Unsuspecting Billion Dollar Real Estate Land Rush
Speculators, real estate agents, and celebrities are buying up land in the Metaverse for millions of dollars. They’re all trying to get in on the hype.
Early adopters are giving away millions in cash just to purchase virtual properties in various metaverse platforms. To purchase virtual lands, you need a digital wallet to buy and store cryptocurrency. Once you convert fiat money to cryptocurrency, you can buy virtual land.
A purchase of virtual real estate in The Fashion District of Decentraland was made by Tokens.com, who bought $2.4 million worth in November 2021. It hopes to develop properties on the land, which it will then rent out to fashion companies as event and retail space. There’s been a lot of demand for property in the digital world, as Republic Realm paid $4.3 million to buy land in The Sandbox a week later.
The metaverse is an ever-evolving, 3D virtual reality space that can be accessed on your computer or phone. You can use it not just to play games, but also to meet friends, go to meetings/classes, and even attend concerts.
The cost of the average parcel of land in The Sandbox has increased by more than 100% in recent months. So, what’s up with all this metaverse drama? Some analysts are not so sure that these virtual lands will continue to exist in the future, which could result in a massive loss of wealth.
The Alexander brothers, Tal and Oren, are now marketing virtual luxury properties to buyers worldwide with celebrity interest like Snoop Dogg and Paris Hilton joining the virtual land grab party. There are huge opportunities in the metaverse for real estate developers. According to data from MetaMetric Solutions, sales exceed half a billion dollars. This number could more than double this year alone.
Skeptics and analysts alike warn that putting your money in these new, highly speculative investments is a risk that people shouldn’t take lightly.