Is it worthwhile for “real estate speculators” to enter Metaverse for real money and purchase virtual real estate?

A piece of virtual land on the virtual game platform Sandbox was sold for $4.3 million, setting a new record for the transaction price of “Metaverse” virtual real estate.

At present, the industry is full of controversy regarding the value of virtual real estate. Some gamers believe that the virtual real estate model is the ultimate goal of future assets. However, some game practitioners bluntly said that it is purely cutting leeks and has no development value.

With the purchase of tens of millions of virtual real estates with real money, Metaverse has truly “broken the circle”!

Virtual real estate game player Wang Le (pseudonym) has spent about 5 million yuan on virtual real estate purchases on major virtual platforms. On the evening of December 8th, when Wang Le talked about the virtual real estate model with the International Finance News, his words revealed his vision. He believed that the virtual real estate model is the ultimate goal of future assets, which is equivalent to the discovery of the “New American World” by mankind. Explore the new world.

As a well-known game player in the entertainment industry, singer JJ Lin is also the owner of virtual real estate. It is reported that Lin Junjie bought three pieces of “land” in Decentraland for approximately US$123,000, or approximately RMB 784,000.

Regarding the popularity of virtual real estate, many game practitioners “poured cold water” when interviewed. They believed that virtual real estate was purely cutting leeks and had no development value. Even if it is valuable, there is no physical value.

Where is the Metaverse shrouded in controversy in the future?

Buying virtual real estate at sky-high prices

Recently, a piece of virtual land on the virtual game platform Sandbox was sold for US$4.3 million (approximately RMB 27.39 million), setting a new record for the transaction price of “Metaverse” virtual real estate and breaking the previous Decentraland platform’s 243 A previous record of US$10,000 (approximately RMB 15.48 million).

What is the concept of virtual real estate worth 27.39 million yuan? If you look at the house prices in Shanghai, 27.39 million yuan can buy a boutique commercial house of about 228 square meters in size of 120,000 yuan per square meter in Jing’an District.

The buyer of this sky-high virtual land is Republic Realm, a professionally managed and diversified digital real estate NFT investment fund company, limited to a maximum of 99 qualified investors. At present, it is only an invitation system and focuses on virtual land in existing virtual spaces. The acquisition, management, development and sales of the company, including investing in Decentraland, The Sandbox, Cryptovoxels , Somnium Space, Axie Infinity, etc., while allocating funds to new projects and new opportunities.

Republic Realm believes that the popularization and adoption of decentralized virtual worlds has promoted the development of new asset classes, such as digital real estate investment. At the intersection of emerging technologies such as virtual reality and blockchain, developers, investors, and hobbyists are creating a vibrant digital real estate market.

A sandbox white paper obtained by related media shows that LANDS land is a virtual token supported by the blockchain (ERC-721 standard for NFTs), which is represented as a physical package of the sandbox The Sandbox Metaverse. LANDS allows players to own a part of the Metaverse so that they can host content (assets and games). The Sandbox Metaverse is based on a map of 166464 pieces of land (408*408). Land is the physical space in the Metaverse that players use to create games and profit from it.

Among the players of virtual real estate, a familiar name-Lin Junjie appeared. Recently, well-known singer Lin Junjie said on Twitter that he also bought three virtual lands on Decentraland. It is reported that Lin Junjie bought these three pieces of “land” for about 123,000 US dollars, or about 784,000 yuan.

Is it worthwhile for "real estate speculators" to enter Metaverse for real money and purchase virtual real estate?

Limited room types are upset

Compared with foreign countries, China is relatively backward in the development of virtual real estate platforms. The virtual social product “Rainbow Universe” under the umbrella of Tianxiaxiu is at the forefront of the domestic frontier in actively deploying the “real estate” of Metaverse.

Is it worthwhile for "real estate speculators" to enter Metaverse for real money and purchase virtual real estate?

Huaan Securities released a research report that pointed out that Honnverse Rainbow Universe is a 3D virtual social product. It uses the 3D virtual planet (P-LANET) of the Z era as the background to build virtual identities, virtual images, virtual spaces, virtual props, virtual Social, will unite global social celebrities to create an immersive pan-entertainment virtual life community for global users, and provide users with application scenarios such as use and communication based on NFT assets. The company introduces cutting-edge technologies such as blockchain and virtual reality into the new economy of celebrities, opens a new model of decentralized celebrity economy, redefines social assets of celebrities, and explores and creates new display platforms and monetization methods for celebrities .

On November 18th, Li Meng, the founder of Tianxia Show, issued an open letter on the 11th anniversary of Tianxia Show. He stated, “Rainbow Universe is an inevitable product of the creator’s economy entering the social 4.0 era. The connotation of the virtual world is constantly enriched. The ticket to the next generation of the Internet will keep us close to the ultimate dream of social technology and build a new content creation ecosystem that connects users, creators and brands.”

Li Meng mentioned, “If you are a user, you will achieve a social experience from two-dimensional to three-dimensional and digital social relationships; if you are a content creator, Rainbow Universe will open up content creation platforms, creators’ content production, The application of tools and the realization of revenue can be more convenient and smooth; if you are a brand merchant, all kinds of parallel realities and even beyond real marketing scenarios can be realized.”

Looking forward to the future, Li Meng said that he believes that a “building” of the world show will be built in the Rainbow Universe soon. All employees of the world show will work together in the virtual world of the Rainbow Universe for one day. In the future, the Rainbow Universe will also be able to There are more companies and institutions. This is also in line with China’s future low-carbon environmental protection theme. I believe that companies will go further in this way.

Is it worthwhile for "real estate speculators" to enter Metaverse for real money and purchase virtual real estate?

A reporter from “International Finance News” tried to register for the Rainbow Universe account and found that it is impossible to log in to the Rainbow Universe without a virtual real estate. It is understood that the game is still in the closed beta stage. Only users who own a house can log in to the Honnverse APP, and other users will be able to log in after Honnverse is officially opened.

It is reported that Rainbow Universe opened an appointment on October 21, and the number of 28-hour appointments exceeded 50,000. The appointment can get a login coupon for subsequent star production activities.

According to official sources, Honnverse has issued a total of 350,000 virtual houses. These virtual houses have 13 types of houses according to the different landforms of planet P. The circulation and scarcity of each type are different. The houses are divided into SSS, from high to low. SS, S, A, B level, the higher the level, the more rare. Among them, 20,000 sets are airdrops, accounting for 5.7% of the total number. That is to say, only 20,000 houses can be obtained for free in the early period, and these 20,000 sets will be airdropped in five batches at different time periods. At 20:00 on the evening of October 28, the first round of airdrops will start, and the quantity is limited to 500 sets.

These limited-release room types have temporarily formed a “house speculation fever” on Xianyu. Prior to this, the most exaggerated set of Rainbow Universe virtual real estate “SS Sea Island” even fetched 999.99 million yuan. Up to now, there are still many virtual real estates on Xianyu with prices exceeding 10,000 yuan.

Is it worthwhile for "real estate speculators" to enter Metaverse for real money and purchase virtual real estate?

“Cutting Leek” VS Unlimited Value

So far, does the high price of virtual real estate match its real value?

From the perspective of game development, virtual real estate games are still in the stage of development. An employee of a well-known foreign game company told the “International Finance” reporter that the company has not yet set foot in the development of virtual real estate games.

Many other game practitioners believe that virtual real estate is purely cutting leeks and has no development value. Even if it is valuable, there is no physical value.

But from the perspective of experienced players, the value of virtual real estate is unlimited.

Wang Le, a virtual real estate game player, told the “International Finance” reporter that he already owns about 5 million yuan of virtual real estate on major virtual platforms. He believes that the virtual real estate model is the ultimate goal of future assets, which is equivalent to human beings discovering the “New Continent of America” ??and exploring a new world.

In Wang Le’s view, virtual real estate is just a kind of game props. If the player has rights, it is worth buying, just like the skin of the glory of the king. In addition, virtual real estate is guaranteed, and the sense of asset security attracts many players to buy. He mentioned, “Virtual real estate is published on ETH , as long as you don’t authorize it, even game developers can’t touch your virtual real estate.”

Player Wang Le does not approve of the argument that virtual real estate is “real estate speculation”. He believes that after virtual real estate is bought, it will bring many rights and interests in the future, and those who recognize it will buy it. Of course, it is not ruled out that some people speculate in “real estate speculation.”

So, where do the rights and interests behind virtual real estate exist?

Wang Le said, “Virtual real estate will have huge monetization capabilities in the future. People flow, commerce, live broadcasting, and advertising are all channels for virtual real estate to monetize in the future. Just like the Internet back then, virtual real estate will carry a new source of power for the world’s economic development. Not only investment, but also huge opportunities for employment, new economic growth points, and new industries, just like Taobao has solved the employment problem of many people.”

Regarding the public opinion phenomenon that virtual real estate is generally regarded as “fake real estate”, Wang Le frankly said that any investment opportunity has early investors, and someone is willing to take risks. But he believes that invisible virtual real estate is not a “fake real estate.” For example, he said, “Taobao stores are online stores, and in some form they are also virtual, but you can’t say that they are fake, because Taobao stores can sell goods for cash.”

The Metaverse is still in the stage of enlightenment

Game developers and game players have different views on virtual real estate, so how do experts and scholars view the value of virtual real estate?

“It’s too early to define the value of virtual real estate.” An Guangyong, an expert on the Credit Management Committee of the All-Union Mergers and Acquisitions Association, said in an interview with a reporter from the International Finance News. At present, many people are against virtual real estate and believe that it contains a lot of moisture. The concept that has been speculated is to satisfy people’s spiritual needs for new concepts and new outlets, but we still need to continue to observe.

An Guangyong pointed out, “It is not virtual, but its value is virtual. He gave an example, “Games are a good example. We can simplify it and compare virtual real estate to various equipment in online games, then its value becomes clearer. If in the future these virtual real estates, through continuous improvement, can enhance the spiritual needs of more people, then there will be corresponding value. “

Chen Sheng, the dean of the China Real Estate Data Research Institute, said in an interview with the “International Finance News” that virtual real estate is based on the blockchain to give real estate a unique value, and then there are other related value operations.

Chen Sheng believes that virtual assets do not necessarily have corresponding physical value. However, if the digitization of virtual assets can be realized and the physical space can be adversely affected, and the physical space is digitally empowered during the virtualization process, and finally combines the virtual and the real, this is the value of the real virtual real estate or the Metaverse of the space. Rather than the value of the dotted data asset itself.

Zhu Xiaohong, an expert on urban operations, the president of the China Luxury Housing Research Institute, told a reporter from the International Finance News that “Metaverse is just a new thing at the stage of enlightenment in our country.”

Zhu Xiaohong said, “We do not rule out the use of meta-universal technology in the future, but now we can only let some academics and people who dare to be the first to try. Large-scale promotion is still far from it. We do not encourage, try, or oppose it. “

Pay attention to these investment opportunities

An Guangyong said that as to whether these virtual real estates can become the investment outlets in the future, it depends on the services that specific related virtual real estates can provide in the future. This cannot be judged by the subjective wishes of investors or people.

CITIC Securities pointed out that there is still a long development path from the ultimate Metaverse and there are more uncertainties. However, it believes that the Metaverse is the future digital survival of mankind, which will have a profound impact on society and bring great industrial ultimate. opportunity. In the process of gradual development, we will continue to see the emergence and integration of single-point innovations in all aspects, continue to approach the ultimate Metaverse, and continue to bring investment opportunities.

Guotai Junan believes that the Metaverse has reached the beginning of its outbreak. With reference to the development history of the mobile Internet, the Metaverse era will be opened by VR and AR terminals, and will be prospered from virtual entertainment applications. It is recommended to pay attention to investment opportunities in the VR, AR industry and virtual entertainment industry.

“Metaverse is the next generation of the Internet, and the future market scale will drive a series of investment opportunities.” Minsheng Securities suggested to pay attention to the VR/AR equipment target Goertek (electronic group coverage), the main equipment trademark ZTE, the Internet of Things model Quectel, etc. of group logo.

Huatai Securities pointed out that with the gradual clarification of regulatory thinking, the impact of the epidemic is expected to continue to reduce, and new technologies and hardware iterations, the media industry is expected to usher in structured allocation opportunities in 2022. It follows two ideas: First, grasp the relatively high segmentation Industry leaders and companies with core competitive advantages, covering fields such as games/long and short videos/industrial Internet/building advertising; the second is to actively embrace the big wave of industry trends under the iterative technology and technology, and explore Metaverse-related investment opportunities, including VR/ AR etc. With the entry of various giants and the increasing popularity of hardware, Metaverse will become one of the main lines of investment in 2022.

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