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Investors snap up metaverse real estate

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Real estate investing in the metaverse still is highly speculative, and no one knows for sure whether this boom is the next big thing or the next big bubble.

In a few years, technologists believe the metaverse will mature into a fully functional economy, providing a synchronous digital experience as integrated into our lives as email and social networking are today.

Money in these digital worlds is cryptocurrency

The blockchain — a digitally distributed public ledger that eliminates the need for a third party, such as a bank — powers finance in these virtual worlds, and cryptocurrency is the currency of choice.

Anyone entering a virtual world can buy or trade nonfungible tokens, or NFTs. Collectibles based on blockchain technology that are digital representations of physical items, such as art, music, and even houses. The NFT is a unique piece of paper that serves as proof of ownership.

In recent months, the volume of commercial real estate transactions in the metaverse has increased.

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The Metaverse Group has a real estate investment trust

The Metaverse Group has established a real estate investment trust with plans to develop a portfolio of properties in Decentraland as well as other realms such as Somnium Space, Sandbox, and Upland. Although the internet is infinite, virtual real estate is not — Decentraland. For example, is a collection of 90,000 parcels of land measuring about 50 feet by 50 feet each. According to Mr. Gord, there is a belief among investors that there is gold in those pixelated hills.

Tokens.com recently completed a larger land deal in Decentraland’s fashion district for $2.5 million. The company plans to develop the area into a virtual commerce hub for luxury fashion brands, similar to Rodeo Drive or Fifth Avenue, according to the company, which claims the real estate transaction was the largest in metaverse history.

Metaverse is worth up to ten times as much as it cost to purchase

Mr. Kiguel estimates that his metaverse portfolio is worth up to ten times what he paid for it, and much of his reasoning will sound familiar to anyone who has ever bought or sold real estate.

Only a few digital marketplaces exist where investors can buy and sell real estate, and they all use their own cryptocurrency. For example, Decentraland’s is known as MANA. People can also browse NFTs, including land plots for sale, on Decentraland’s marketplace. Mr. Kiguel described it as “almost like a multiple listing service.”

Wave, a company that produces interactive concerts such as Mr. Bieber’s, makes money from virtual merchandise and brand sponsorships for the events. Which are held in neutral zones rather than a digital arena. Although the company has not yet monetized real estate. Adam Arrigo, a co-founder and CEO, said he is looking into the possibility.

“Platforms like Decentraland and Sandbox are pioneers in credentialing these plots of land, these storefronts,” he explained. “What we do is going to become a lot more mainstream over the next few years.”

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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