Is the first batch of Metaverse real estate speculators quilted?

In the second half of 2021, the term “Metaverse ” quickly became popular. Just before many people knew what it was, some virtual real estate and virtual land projects on the metaverse platform were quietly sought after, and some even appeared abroad. The price of a transaction of 100,000 or even millions of dollars is close to the housing price of China’s first-tier cities.

In China, although the Metaverse app “Rainbow Universe” developed by the listed company Tianxiaxiu is still in the closed beta stage, some users have begun to sell virtual real estate on the platform on third-party platforms. In mid-December, the top real estate projects were on Xianyu. At one time, the transfer price exceeded 100,000 yuan.

However, Sino-Singapore Jingwei recently discovered that Xianyu has blocked keywords such as “Metaverse” and “Rainbow Universe”, and the platform can hardly retrieve virtual real estate transactions. On some QQ groups, there are still many users reselling Rainbow Universe real estate, but the price has dropped significantly compared with before, and the price of top real estate is less than 10,000 yuan.

Rainbow universe virtual real estate prices shrink

“2500 (RMB) for half sea view villa + balcony building, with account number” “1200 (RMB) for glass flower room, without real name, with number” “Two numbers, one bungalow b, one mountain cottage, and the number is dropped together, Shanghai can deliver in person and sign an electronic contract”…

In a QQ group of Rainbow Universe, even though the administrator of the group kept reminding “be cautious when it comes to money,” the news of the above-mentioned sales and purchases continued from morning to night. There were people hawking and asking prices, and you came and went. During the two days when a reporter from Sino-Singapore Jingwei joined the group as a buyer, the number of users in the group increased by nearly 1,000.

Half sea view villas, glass flower houses, and mountain village huts are all types of real estate in Rainbow Universe. Users will set different prices for them according to their scarcity. Li Meng, the founder and chairman of Tianxia Show, introduced on November 18 this year that Rainbow Universe is a 3D virtual social product based on blockchain technology that has been developed by the company for many years. Of reserved users.

Is the first batch of Metaverse real estate speculators quilted?

Rainbow universe virtual real estate situation

There are 13 types of houses on Rainbow Universe, with a total circulation of 350,000 units, which can be divided into six levels: SSS, SS, S, A, B, and C according to their level. SSS-level real estate has not yet been issued. The SS-level “Sea Island” is currently the highest-level room type, and the scarcity is also the highest. The planned circulation is only 420 sets, and the scarcity is 0.12%. The S-level includes two types of rooms: polar wooden houses and half-sea view villas. The planned circulation is 2,450 and 4,550, respectively, and the scarcity is 0.70% and 1.30%.

Tianxia Show has not announced the prices of islands around the sea, polar wooden houses, and half-sea view villas. The prices of A, B, and C three-level properties range from 8.88 yuan to 88 yuan, and the price is not high. On December 24, a person from the Tianxia Show explained to Zhongxin Jingwei that although the company marked prices for some virtual properties, they were actually distributed to users for free. Classification, users do not need to spend money to buy.”

As it caught up with the land sales boom on the international Metaverse platform, Rainbow Universe unexpectedly went out of the circle. Although the price of hundreds of thousands and millions of dollars in foreign countries is far away, the virtual real estate on Rainbow Universe is still sold by users at high prices on third-party platforms.

In mid-December, Sino-Singapore Jingwei saw on the Xianyu platform that a seller sold SS-level islands around the sea at a price of 150,000 yuan, and claimed that “the number is the top 5”. In addition, there are sellers who sell islands around the sea for 100,000 and 120,000 yuan, all claiming that the house number is higher. Even more exaggerated is that some netizens posted that the price of a set of islands surrounding the sea on Xianyu is as high as 500,000 yuan. The prices of S-level polar wooden houses and half-sea view villas range from several thousand yuan.

Is the first batch of Metaverse real estate speculators quilted?

Xianyu shields keywords such as “Rainbow Universe”

However, Sino-Singapore Jingwei recently discovered that Xianyu APP has blocked keywords such as “Metaverse” and “Rainbow Universe”, and it is almost impossible to retrieve virtual real estate transactions with Pinyin and Homophone. In the above Rainbow Universe QQ group, there are still sellers selling virtual real estate, but the price has dropped significantly.

A seller showed to Sino-Singapore Jingwei a set of real estate on the islands around the sea with a number within 300, and was willing to sell it for 10,000 yuan. Another buyer who bought the islands around the sea said that the price is 10,000 yuan for the top 100, and 7,000 yuan after the 100. He said: “I don’t dare to say that there is no market, but it is all bought by individuals, and the risk is too great.”

Facing virtual real estate transactions off the market, the above-mentioned people on Tianxia Show expressed their surprise and said that they deviated from the original intention of the company. On December 13th, Rainbow Universe announced the list of the first batch of user accounts that violated regulations and the results of its disposal, to crack down on the illegal hype and private transactions of login accounts, digital collections, and props.

Why is virtual real estate?

Is the first batch of Metaverse real estate speculators quilted?

Islands around the sea in the rainbow universe

Many people have never imagined that the first thing that caught the fire in the metaverse concept was the virtual real estate or land on the metaverse platform. At the end of November this year, a piece of land on the virtual reality platform Decentraland was sold at a high price of approximately US$2.43 million, setting a new transaction record for virtual real estate.

At the same time, singer JJ Lin also announced that he had purchased 3 plots of land on Decentraland. A few days later, RepublicRealm, a development real estate company of Metaverse, announced that the company had purchased a piece of land on the Metaverse game Sandbox for approximately US$4.3 million.

The price of virtual land is so high that it is staggering. You know, several million dollars are enough to buy a well-located luxury house in China’s first-tier cities. Even if the total price of the real estate on Rainbow Universe is not expensive, the outside world will have doubts: What is the use of this thing?

To answer this question, we must first figure out what virtual real estate is and why it is important.

According to Yu Jianing, Executive Director of the China Mobile Communications Federation’s Metauniverse Industry Committee, Metaverse is a new generation of the Internet, essentially a product of the integration of the digital world and the physical world. It is a new species and the mother of a new species. “In this digital world, digital real estate is the foundation for the construction of living spaces, which can be used for exhibitions, brand displays, entertainment, commerce, and conferences.”

In an interview with Sino-Singapore Jingwei, Ma Tianhao, chief analyst of Minsheng Securities Communications and Metaverse, said that traditional real estate and virtual real estate have similarities. He pointed out that “both have value, and the logic of traditional real estate They are all driving factors of land value. A core element of virtual real estate value formation is still scarcity. However, in the virtual world, these words are replaced with “content”. In the future, Metaverse real estate can be used for leasing, By selling, virtual real estate service providers can generate income by selling housing services.”

Because of the location and other factors, different virtual real estates will have different selling prices. Yu Jianing said: “The value of Metaverse’s digital real estate depends on the future development of Metaverse. In the future Metaverse, just like real estate in the real world, each digital real estate is a unique asset. The digital real estate owned by the company often has a high degree of exposure, which will not only attract a large number of visitors, but also bring traffic to the surrounding buildings. At the same time, digital real estate with good geographical advantages is relatively scarce.”

Facing the value of virtual real estate, traditional real estate developers have also begun to make arrangements. On December 9, Zheng Zhigang, a Hong Kong real estate giant and CEO of New World Development Group, announced that he had purchased one of the largest digital plots in the Sandbox, hoping to build an “innovation center” to showcase the commercial success of new ventures in the Greater Bay Area. Zheng Zhigang will display 10 characteristic companies on this virtual land, including diagnostics and genetic testing developer Prenetics, logistics unicorn Lalamove, technology accessories brand Casetify, etc. He said these startups will launch NFTs, immersive experiences and entertainment. According to reports, this virtual land cost about 5 million U.S. dollars.

“Not suitable for blind investment by individuals”

It is not difficult to find that the existence of virtual real estate has its rationality. It is a business logic and consumer demand that extends from traditional real estate, but at the same time, it should be noted that there is a clear difference between the two.

A person engaged in Metaverse research in Beijing analyzed China-Singapore Jingwei: “Virtual real estate depends on the virtual platform on which it is located. If this platform disappears for some reason in the future, the value of virtual real estate will not exist, but This is not the case for real houses or land. Virtual real estate has neither regulatory authorities to regulate it nor the protection of laws and regulations, and there is greater uncertainty. Real estate is an asset protected by sound laws and regulations. Therefore, the current virtual real estate does not have long-term stability, and investors need to look at it rationally.”

“The application of Metaverse is still in the very early stage. All companies that claim the concept of Metaverse may not be able to’complete the journey.’ Therefore, digital assets, including digital real estate, have great risks and are not suitable for blind investment by individuals. Investors must also carefully distinguish the’authentic Metaverse’ projects.” Yu Jianing said.

As far as the products launched based on the concept of Metaverse are concerned, many netizens have complained about loading lag, single content, and rough design, which are not at the same level as the expected Metaverse products. Rainbow Universe is also facing these problems. The above-mentioned people of Tianxia Show frankly said that the current products are still relatively primitive, and many ecosystems need to be built slowly.

But Yu Jianing also pointed out that when the Metaverse era really comes, the digital world and the physical world will be deeply integrated, and real estate in physical form may become NFT, thereby reducing transaction costs and improving transaction efficiency. NFT is a non-homogeneous token, which is the only cryptocurrency token used to represent digital assets and can be bought and sold.

In an interview with Sino-Singapore Jingwei, a person in charge of a toy company who is interested in virtual real estate said that he is also waiting to see whether he wants to buy Metaverse. The maximum tolerance is within 100,000 yuan. “The investment in Metaverse virtual real estate is like online game Krypton Gold. It doesn’t matter if Krypton is appropriate, it’s just like buying a digital product.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/is-the-first-batch-of-metaverse-real-estate-speculators-quilted/
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