Metaverse real estate speculation has intensified, and investment is still focusing on location, location, or location.
The Translation Bureau is a translation team under 36Kr, focusing on science and technology, business, workplace, life and other fields, focusing on introducing new foreign technologies, new perspectives, and new trends.
Editor’s note: The concept of Metaverse has become more and more intense. Since this concept has just begun to emerge, the related real estate industry is also in an early stage of development. Therefore, many investors believe that now is the best time to invest. They are trying to create a commercial territory in the virtual world by seizing a favorable position in the Metaverse. This article comes from the compilation, the article tells the story behind this development trend in detail.
In late November 2021, Justin Bieber held a concert, but the venue was not in a stadium or arena.
Just like the recent performances of singers such as Ariana Grande, the Weeknd and Travis Scott, they all held a Metaverse concert. An online world extends every corner of the Internet into an immersive thinking experience.
Fans all over the world can watch Bieber’s 3D animated images sing songs from his fire album “Justice”. In addition to fans, many investors also watched this concert. The digital land boom lasted only a few months, and investors were eager to try and snapped up performance venues, shopping malls and other real estate resources in Metaverse.
In order to also make a fortune in the digital field, in October 2021, Mark Zuckerberg (Mark Zuckerberg) announced that Facebook will be renamed Meta, and hopes to benefit from entering the digital field. According to virtual currency investor Grayscale, the value of global goods and services in the Metaverse will soon reach one trillion U.S. dollars.
The Metaverse includes multiple digital regions. Each area is like a 3D virtual city, where 3D animated images in the city can live, work and play. Anyone who has played popular games like Fortnite, Animal Crossing and Roblox should know what these digital areas look like.
In every digital domain, elements such as virtual reality, video streaming, mobile games, animated images, and artificial intelligence are all used in immersive virtual experiences.
However, investing in real estate in Metaverse is still highly speculative, and no one can be sure whether this wave of craze will be a big trend or a big bubble.
Technical experts believe that within a few years, Metaverse will develop into a stable economy where the synchronized digital experience is integrated into our lives just like the emails and social networks in our lives today.
Image source: Boson Protocol
Since Metaverse is driven by the blockchain (the essence of the blockchain is a distributed public ledger, which avoids the need for third parties such as banks), therefore, cryptocurrency is still circulating in the digital world.
Anyone in the virtual world can buy or trade art, music, and even non-fungible token (NFT) real estate. This type of real estate belongs to a blockchain-based collectible, which is a digital representation of real-world items. NFT is a proof of property ownership and is not interchangeable.
In recent months, the transaction volume of Metaverse’s commercial real estate has seen a sharp rise.
In October 2021, Tokens.com, a blockchain technology company focused on NFT and Metaverse real estate, acquired 50% of the shares of Metaverse Group, a real estate company, for $1.7 million.
Metaverse Group is headquartered in Toronto, and its virtual headquarter is located in the “Decentraland” of the “Crypto Valley”. “Crypto Valley” is Metaverse’s projection of Silicon Valley. Decentraland also has gambling, shopping, fashion and art districts.
“Instead of trying to create a world like Facebook, why don’t we go in, buy the land in the metaverse, and then become landlords?” Andrew Kiguel, co-founder and CEO of Tokens.com ). Since the last acquisition, Tokens.com has established a digital building in Decentraland.
As Louis Vuitton, Gucci, Burberry and other luxury brands have entered the Metaverse through NFTs, Tokens.com executives are optimistic that their company will soon adopt leasing and advertising. The business generates revenue.
A digital building built by Tokens.com in Decentraland. Image source: Tokens.com
Michael Gord, the co-founder of Metaverse Group, said that for those who are curious about why they invest in virtual office space in Metaverse, they should look at the trends that the epidemic has spawned.
“As more and more people participate, you can meet with your friends in the virtual space, and even watch a concert together through the virtual space.” Gao De said. “It is an inevitable trend for Metaverse to become the world’s number one social network.”
Metaverse Group owns a real estate trust investment fund, and it plans to build a real estate asset portfolio on Decentraland and Metaverse platforms such as Somnium Space, Sandbox and Upland.
Although the Internet is unlimited, virtual real estate is not. For example, Decentraland has 90,000 parcels of land that are 50 feet (approximately 15 meters) in length. Among them, 36,000 pieces of land are planned to be used for community construction, and the remaining 54,000 pieces of land will be auctioned to users. Gothe said that most investors believe that there is gold hidden in these pixelated hills.
“Think about it, if you come to New York where there are crops everywhere, you can choose to buy a SoHo area.” Gothe said, “Nowadays, the land in SoHo, New York has no market, and the same thing will happen in Yuan Staged in the universe.”
In November 2021, Tokens.com acquired a digital real estate in the Decentraland Fashion District for approximately US$2.5 million. According to the company, this real estate transaction is the largest transaction in the history of Metaverse. The purchased land will be built into a virtual business center for luxury fashion brands, just like la Rodeo Drive in Los Angeles or Fifth Avenue in New York.
Kegel predicts that the value of his investment portfolio in Metaverse can reach up to ten times the purchase price. As for why, many people who have experience in physical real estate transactions should know why.
“Location, location, location.” Kegel said. “A piece of land in the center of the city with convenient transportation is more valuable than land of the same size in the suburbs. This is a kind of scarce value.”
Many digital fields are cartoon-shaped, colorful illusory worlds, while other digital worlds are digital applications based on the earth that we know and love.
SuperWorld is an augmented reality social virtual community empowered by blockchain technology and supported by NFT. It is an AR virtual world that can be mapped to any place in the real world. There are approximately 648 AR virtual lands that users can collect, manage, buy, and sell. 100 million yuan, every piece of land is traded through NFT.
SuperWorld co-founder and CEO Hrish Lotlikar (Hrish Lotlikar). Image source: Sasha Maslov
On this platform, even the Taj Mahal can be sold, and of course it can also include your childhood house. Users can buy land out of sentimental or speculative reasons, but anyway, once they buy the NFT, they can get any commercial profits generated on the land.
SuperWorld co-founder and CEO Hrish Lotlikar said, “You can buy the lot you like, whether it’s New York’s Central Park or the Egyptian pyramids, the land you buy is covered in these places. Virtual real estate on Earth.”
As the Metaverse deepens our daily cognition of this universe, a new field has emerged that erases the gap between these two universes: the almighty universe.
Boson Protocol co-founder and CEO Justin Banon (Justin Banon) said that the real world and virtual world merge into a hybrid universe, where homogeneity and non-homogeneity intersect at multiple points, thus allowing Physical products can be sold in the form of NFT in Metaverse. The real estate in the Metaverse will become the carrier of commercial activities that promote this transformation.
Translator’s Note: Boson Protocol emphasizes a new generation of decentralized data exchange protocol, in which a decentralized ecosystem will be built. In the ecology, commercial data is concentrated in a secure, privacy-preserving shared data layer, and it can be monetized in a fair manner.
“Everything is changing, it’s just a matter of degree,” Bannon said. “But I think that in five years, if I don’t wear sneakers without NFT, my daughter will definitely not let me go to school to pick her up.”
A view of Manhattan in the SuperWorld world. Image source: SuperWorld
In June 2021, Boson Protocol bought an entire block of the Las Vegas gambling district in Decentraland. The company said that this space will become a commercial intersection, real-world products can be exchanged for NFT, and the same NFT can be used as a digital representation of physical products, and items can also be traded in physical stores.
“Everyone thinks that we are still at a very early stage, these things will become contemporary antiques.” Bannon said. “So, it must be profitable to start now.”
Currently, investors only buy and sell real estate through a few digital fields, and these places use their own cryptocurrency. For example, Decentraland’s cryptocurrency is called MANA. In addition, Decentraland also has a market for people to browse NFTs (including land for sale). This is like a multiple listing service. “Kiegel said.
Wave is a virtual entertainment company that organizes interactive concerts. Bieber’s concert was organized in cooperation with Wave.
The company earns profits from virtual goods and brand sponsorship, and these performances are held in neutral areas rather than digital venues. The company has not yet monetized real estate, but its co-founder and CEO Adam Arrigo said he is studying various possibilities.
“Metaverse platforms like Decentraland and Sandbox are pioneers in certifying these plots and stores,” Adam said. “In a few years, all we have to do is become more mainstream.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-real-estate-speculation-of-metaverse-is-getting-more-and-more-intense-and-the-real-estate-group-takes-the-lead-in-seizing-metaverse/ 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.