- January 10, 2022
- Posted by: admin
- Categories: Blockchain Technology, NFT consulting
Have you ever thought of buying land in Metaverse? If you have never thought about such a concept before, this article will leave you speechless. People are making millions of dollars by investing in a virtual land in a virtual world.
It’s hard to wrap one’s mind around it. One can create many more such metaverses and is supposed to be infinite. So how is it that buying virtual land in a limitless place makes any financial sense at all? That’s what we’ll try to figure out in this article.
A few weeks ago, an NFT-based metaverse real estate company named Metaverse Group bought 116 parcels of land on a digital real estate platform called Decentraland for 6,18,000 MANA, which is roughly equal to USD 3 million based on today’s valuation.
It was the biggest ever amount spent so far on virtual real estate. But that record was broken recently by another company called Republic Realm. It is a digital real estate investment company and has spent over $4.3 million buying virtual land in the Sandbox, which is another very popular metaverse.
Why Invest In Virtual Real Estate
According to Grayscale trust, Metaverse is a trillion-dollar market industry. That’s around one trillion dollars in revenue per year, and the land is the big part of that revenue in the Metaverse. No company in the entire world comes even close to making such huge money.
But how is buying something limitless supposed to make you money? The answer is, it’s not limitless.
There’s a limited amount of digital land, the same way there’s a limited amount of bitcoin. Just because it’s digital doesn’t mean there’s an infinite amount of them.
Buying Physical Land Vs. Buying Virtual Land
Physical land looks like it has an advantage because of its real-world applications. one can do agriculture on it, build homes, and even host events. It is also a finite entity.
In reality, it is not always valuable. There are many places in the USA where the price of physical land has actually decreased over the years.
So we can conclude that not ALL land, even in the physical world, has any value. Its value depends entirely on its location and network effect.
People approach with different strategies to make money in the virtual land. Some are buying low and selling high for short-term gains. But most of them are for the long-term. They suspect that the land they own will be the place where people hangout together virtually.
Ways To Make Money With Virtual Land In Metaverse
1. One of the ways to make money with this land is to charge fees to people that come here. For example, if you want to host live events, you can charge fees to people that want to attend the event.
2. Lease your virtual land to someone else and let them host events while you charge some fee.
3. You can host live events like gaming or concerts by yourself. For example, Justin Bieber hosted a free concert in Metaverse in November. Many people tuned in from all over the world to watch Justin Bieber sing in the Metaverse.
Another example is Snoop Dogg partnered with Sandbox to build a virtual mansion to house his NFT collection. People can experience the mansion and walk through it, and they can also interact with him. Someone actually paid $450,000 to become Snoop Dogg’s neighbor in Metaverse.
Video Games Land In Metaverse
Although there are several ways to make money by buying virtual land in Metaverse, most of the money is currently being made on video games in Metaverse.
There’s a popular video game known as Axie Infinity. More than 300,000 people play this game all around the world. 40% of these people are from the Philippines, and many others are from African countries.
This game is based on the P2E(play to earn) concept and is played on the blockchain. People earn SLP or Smooth Love Portion if they play this game successfully. SLP has real dollar value behind it.
Video games like Axie Infinity are literally changing people’s lives in 3rd world countries. The opportunity to make more money will increase further once these games become global, like league of legends or Minecraft.
Game developers create plots of lands known as NFTs and integrate them into these video games. Players can buy this land in the form of NFTs and upgrade it to make it more valuable. The highest land sale price in Axie Infinity is called LUNACIA, sold for $2.5 million.
Cryptovoxels is another widespread Metaverse that’s based on the Ethereum blockchain. It allows people who own land to build virtual museums and galleries to display their NFTs.
Where To Buy Virtual Land In Metaverse
Have you ever wondered who these people are that are selling these lands? People that are selling these virtual lands are developers of that specific Metaverse.
There isn’t just one Metaverse, but there are many. The three popular Metaverses that are under many people’s radar are Sandbox, Decentraland, and Meta.
1. Sandbox: It was created in 2012, and they have a limited amount of 166,000 plots of land. Their focus is to allow their users to create their own NFTs and video games. They raised over $93 million in their first round of funding and have partnered with Snoop Dogg, Softbank, and Opensea.
2. Decentraland: It was created in 2015, and they also have a limited amount of 90,601 plots of land. They’re well funded, have hosted over 80 live events, and garnered 50,000 virtual attendees. You don’t have to own land to watch these virtual events.
3. Meta: Meta, which is previously known as Facebook, is another popular Metaverse. It has a centralized approach towards this digital universe, unlike Sandbox or Decentraland.
There will be many Metaverses that will be competing to get your attention. Although it’s a great idea to get in early as an investor, one should also consider the downsides before investing. Since we are still in the early phases of technology, it’s better to be cautious before putting your hard-earned money into it.