’s venture capital, Coinbase Ventures, has directly supported the development of blockchain companies such as Solana or BlockFi, among others. These are crypto businesses that operate on the basis of helping establish the infrastructure of web3.
Furthermore, Coinbase has wisely chosen to attack itself on the decentralization concept shared by most web3 enthusiasts. In May 2022, Coinbase allowed select users the possibility of accessing DeFi and other apps through the company’s official mobile app. There’s also a hot wallet app available. It has a number of functionalities, for example, being able to purchase NFTs directly from marketplaces such as Open Sea. However, this has a co-custodial setup, meaning that the user’s personal information is also stored by the crypto exchange.
Is Coinbase stock a good investment in 2022?
Coinbase shares can be traded just as with any other public company. While Coinbase stock has seen a decrease in recent months, much of its popularity is intrinsically tied to the appeal of cryptocurrencies. This is an important detail to consider before making your investment decision.
2. Apple Inc. (AAPL)
Had you invested $1000 in Apple stock a decade ago, you would likely feel pretty good about yourself. Your stock would be, at present, worth nearly eight times your initial investment. The decision would have been even more profitable had it been taken a few decades ago.
This is all because, indeed, Apple has been involved with some of the most exciting technological innovations of recent decades. It has also been one of the most profitable companies in the world. In 2021, for example, Forbes, once again, listed Apple as the most successful American company.
So, what does all of this have to do with web3? While Apple has not directly called out its support of blockchain tech, observers remark that this may merely be a matter of time. Indeed, for decades, Apple has led the way or, at least, moved alongside tech developments. Simply put, it is hard to imagine that the company responsible for the iPhone, iPad, and Mac computers would be missing from this brave new world.
Yes, over the past couple of decades, Apple positioned itself as a technological maverick. However, no company can afford to ignore the market and its competitors. Samsung, for example, has seemed to embrace blockchain technology and modern DApps. Apple has not responded in the same way, but it will unlikely be unable to do so for much longer. Apple Pay integrating web3 is a highly anticipated move from the company.
Is Apple stock a good investment in 2022?
Naturally, its price fluctuates significantly over a period of time. However, Apple stock has been, in many ways, the flagship when it comes to this type of investment. After all, this was the first company to be worth $1 trillion in value, and two in three Americans own at least one Apple product. It is difficult to envision web3 without the involvement of Apple in some important capacity.
3. International Business Machines Corporation (IBM)
Speaking of tech giants, we would be remiss if we didn’t mention IBM stocks. The company was started in 1911 and, in many ways, remains the most famous computer brand in the world. For over a century, IBM has been among the leaders of computing companies. However, in many ways, IBM is also a sleeping giant. It has long ago taken a step back from the commodity markets and moved into higher-margin services. Still, the company has already shown its intentions of moving along with the times. Its involvement in web3 seems like an inevitability, as the company still has plans for web3 intagration.
IBM continues to be a leader in data and analytics. The company also continues to sell computer hardware, middleware, and software. In terms of overall value, IBM is still one of the largest companies in the world, alongside the likes of Microsoft, Amazon, and Google.
Is IBM stock a good investment?
It is IBM’s commitment to studying artificial intelligence and analytical software that makes the company of particular interest to our discussion. These efforts will likely lead to tremendous development for web3. The ultimate goal is to help foster a much greater level of internet connectivity. In other words, IBM could help radically transform the way in which computers lessen the burden on human employees in the future. The company has long been involved in scheming a way toward leading the world into an even more highly automated future.
The history of the company, as well as its plans, help make it a hot prospect for the future. IBM could well retain its status as one of the most important companies in the world even as web3 becomes a reality.
4. NVIDIA Corporation (NVDA)
Nvidia is a computer company that will, most likely, be intrinsically linked to the development of the fabled web3. Yes, Nvidia is primarily known for the graphics processing units (GPUs) that it produces and that is used by gamers throughout the world. However, the company has also benefited tremendously from the rise of the crypto market. They are responsible for many of the miners that are helping maintain the crypto ecosystem in working order.
Nvidia began its activity in 1993. It was known for developing its innovative chipset technology. The Californian company soon became the global leader in the production of integrated circuits that are widely used by gamers in both consoles and personal computers.
In recent times, Nvidia has invested massively in the pioneering fields of artificial intelligence and machine learning. The company refers to this endeavor as deep learning. It involves, among other things, the automated use of speech recognition, object detection, language translation, and others.
Is Nvidia stock a good investment?
Ultimately, Nvidia hopes to greatly increase automatization. This may appear to have potentially harmful effects on workers in the short term. After all, it would mean that more and more tasks will be carried out by machines. However, there is certainly a silver lining to all of this. Enthusiasts of the experiments believe that this will lead to a great degree of decentralization in web3. At its best, the use of AI will help replace various third-party intermediaries from the crypto ecosystem and elsewhere.
While a lot of this may well be in its experimental stage, clearly, the company is dedicated to moving along with the times and helping to remain a highly innovative company in the future.
5. Unity Software Inc. (U)
In 2004, in Denmark, Unity Technologies was founded. The company later relocated to San Francisco and became one of the most important names in the video game industry. This is largely due to Unity, their licensed game engine. Many of the world’s most popular video games and applications use it.
This was big enough business as it was. However, in 2018, Unity Software announced plans to expand aggressively. This means that they’ve invested large sums of money in developing applications for new platforms and consoles. They have also turned their attention toward virtual reality. And, yes, they are very interested in web3, in particular in the so-called Metaverse.
The Metaverse, of course, is a proposed future iteration of the internet where virtual reality and augmented reality will be used on a large scale, facilitating connectivity. Many of the world’s leading tech companies have shown a willingness to develop their centralized versions of this. Other developers will respond with decentralized alternatives. However, they will all need assistance from the likes of Unity Technologies.
Yes, it looks almost certain that Unity will be an important player in web3 gaming. They will be one of the companies providing the development tools to turn this dream into a reality. And, naturally, this will have a large bearing on the manner in which the company itself will develop.
Is Unity stock a good investment?
Yes, it is true that the stock price for Unity has decreased over the past year. However, the same can be said of some of its direct competitors, such as Matterport. The underwhelming results may well just be a reaction to the public cooling some of its previously inflamed interest in the Metaverse. Still, with so many applications involving this virtual reality internet world already underway, there are reasons to be optimistic and to have this on your list of web3 stocks to watch out for.
Why should you consider web3 stock investments?
Web3 remains a very novel concept. Most companies are still learning how to best implement experiences, products, and solutions that will engage the audience for a long period of time.
However, the conviction is there, and numerous reasons are being poured into the development of web3 solutions. There’s no doubt that web3 will become a significant part of our lives in the future, and there are several major companies that are working on related initiatives.
Web3 stocks are kicking off, and it’s going to be interesting how the space plays out. Learn about the latest news and trends in web3 through the BeInCrypto Telegram group.
Frequently asked questions
Outside of crypto assets, you can invest in web3 by purchasing stocks of companies developing web3 solutions. Some examples include Apple, Coinbase, and Nvidia.
Several companies are working on web3 solutions and products. Among them are Apple, Nvidia, and Unity.
Well-run, profitable companies always offer the best value for their stocks. Companies such as Nvidia and Unity Software have already shown an interest in web3. Coinbase can also prove successful as the crypto space continues to expand. It is certainly also worth paying attention to the stock of companies such as Apple and IBM that will most likely be involved in developing web3 applications.
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