Metaverses :: Virtual Worlds. Where is my access?
Metaverses :: Virtual Worlds. Where is my access?
Sale of Virtual Land is picking up, what's in it for you to be worried about
Today we are talking about buying land in the Metaverse, If you have never heard about this before then this is going to blow your mind.
The HYPE?
Metaverse land is the new big hit in the crypto community, as leading virtual worlds recorded upwards of $100 million in NFT land sales in the past week. According to DappRadar data, activity for The Sandbox, Decentraland, CryptoVoxels, and Somnium Space is booming.
People are spending Millions of Dollars to buy Virtual Land using Virtual Money.
Source: Gizmodo
Metaverse is supposed to be infinite, there are not just one but many. So why is it that buying land in a place that’s limitless makes any financial sense at all?
It’s a land inside the Metaverse which is just like the land in the physical world, but it’s just that you cant go there.
People are spending a lot of money on the Metaverse. Here are a few examples,
Metaverse Group, a Canadian Investment Company in the Digital Space. They bought 116 parcels of land in Decentraland, each with 52.5 sq. ft., and a total of 6090 sq. ft., roughly the size of 1.35 Basketball Courts or 2.16 Tennis Courts. They apid 618,000 MANA, a cryptocurrency which at today’s cost is $2.02 Million (as on date of publication)
Republic Realm, a Digital Investment Company, has spent $4.3 Million for buying virtual land in Sandbox. They have created a Megayacht, with a Hot-Tub, DJ Pool, and 2 Helipads. This yacht was sold at $650,000
Source: Repulic Realm
The OPPORTUNITY?
It really looks like hype and speculation currently, but we will try to unveil the mystery to see if it’s a bubble or something else.
Grayscale, a multi-billion dollar investment company says that the Metaverse is a Trillion-Dollar Market Opportunity
Source: Coindesk
Land plays a significant role in creating this Trillion Dollar yearly opportunity. So the answer is that it’s not limitless, it’s limited. The digital land is limited in the same way as there is a limited amount of Digital Bitcoins. Being digital doesn’t mean that there is an infinite amount of them.
Physical Land has its own advantages. Building houses, performing agriculture, opening shops, and many others. While we all know that unwanted land in the physical world is also v.v. cheap. Not all land in the physical world has value, and it depends on its location and the network effect.
A short-term strategy is to buy some land and sell it on profit to some who wants to pay more for it.
But the long-term strategy and the prime reason people are spending Millions of $ on land is that they are speculating that the land will be what Facebook is today, where millions of people will gather together and do all sorts of activities.
It’s like Central Park, a couple of centuries ago, when people didi’t know what the land would value, and were speculating the same. Similarly, people are now thinking that their virtual land will eventually become a popular space in the Future, and they can make money by charging fees to people who visit that land.
Source: iStock
People can host a Live Event or a Concert. Justin Beiber last month in Nov, put on a freak convert in the Metaverse in collaboration with Wave, a virtual concert company. It was a publicity stunt for the company that created it. But millions of people came to see it live. It was not perfect but everyone enjoyed it.
Snoop Dogg, partnered with Sandbox to build a virtual mansion that will house his NFT collection. We can go inside, interact with him and he is going to perform converts in the Metaverse for his followers.
Source: Musically
Now people are buying land around his house, prices for which is definitely going to increase in the future and owners are going to make some money.
Source: Decrypt
Making money with Virtual Games?
The place where most people will make money is Video Games.
According to a super popular game “Axie Infinity”, which has 360k players in the world but mostly coming from Africa and Philippines, players can earn more than $2K/month. It’s a Play to Earn game and successfully playing this game can help you earn SMOOTH LOVE POTION (SLP) which is backed by real dollar value. They can do wonders when they go global and become huge like Minecraft, League of Legions, and Dota. Below is a great fact, that encourages us to think beyond normal.
The way that land is integrated into these Video Games is that game developers create these plots of land as NFT’s for players to buy, players can upgrade their characters and sell them to make money.
The highest sale of a plot of land in Axie Infinity which is called LUNACIA sold for $2.5 Million. It was one of the genesis lands and there are only 220 of these, and they come with their own special perks and benefits for players to level up its creatures.
There is another popular Metaverse called CryptoVoxels, which is on the Ethereum Blockchain and allows people that own land to create virutal museums and galleries to display their NFT’s. Isn’t it pretty cool?
How to BUY?
Quintessential to ask before what to buy is WHO to buy the land from. And the answer is, the land developers, people who are developing the virtual land are selling the land too.
Also, there is going to be not one Metaverse but there will be many. One popular one was LUNACIA, from Axie Infinity, which we have already covered.
There are 2 other most popular ones,
Sandbox, created in 2012, and have a limited amount of 166,000 plots of land. They have partnered with Snoop Dogg, Ubisoft, Softbank, Opensea and have raised $95 Million in their first round of funding run by Softbank.
Decentraland, created in 2015, and have a limited amount of 90,601 plots of land and has raised $25.5 Million to date. They hosted a live event with 80 artists.
Meta, FB’s Metaverse approach, and many more will join the club as publicly Traded Companies would want a pie of the profit too. But these are going to be centralized, more controlled, and against the law of creating decentralized communities, and the Metaverse is not about collecting data. There are going to be multiple Metaverse projects which will be competing for your attention.
RISKS and DOWNSIDES?
We haven’t come across anyone who has made some dollars flipping these lands and it’s a high-fidelity version of a VR. There are multimillion-dollar investors who are trying to speculate and giving it a push to sell at a profit.
The only guaranteed winners are people who are selling the land. We are very soon and don’t know if people playing Axie will become millionaires of the future. We all have to watch.
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