Metaverse is hot: US virtual real estate attracts multi-million dollar investment

Some investors are paying millions for plots that don’t actually exist on Earth.

Metaverse is hot: US virtual real estate attracts multi-million dollar investment

Beijing time on the morning of January 13th, according to reports, US real estate prices are rising sharply, but the new crown virus epidemic has also triggered another less-recognized land investment boom. Some investors are paying millions for parcels that aren’t located in New York or Los Angeles in Beverly Hills, and which don’t actually exist on Earth.

These lands are located in a virtual world known to those in the tech industry as the “Metaverse.” Land prices in the Metaverse have surged 500% in the past few months since Facebook announced it was going all-in on virtual reality and changed the company’s name to Meta Platforms.

“The Metaverse is the next form of social media,” said Andrew Kiguel, CEO of Toronto-based Tokens.com. “In the Metaverse, you can go to a carnival, you can go to a concert, you can go to Visit a museum.” The company invests in real estate in the Metaverse, as well as NFT-related digital assets.

In the Metaverse, real users interact with cartoon characters, similar to real-time multiplayer games. Today, users can access the Metaverse through ordinary computer screens, but companies like Meta have a longer-term vision of building 360-degree immersive worlds that users will enter through virtual reality headsets like Meta’s Oculus.

A recent report from crypto asset management firm Grayscale predicts that the digital world may become a $1 trillion business in the near future. Here, well-known entertainers including Justin Bieber, Ariana Grande and DJ Marshmello are performing in their own animated characters, and even Paris Hilton is doing her own A New Year’s Eve party was held on the virtual island of .

Kegel’s company recently spent nearly $2.5 million on a piece of land in one of the hottest Metaverses, Decentraland.”Prices have gone up 400% to 500% over the past few months,” he said.

In another hit Metaverse Sandbox, Janine Yorio’s virtual real estate development firm Republic Realm set a new record price for a land for $4.3 million. Her company sold 100 virtual private islands last year for $15,000 each, she said. “Today, each island sells for about $300,000. Coincidentally, that’s on par with the average U.S. home price.”

“For some people, the digital world is as important as the physical world,” said Oren Alexander, a Miami-based real estate agent. “It’s not a question of whether you believe me or not, it’s a question of what the future looks like.”

Similar to real estate in the real world, Kegel said, the most important thing in real estate in the Metaverse is still location.”When you first go into the Metaverse, you see people congregating in certain areas. Those areas are definitely more valuable than areas where no one is moving,” he said.

To be sure, high-traffic areas are attracting investors willing to spend big. “It’s like a Monopoly game,” Kegel said. “For advertisers and retailers, the areas where people gather are more valuable. They’re going to find ways to get in and reach those people.”

 

For example, rap star Snoop Dogg is building a virtual mansion on a piece of land in Sandbox. Recently, someone paid $450,000 to be his neighbor. “I think it’s very important who your neighbors are,” Jorio said. “It’s like almost anything. It’s like a club where you want to hang out with like-minded people.”

Buying virtual land is simple, either directly from the platform or through developers. Investors build on their land, adding interactive elements. “You can renovate, you can remodel, you can refurbish. It’s just code,” Yolio said.

But she also warned that investing in digital real estate is a risky business. “The risk is high. You have to be prepared to lose your investment. There is a lot of speculation. This is also blockchain-based. We all know that cryptocurrency prices are very volatile, but can also lead to huge returns.”

Mark Stapp, a professor of real estate theory and practice at the University of Arizona, agrees. “If I was worried about losses, I wouldn’t put my money on it,” he said. “If it goes on like this, the most likely thing is a bubble. You’re buying things that have nothing to do with reality.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/metaverse-is-hot-us-virtual-real-estate-attracts-multi-million-dollar-investment/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.