Mark Zuckerberg might argue that the Metaverse is the future, but in the eyes of others, the future has already begun. Science fiction writer Neal Stephenson coined the term “Metaverse” in his 1994 novel Snow Crash. On the pages, the main character, the protagonist Hiro, moves through the virtual world.
Since 2003, millions of people have worked, played and communicated in the Metaverse in the online world of Second Life. While a game that peaked in the 2000s and with its slightly barred graphics is a far cry from the modern vision of the Metaverse presented by companies like Meta and Microsoft, the idea of a virtual metaverse in which people interact is not new. idea.
Currently, Decentraland is undoubtedly the most famous of the modern metaverse and motivates a global network of users to buy and sell digital properties and explore, interact with and play games. The Decentraland Foundation was founded in 2015, and the project’s first coin offering (ICO) in 2017 brought in about $26 million at the time. While Decentraland is an expansive company with a lot to do, the platform has drawn the attention of many to the lucrative and ever-growing digital real estate industry.
On November 25, media reports emerged that NFT-based real estate firm Metaverse Group had purchased a plot of land with Decentraland for $2.43 million to help with plans to enter the digital fashion industry.
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It is becoming increasingly clear that commercial real estate in Metaverse will play an important role in the global real estate industry in the coming years. In the fall of 2021, Tokens.com signed a letter of intent to acquire a 50% stake in the digital real estate portfolio owned by the Metaverse Group, which then plans to sell the offerings as the first digital real estate fund. The Metaverse Group believes that a public listing could take place in 2022 or 2023.
The popularity of buying and selling digital real estate means that companies like the Metaverse Group deal essentially with the same buying, selling and marketing tasks as a traditional real estate company. With prices soaring and buyers seeming crazy about virtual lands, some have expressed doubts that investing in digital real estate will prove wise in the future.
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Despite rising prices, interest in real estate in the metaverse continues to grow, especially as the coronavirus pandemic has brought more people online and made them more social. Those interested in the metaverse real estate also have competitors, especially celebrities who are not shy about promoting their digital real estate activities.
In late September, The Sandbox announced a collaboration with legendary rapper Snoop Dogg to create The Mansion and its NFT group in the metaverse. The following month, Paris Hilton partnered with Decentraland and Genies to be one of the featured artists at the inaugural Metaverse Festival in late October.
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The interest and attention given to the Metaverse has not escaped from companies other than Meta, formerly known as Facebook and Microsoft, who are also eager to take part in the event.
Like traditional real estate, which often retains its value even in tough economic times, real estate in the metaverse continues to grow despite the rise and fall of Bitcoin (BTC) and other cryptocurrencies.
The popularity of NFTs, along with the growing interest in the online environment, contrasts with the limited number of countries in virtual worlds in the metaverse, which keeps prices high. For example, there are only 90,000 plots of land in Decentraland.
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Investment firms are even diving into the Metaverse and continuing to learn more about how to get involved. The high prices, popularity and ease of buying and selling virtual lands (as opposed to traditional real estate) mean that the Metaverse will become more than just a buzzword. As with domain names in the early days of the internet, investors and savvy buyers who buy real estate in the best sites will seem very smart as more and more people jump into the metaverse.
As Metaverse continues to grow and expand, so does digital real estate. It would be wise for savvy buyers and investors to stay ahead and assume that the property boom in the Metaverse is here to stay.
