Investors spend millions of dollars to buy "land" in the metaverse virtual universe

Investors spend millions of dollars buying “land” in the metaverse virtual universe

The real estate market is growing “hot” in many countries That’s what everyone knows. But the Covid-19 pandemic also created another, lesser-known “land fever”…

Artwork.

According to CNBC, some investors are spending millions of dollars to buy plots of land, not at upmarket addresses in New York or Beverly Hills. These “lots of land” don’t even exist on Earth.

Instead, these are virtual plots of land that exist on the Internet, in a virtual world. what the tech world calls the metaverse. The price of such plots has increased by as much as 500% in the past few months, since the world’s largest social networking company Facebook announced it would “all hands” on virtual reality (VR). To show this determination, Facebook even changed the company name to Meta Platforms.

” THE NEXT CHAPTER AFTER SOCIAL NETWORK”

“Metaverse is the next chapter after the Internet social,” CEO Andrew Kigue of Tokens.com said. This company specializes in investing in virtual real estate and NFT digital assets. “You can go to a carnival, you can go to a concert, you can visit a museum in that world.”

In the virtual world, real people can be interact with each other through cartoon-like characters called avatars, similar to a real-time video game involving many players. Currently, people can access the virtual world with an ordinary computer screen, but Meta and other companies have a long-term vision of building a 360-degree virtual world that everyone will access. through VR headsets like Meta’s Oculus.

A recent report by digital asset management company Grayscale estimates that virtual worlds could evolve into a business worth 1 trillion USD in in the near future. Some big artists like Justin Bieber, Ariana Grande and DJ Marshmello have performed through their avarta. The rich lady Paris Hilton even celebrated New Year’s Eve on a virtual island of her own.

Mr. Kiguel’s company recently spent nearly 2.5

million USD to buy a plot of land in Decentraland, one of the most famous metaverse today. “Price has increased by 400-500% in the past few months,” said Mr. Kiguel.

Another famous metaverse is Sandbox, where Janine Yorio’s virtual real estate development company is located. Republic Real recently spent a record amount of ISD 4.3 million on a virtual plot of land.

Yorio told CNBC that her company has sold 100 virtual private islands in the past year. last year, for 15,000 USD per island. “Currently, each such island costs about 300,000 USD each, about the same as the average price of a house in the US,” Ms. say.

A RISKING INVESTMENT
“For some people, the digital world is just as important as the real world”, real estate agent Oren Alexander of Miami told CNBC. “It’s not about what I or you believe in, it’s about what might happen in the future.”
Mr. Kiguel said, like real estate in the world In the real world, the most important metaverse real estate is location. “There are areas where you go first when you and other people gather in the metaverse. Those places will definitely have much more expensive land prices than areas where there are no events,” said Mr. Kiguel.
For example, rap singer Snoop Dogg is building a virtual mansion on a plot of land in Sandbox. Someone paid 450,000 USD to buy a lot next to it to become the neighbor of the famous rapper.
“I think it’s very important who your neighbors are,” said Ms. Yorio. “It’s like a club, and you want to be among like-minded people.”
Purchase of a virtual piece of land is quite simple, can be directly from platform or through an investor. Investors can build on the land and bring that location to life. “You can decorate it, change it, renovate it. All in code,” said Ms. Yorio.
However, Ms. Yorio warned that investing in digital real estate is a risky field. “This is a very, very risky business. You should only invest capital if you accept that you can lose,” she told CNBC. “The sector is highly speculative, and also blockchain-based. And as we all know, cryptocurrencies are highly volatile. But the potential for profitability is also very large.”
Professor of real estate theory and practice Mark Stapp at Arizona State University agrees with this view. “I wouldn’t invest in this thing if I was afraid of losing money. If things continued this way, it would be a bubble. Putting money in it means you are buying something that has nothing to do with the real world,” said Mr. Stapp.
Anhui
VnEconomy

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