Let’s go no further. According to a Fortune report, there is in fact a “land grab” going on, and it apparently has no end. It has created a sort of real estate bubble in which the cheapest Metaverse plots available are $13,000.
Alright, let’s back up a bit please, because for that kind of money you can buy an apartment in Mexico City or a rural house in Bulgaria, Italy, Spain, France, Portugal or in Greece. You do not believe it ? Check out the property under 20K and see for yourself. Take a look at this opportunity for two houses on 200 square meters of land in Sevilleja de Jara, Spain, for example.
But wait! In November last year, Republic Realm, a virtual real estate developer, paid $4.3 million for a Metaverse property from video game company Atari. According to the Wall Street Journal, this was the largest metaverse property sale ever published.
A week before this record purchase, Metaverse Group, a subsidiary of Tokens.com, purchased digital land in the so-called Decentraland Fashion District for around $2.3 million.
These digital real estate deals highlight the growing appetite for Metaverse land, the online 3D space of interconnected virtual worlds where people’s digital twins can socialize, work, shop and play games.
Late last year, Grayscale, one of the world’s leading digital currency investment firms, said the metaverse had the potential to become a $1 trillion annual revenue opportunity for advertising. , digital events, e-commerce, commerce and crypto and hardware.
Facebook could arguably have triggered the surge in interest in the Metaverse because its controversial founder Mark Zuckerberg officially announced a full rebrand in October last year, including changing its name to Meta.
A highly successful Australian serial entrepreneur who has various NFT projects in October, at the DeFi Live London 2021 event, told a group of crypto enthusiasts that he would never invest in physical property again, only in the metaverse because of its higher profit potential.
A Fayre Prediction of the Metaverse
Luis Carranza, CEO and Founder of Fayre, predicted that 2022 will be a multi-billion Metaverse year, adding that he invested a total of 42 ETH (about $150,000) in plots with Sandbox and Decentraland. “I purchased a Sandbox 3×3 plot from Beeple, the artist who auctioned an NFT collection for $69 million at Christie’s.
“Throughout 2022, you can expect to see even bigger Metaverse land grabs and more record-breaking digital real estate deals,” said the head of Fayre, a booming NFT marketplace for brands, fans and consumers.
“Digital property owners are going to see greater revenue from rentals of their virtual properties,” he said. “The architectural development of buildings in the Metaverse will see huge progress this year, and while hard to believe, we will also soon see buildings being sold in the Metaverse.”
Currently, selling buildings, apartments or houses is not yet possible, but renting is already underway, Carranza said.
“You can already own in the metaverse,” he pointed out. “Major brands are already buying land, but others may see the advantage of renting to build virtual stores to sell their physical products.”
Fayre already has concrete plans to build museums for famous football clubs and other sports brands around the world. Virtual locations where fans can visit and view digital exhibits of their favorite players, historic images of famous goals, and purchase NFTs with utility beyond our imagination.
“Facebook alone is investing over $10 billion in the creation of its Metaverse project, and it’s a clear indication of where Web3 and virtual reality are headed,” Carranza said. “Yes, building skyscrapers, houses and malls will be possible, and they will be sold.”
IoTeX shares its vision of the metaverse
Jing Sun is a highly experienced international investment expert with a track record that spans over 13 years. She leads investment and ecosystem efforts for IoTeX, a top 90 blockchain project founded in Silicon Valley in 2017. Her company’s vision is to connect the physical and virtual worlds with a focus on MachineFi, the estimated $12 decentralized machine economy. trillion by 2030.
“Demand for digital assets will continue to grow dramatically,” Sun said. “And as people spend more time in the virtual world, that growth will be even greater.”
Sun further explained that “ownership of digital assets has expanded from digital identity, digital goods to digital properties or land. NFTs are behind the recent boom in virtual real estate. Non-fungible tokens facilitate the advancement of liquidity and VR/AR technology, as they bring an immersive experience into the virtual world.
“The challenge now is how to assess scarcity in the virtual world,” Sun added. “Or is there a scarcity in the metaverse when teleportation can get players anywhere and physical boundaries don’t really exist? The location seems to be irrelevant anymore, and what matters most, now visit pull-ups from the public around the world.
Sun is also a co-founder of IoTeX. She has an expert understanding of the direction the virtual world is taking and the vitality of the metaverse when considering that automation, robotics, and artificial intelligence are advancing at lightning speed.
“We have done our research at IoTeX and know that shortly the workforce will be 40% automated or represented by machines, which will certainly shape the way people live and work in the future,” said she declared.
“While machines and robots will produce the essential goods for physical needs, this will free up human labor. And people will likely make their living primarily by making innovative products or providing virtual services from the metaverse.
More profitable than traditional real estate
Jason Fernandes, a globally recognized crypto and blockchain expert with a world of experience in tech innovation, also weighed in by saying he’s already heard of architects designing buildings in the metaverse that will be rented out. .
“Virtual apartments, malls and offices are already present in the metaverse. Soon, luxury clothing and watch stores will also be represented in the metaverse,” said Fernandes, co-founder of AdLunam, a one-of-a-kind IoT launch pad that uses unique models to show attention and engagement. to win to democratize early-stage crypto. investments previously inaccessible to people without great digital asset staking powers.
“Over the next few years, as the metaverse landrush takes firm root, the virtual real estate market may well prove to be far more profitable than traditional real estate development, real-world sales and rentals,” he said. he adds.
Credibility hard to speculate: Mati Greenspan
Quantum Economics CEO and founder Mati Greenspan said his team is very bullish on Sand and Mana and has been for the past few months.
“Although our team has been very bullish on Sand and Mana, Quantum Economics has not yet invested in any virtual earth,” said Greenspan, a highly regarded crypto and blockchain market analyst. “The dynamics of this market make it incredibly difficult to speculate on what future value might look like.
“Unlike Bitcoin or physical real estate, there is no maximum supply,” he pointed out. “Although metaland is not completely fungible, how important will location be in a world where you can connect anywhere instantly? Rest assured, if we make a purchase, it will be to build on the ground not to flip a cookie.
Final “virtual” thoughts
As with physical real estate, Metaverse property is more expensive depending on where it is located, and that really makes sense, and Andrew Kiguel, co-founder and CEO of Tokens.com agrees.
“It’s location, location, location,” he told The New York Times. “A plot of land in the busy city center is worth more than a plot of land in the suburbs. There is a scarcity value.
Hrish Lotlikar, co-founder and CEO of SuperWorld, also spoke to the NYT about it. “You can buy places you like, whether it’s Central Park or the pyramids in Egypt. What you are buying is the virtual terrain that covers the earth in those places.
Real estate investments in the metaverse are still largely speculative, so it’s still too early to know for sure if the current boom is the next big thing or the next big bubble. What can be said for certain is that with Facebook becoming Meta and remote working becoming more prevalent globally, real estate in the metaverse may soon become a better investment than in the real world.
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