Looking at the end of 2021, with the deepening of control policies, tightening of credit policies, and the introduction of real estate taxes, the development logic of the traditional real estate industry is accelerating its end. On the one hand, it is the decline of the real estate speculation era. On the other hand, in the virtual “Metaverse”, virtual real estate transactions have become increasingly hot.
Does “real estate speculation” also comply with the law of conservation of energy and will not disappear, but will only shift?
1. What is Metaverse “Real Estate”
The so-called “real estate” of the metaverse is actually a part of the virtual space in the metaverse.
After owning these virtual spaces or Metaverse “real estate”, you can build and decorate them, open shopping malls, use them as museums to display virtual collections, or rent them out. From this point of view, apart from being unable to live, real estate in Metaverse is no different from real estate in reality.
This kind of virtual real estate appeared in a game called “Second Life” as early as 2003 : the game only provides land, and everything on the land is independently created by the player, and the player can socialize and shop in it. , Travel, etc., live the “Second Life” of the virtual world.
And Metaverse Real Estate, with the popularity of NFT (non-homogeneous tokens) , has become extremely popular. Since every NFT is unique, non-fungible and indivisible , and at the same time, like Bitcoin, it has the characteristics of a blockchain such as traceability and difficulty in tampering . Therefore, people bind some digital assets to the NFT to make the assets “area”. “Blockchain”. In this way, people’s assets in the virtual world also have the ownership rights. NFT is the “property proof” of people’s real estate in the Metaverse.
Therefore, as a digital asset, the land in the Metaverse is not fundamentally different from other NFTs.
2. The “house speculation fever” has blown into the Metaverse
After understanding the essential meaning of Metaverse real estate, it is not difficult to understand the following things:
On November 23, on the virtual platform Decentraland (distributed continent), Metaverse Group, a subsidiary of Canadian listed company Tokens.com Corp, sold a 565 square meter digital land at a sky-high price of US$2.43 million , which was approximately RMB 15.52 million. The price per square meter is about 27,000 yuan, which is much higher than the average house price in most cities in China.
On November 30, Republic Realm, the real estate company of Metaverse, purchased a piece of land in another platform, Sandbox, for about US$4.3 million . This is by far the most expensive virtual land transaction in the world.
On December 2, in order to become the neighbor of the famous rapper Snoop Dogg in the Metaverse, a player spent US$450,000 (approximately 2.87 million) to purchase a “virtual mansion” next door to Snoop Dogg in the Sandbox , which cost one square centimeter. It’s $20,000.
On December 9 , Hong Kong real estate giant and CEO of New World Development Group Zheng Zhigang announced that he would invest in Sandbox and acquire the largest piece of digital land in Sandbox , creating an “innovation center” in the virtual world, showing the Greater Bay Area (covering Hong Kong, New economic zones in nine cities in Macau and Guangdong). The investment amount is about 5 million U.S. dollars , which is equivalent to 32 million yuan.
Also on November 23, the famous singer Lin Junjie also expressed through social media that he holds three virtual land in Decentraland (distributed continent).
Can be seen on the world’s largest trading platform NFT Opensea, JJ (Meta_Enigma) spent 6000MANA ( Decentraland platform tokens) purchased NEAREST to GENESIS PLAZA Lot.
We can also check this transaction through the Chaindigg blockchain browser. The entire transaction consists of 5850MANA and 150MANA. The transaction time is 23:00 on November 19th.
JJ Lin’s Ethereum contract address: 0x225558706370bef1760c52e76a07be9c104c98aa
As the “Metaverse” boom continues, more and more hot money flows into the Metaverse project, and the Metaverse real estate market has therefore become a target for investors to “sweep”.
3. Is it investment or speculation?
Decentraland (distributed continent) and Sandbox (sandbox) are currently two more mature and popular Metaverse products. They are both virtual reality platforms running on the Ethereum blockchain , where users can buy land and visit , Shopping, communicate and meet other players.
Decentraland ‘s style of painting is like this:
The style of sandbox is like this:
Compared with foreign Metaverse platforms, Hong Kong, which is just starting out in China, obviously has a lower entry barrier, but it will also be more risky in comparison.
Show the world developed by the Hong universe Honnverse take airdrop (own tokens distributed free of charge to the user, in order to increase their number of users) in the form of a grant of virtual real estate, wholesale and put the first 20,000 sets of NFT. According to an open letter signed by its chairman, Rainbow Universe, which has been developed by the company for many years, is “a 3D virtual social product based on blockchain technology.”
Rainbow Universe’s style of painting is like this:
As soon as Rainbow Universe was launched, it ignited the domestic “Metaverse Real Estate Favour” . On Xianyu, the virtual real estate of Rainbow Universe was publicly traded at a price. From ordinary buildings to scarce polar wooden houses and islands around the sea, the price was once fired up to hundreds of thousands or even tens of thousands of yuan. In the end, the official had to make a statement to stop this hype “farce”.
Why is it more risky?
Because Rainbow Universe , Distributed Continent and Sandbox are both games developed based on blockchain technology, but the blockchain centralized technology used by Rainbow Cosmos , while Distributed Continent and Sandbox use Ethereum decentralized technology. .
For the former, if you cannot own the private key, you cannot really own the assets, which is the phrase that we often see “The final interpretation right belongs to the company.” The latter two are completely decentralized game worlds. Everyone can vote to determine how the game world operates, and the assets inside are completely personal.
Similar to the real world, all buildings and business districts are built on land. Therefore, the land in the universe is also regarded as the most important production factor. The value of the real estate of the universe is related to the location, surrounding facilities, visitor volume and flow. They are all closely related, and they are the necessities of the Metaverse world. Scarcity and the ability to continue to grow in visitor traffic can enable holders to obtain wealth from Metaverse Real Estate. Therefore, purchasing virtual real estate, or purchasing various NFTs, is gradually becoming a way of asset investment and wealth storage, just like buying real estate, artworks, etc. in the real world.
Michael Gord, co-founder of Metaverse Grou, said:
Deploying Metaverse real estate in advance is like “purchasing a piece of land in Soho District before New York is reclaimed.” It has long-term economic value. “It is an inevitable trend for Metaverse to become the world’s number one social media.”
At the Taobao Creation Festival in July this year, there was another Metaverse real estate that attracted attention- Tuli Real Estate . These digital real estates come from the hands of art designer Huang Heshan. He claimed to be a contractor hired by Mr. Tu Lifu, the owner of the developer “Tu Lifu Real Estate Company”, to design the real estate project. The 310 digital real estate NFTs on sale that day were sold out within two days, with a total price of more than 360,000 yuan.
Compared with the previous Metaverse Real Estate with a complete virtual platform, this virtual digital real estate is a pure NFT virtual digital collection, which can only be used as a collection, and there is no decentralized platform for players to communicate, communicate, produce and create. .
However, no matter what kind of “Metaverse”, there are actually certain risks.
First of all, the current Metaverse concept is still in its early stage, and the related technology is not mature. Even for some of the leading Metaverse platforms, their completion and development progress are far from a Metaverse world with complete experience and rich playability.
Secondly, the current Metaverse real estate has huge platform restrictions. For example, in distributed continents and sandboxes, the real estate you buy cannot be connected, just like the heroes and skins you bought in Glory of the Kings, which cannot be used in League of Legends.
Furthermore, the development of Metaverse Real Estate is also directly linked to the development of operators. In which year will the full Metaverse come? How big is the difference between the future Metaverse and the Metaverse conceived now? Can the current head Metaverse company survive to that time?
Regarding the increasingly hot “Metaverse real estate speculation”, the “People’s Daily” commented:
Currently, Metaverse and its related application scenarios are still in the initial stage of development. This is the basic premise for analyzing and discussing related topics. In particular, the Metaverse as an industry, although there are infinite possibilities, there are even more uncertainties. Whether it is enriching concepts or exploring extensions, whether it is developing industries or market investment, it is still an exploration attempt based on technology, ideas and needs. This is a gradual development process, from virtual to real, from seeing to tangible, and there is still a long way to go. You may wish to calm down and think twice to avoid the risk of heat to scalding.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-the-metaverse-real-estate-speculator-speculation-enough-to-read-this/
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