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Real Estate Built in the Metaverse Are Selling Off Their Assets – Why?


cryptoknowmics.com 12 May 2022 01:44, UTC
Reading time: ~5 m

 Building a virtual real estate portfolio is the next big thing for investors willing to take chances on the new technology. Land with unique entities in the digital world is known as virtual real estate. You can consider this a video game with social and community features. 

Is there a compelling reason to invest in the metaverse virtual world?

Interest in virtual reality, augmented reality, and metaverse real estate spiked after Facebook changed its name to Meta and announced intentions to invest in virtual reality. Also, purchasing a piece of virtual land may appear to be an unusual investment. However, in the end, virtual properties are similar to real properties in many ways. Real Estate in the Metaverse

Why would you buy metaverse real estate?

To begin with, there are a limited number of virtual properties, just as there are a limited number of real properties. As a metaverse property owner, you can build properties that generate revenue, such as buildings that can be rented out or interactive venues that promote brands. Furthermore, an immutable token (NFT) protects each piece of real estate in the metaverse, making it unique. An NFT is similar to a digital deed or proof of ownership that one can uniquely identify. The NFT for your virtual property proves ownership and allows you to sell it to someone else. All transactions involving that property are automatically recorded, so there is no need for title work. It's essentially a digital deed for the twenty-first century.

How do you buy virtual land?

It is easy to buy and sell digital assets in the metaverse. A desktop computer makes it easy to check out virtual properties before buying them on most metaverse platforms. You can learn more about a specific piece of virtual real estate by using a third-party reseller platform such as OpenSea.io or NonFungible.com. You can also look at a property's previous sales and properties available that may be good comparisons. You'll need a digital wallet to store your cryptocurrency and other digital assets to pay for your item. Depending on the metaverse platform you use, your wallet will be different.  You'll also need to buy the cryptocurrency required to complete the real estate transaction. To use Decentraland, for example, you'll need to buy MANA coins. You'll also need a lot of SAND coins if you want to buy from The Sandbox. You can buy all of these cryptocurrencies with cash or other cryptocurrencies on open cryptocurrency exchanges. Buying a house isn't always a big deal in the world of virtual real estate. As long as you have digital money in your wallet, you can go to the platform's marketplace and buy virtual land.  Once you've done this, the transaction will be verified by the platform in a matter of seconds.  Your wallet will be emptied after those checks are completed, and a deposit of an NFT which confirms your purchase. The fact that you now own the property is recorded using an anonymous identifier linked to your wallet.

Top Metaverse High Profile Deals

The "metaverse" is rapidly emerging as a new frontier in which people may interact, work, and do many fascinating things, much like in the real world. Of course, businesses are also in on this. But, again, like in the real world, most businesses are buying land where such activities can thrive and generate revenue. Recently, there have been a lot of investors and buyers purchasing and buying lands in the metaverse. We will consider some of the highest-profile deals below:

The Metaverse Group's purchase of land in Decentraland for $2.43 million 

Tokens.com's Metaverse Group recently purchased 618,000 mana worth approximately $2.43 million presently. The land patch is located in Decentraland, an online, virtual world. The price of virtual real estate has increased by more than 100 percent since the previous record-breaking sale.

The sale of a Decentraland plot for $913,228.20

Republic Realm, a virtual real estate investment company, paid nearly $1 million for Decentraland's non-fungible token (NFT) in June 2021. The plot contained 259 parcels and approximately 16 acres of digital land. The selling price of this virtual land is slightly higher than the average selling price of a home in Manhattan.

The $2.3 million land purchased by Axie Infinity

Axie Infinity Genesis Land, a play-to-earn gaming platform, also sold a plot for 550 ether, worth more than $2.3 million. Nine plots of land worth 888.25 ether each had been bought and sold for more than $1.5 million on the platform. The growing activity in the metaverse has driven recent growth in metaverse-related cryptocurrencies such as Decentraland's mana token, Sandbox's sand, and Gala Games' gala.

Possible Markers Behind Virtual Gaming Assets Sales

Property sales in the metaverse are going up as investors mark out virtual land in foreseeably $1 trillion markets. Plot prices have increased by 500% in the last few months. This happened when Facebook announced its commitment to virtual reality and changed its name to Meta Platforms. Some of the possible reasons why virtual games in the metaverse are selling off their assets are because:

  • Investors are buying up virtual land worth a lot of money in the metaverse.
  • Decentraland recently witnessed a $2.5 million cryptocurrency transaction.
  • Grayscale believes that the metaverse could generate up to $1 trillion per year.

Top Virtual Metaverse Games

Let's check out some of the most prominent online metaverse games that have already made a significant impact.

Sandbox

The Sandbox is currently one of the most popular metaverse games. It provides users with a virtual world where they can create, own, and even make money as part of their gaming experience. The Sandbox is still in its early stages. It is built on Ethereum's blockchain. Recently, the Sandbox has been attracting players because it is visually appealing and enjoyable.

Axie Infinity

Axie Infinity is also one of the most well-known blockchain games in the metaverse. The game's release was in 2018, but it has recently gained popularity in 2021. During the COVID-19 pandemic, Axie Infinity saved the lives of many unemployed people in the Philippines. People played the game to win NFTs, which they traded for cash. As a result, Axie Infinity has come to stay in the NFT gaming industry.

Sorare

Sorare is a great example of a virtual reality game that adds interest and fun to gaming. It is essentially a football-themed NFT game built on the Ethereum blockchain. More importantly, over 180 football clubs have signed up for Sorare, with more every week.


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