Web3 may have its roots in cryptocurrency, but the industry has transcended this asset category and no longer warrants the lingering and limiting association. Beyond offering token trading, Web3 can provide a wide array of services, products, and experiences for investors. Prominent Web3 investment options include blockchain startups, stocks, software development, and cash management solutions from innovative platforms like WELF.

A promising blockchain startup can be a lucrative investment. Early entrants like angel investors can gain substantial returns if the project succeeds. For example, they can invest in platforms developing cryptocurrency software or businesses exploring dApps, blockchain, or other emerging technologies. Buying stocks in companies building Web3 technology can also be viable. These include AMD, NVDA, and IBM. Beyond stocks, Web3 investors can buy into crypto companies’ initial DEX offerings (IDO).

Bridging the gap between traditional and modern investments

Emerging platforms are expanding offerings beyond banking services with a focus on a holistic care approach, empowering clients to navigate both conventional and digital financial landscapes with confidence and ease. WELF’s cash management solution, WelfYield, is building a bridge between traditional wealth management and the possibilities digital assets offer. The WELF ecosystem combines expertise, advanced platforms, and innovative partnerships to deliver a contemporary private banking experience customized to clients’ needs. Its dedicated desk of senior private bankers is not unlike those at leading financial institutions like JPMorgan, UBS, and Citibank, which specialize in traditional financial investments. WELF takes this approach one step further by offering consulting for digital assets and developing innovative tokenized and digital investment products.

The product offers yield-generating opportunities that can ensure a steady stream of income, similar to money market funds and bonds, under the slogan, “Your wealth deserves more.” The WelfYield Index combines the best money market products from BlackRock, Vanguard, and Fidelity, which have government backing and offer diversified exposure and competitive yields. The product will be available on the WELF Platform or via traditional channels tracking the index.

The product guarantees smooth integration with existing financial systems via unique Bloomberg tickers and ISIN numbers. It’s available in multiple currencies, and the investment team leverages rebalancing and strategic allocation to optimize returns.

The potential of investing in Web3 ETFs and DeFi protocols

Examples of Web3-themed ETFs include Amplify’s BLOK ETF and Siren’s Nasdaq NexGen Economy ETF. BLOK invests in blockchain companies such as Coinbase, MicroStrategy, and GMO Internet Group. Siren’s ETF tracks the NASDAQ Blockchain Economy Index. It also has holdings in Coinbase, MicroStrategy, and Marathon Digital. It is passively managed, while BLOK is actively managed.

Web3 protocols that offer opportunities to stake or lend crypto can be a lucrative investment. Investors become market makers to earn fees and rewards. They can lend crypto to other participants in liquidity pools. The interest paid to lenders is usually much higher than the rates traditional banks offer on crypto loans, but these investments are also riskier.

Individuals who own ether or another proof-of-stake crypto can stake it and earn rewards. Staking allows blockchains to progress and helps validate transactions. Staking rates work similarly to interest on deposits, but they are usually paid in the form of an annual percentage yield. Anyone can be a market maker in DeFi: all they need to do is deposit two cryptocurrencies into a liquidity pool. They earn passive income as traders buy and sell from the designated pool.

Seeking returns through AI companies and the metaverse

Investors can seek returns through AI companies like Microsoft, Adobe, Apple, and Amazon. These companies are devoting resources to AI, which plays an essential role in Web3.

The metaverse runs on Web3 technology. Investing in metaverse stocks through the Global X Metaverse ETF is a potentially feasible option. Examples of metaverse tokens include Internet Computer (ICP), ApeCoin (APE), Decentraland (MANA), and The SandBox (SAND).

NFTs, DAOs, L2, and content platforms drive Web3 expansion

As Web3 rapidly evolves into a multifaceted industry, key areas driving its expansion include non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), and enterprise adoption. NFTs initially gained attention in digital art and collectibles but now extend to gaming, ticketing, real estate, and intellectual property rights. Gaming integrates NFTs for player-owned economies, while real estate is exploring tokenized property ownership.

Enterprises are leveraging Web3 tools to enhance supply chain transparency, secure data sharing, and enable tokenized incentives. Companies like IBM and Microsoft incorporate blockchain for logistics and cybersecurity.

DAOs enable decentralized governance for projects, communities, and funding initiatives. Members use tokens to vote on proposals, creating transparent and democratic systems. Examples include venture capital like The LAO and community-driven projects like Gitcoin.

Ethereum Layer 2 solutions like Optimism and Arbitrum enable faster and cheaper transactions, fostering more complex applications. Protocols like Polkadot and Cosmos enhance connectivity between different blockchain ecosystems.

Mirror (for writers) and Audius (for musicians) are platforms that allow creators to monetize content directly without intermediaries. Web3-based social networks like Lens Protocol prioritize user data ownership and privacy over centralized alternatives.

The evolution of Web3 showcases its potential to disrupt existing industries and create new ones. Its growth into a rich, diverse ecosystem reflects its capacity to decentralize power, enhance transparency, and foster innovation across sectors. With that, the potential for lucrative investments in unique products and services becomes immense.