Thursday, July 7, 2022

Virtual land sold for $2.5 million

HomecryptocurrencyVirtual land sold for $2.5 million

A virtual block of land in the Metaverse recently sold for a stunning $2.43 million, the virtual universe’s highest transaction to date. The Metaverse Group acquired Decentraland’s Fashion District from Tokens.com.

Investors are rushing to the metaverse, a simulated immersive 3D environment in which anybody can create an avatar and communicate with others in real time, as well as purchase and sell items such as real estate. This is feasible via the use of AI Technology , Virtual Reality (VR), and AR Technology.

“The market potential for putting the Metaverse to life might be valued over $1 trillion in yearly revenue,” Grayscale, a crypto asset management business, stated in a research without providing a deadline.

Numerous similar virtual platforms—Decentraland, Axie Infinity, and Sandbox, to name a few—allow for the purchase and sale of user-generated digital settings. Due to the nature of the transactions, which take place in the virtual world, the means of payment is likewise digital or cryptocurrency. For example, the Decentraland transaction was conducted in the indigenous cryptocurrency, MANA, which is now trading at about $5 on coinmarketcap.com.

How can land acquire worth if it exists only in the mind?

  • While the internet is endless, a metaverse is indeed not. Multiple virtual worlds are possible, but their size will be restricted. Thus, each planet has a certain quantity of land, and it is built in such a way that more land could not be added later. The rarity of the item leads to its value appreciation.
  • The notion of a finite supply is similar to that of Bitcoin. Exactly 21 million bitcoins is issued. Once the quantity is reached, no more additions will be made, and the scarcity of supply will continue to drive up its value.
  • Decentraland, for instance, has 90,000 land pockets of 2,704 square feet apiece. They were all sold at auction in 2017 and 2018, but their value continues to climb, and they are currently being traded on the Decentraland marketplace. The 6,090 square feet of virtual property sold for $2.4 million.
  • Virtual land’s position is just as important as physical land’s location nowadays. A digital gathering is more likely to take place in areas that are brimming with vitality, rather than on the metaverse’s edges. Brands are interested in such pieces of land.

Is it possible to repurpose virtual real estate?

  • Taking possession of virtual assets had became a secure and safe process with the development of blockchain technology. Since then, it has been included into games to ease the management of in-game assets. The following are the possibilities for owners of virtual land:
  • Develop the property (create malls or retail establishments) – either on your own or via the assistance of virtual land developers.
  • Conduct commercial ventures or lease land to other entrepreneurs
  • Organize business and social events
  • Make a profit by re-selling the land.
  • Mortgage real estate to generate more revenue
  • Establish adventure parks and participate on adventures
  • Why are companies investing in e-commerce?
  • It’s becoming more impossible for the majority of people to fathom a world without technology this day and age. Additionally, as a result of COVID-19’s prohibitions on social events and physical interactions, individuals have migrated online.
  • According to experts, the youth of today is more likely to engage in virtual events, purchasing, and other activities. Fashion and enjoyment are expected to harness the metaverse’s capabilities in the future. Investors are eager to capitalise on this possibility, and as a result, virtual world real estate purchasers are not restricted to corporations but can include towns and even individuals.
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