Metaverse is booming, revolutionizing real estate
Mark Zuckerberg might claim that the Metaverse is the future – but in the eyes of others, the future has already begun. Science fiction author Neal Stephenson coined the term “Metaverse” in his 1994 novel, Snowfall. Throughout the pages, the main character, Hiro Protagonist, navigates the virtual world.
Since 2003, millions of people have also worked, played, and socialized in the Metaverse within the online world of Second Life. While the game, which had its heyday in the first decade of the 2000s and features blocky graphics, is a far cry from the modern take on the metaverse presented by companies like Meta and Microsoft, the idea of a virtual metaverse where people interact is nothing new. idea.
Currently, Decentraland is arguably the best-known modern metaverse, engaging a global network of users to buy and sell digital real estate, explore, interact, and play games. The Decentraland Foundation came into being in 2015, and the project’s initial coin offering (ICO) in 2017 raised around $26 million at the time. Although Decentraland is large and offers a lot of activities, the platform has attracted many eyes to the lucrative and ever-growing digital real estate sector.
On Nov. 25, media reported that non-fungible token (NFT)-based real estate company Metaverse Group purchased land from Decentraland for $2.43 million to help with its plans to enter the industry of digital fashion.
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Metaverse monetization is shaking up the real estate industry
It is becoming increasingly clear that commercial real estate in the metaverse is going to play a huge role in the global real estate industry in the years to come. In the fall of 2021, Tokens.com signed a letter of intent to purchase a 50% stake in a digital real estate portfolio owned by Metaverse Group, which then plans to market the offerings as a premier digital real estate REIT. . The Metaverse group estimates that a public listing could occur in 2022 or 2023.
The popularity of buying and selling digital assets means companies like the Metaverse Group are working on, for the most part, the same kind of buying, selling and marketing related tasks as a real estate company. traditional. As prices rise and buyers seem frantic about virtual land, some are expressing skepticism that investing in digital real estate will prove prudent in the future.
Related: Blockchain metaverse ecosystems are gaining momentum as brands create digital experiences
Yet despite high prices, interest in metaverse real estate continues to grow, especially as the coronavirus pandemic has pushed more people online and made them more adept at socializing virtually. Those interested in metaverse real estate also have competition, namely celebrities who have been quick to tout their digital real estate business.
In late September, The Sandbox announced a partnership with legendary rapper Snoop Dogg to set up his NFT mansion and collection in the metaverse. The following month, Paris Hilton partnered with Decentraland and Genies to be one of the main artists at the inaugural Metaverse Festival which took place at the end of October.
How real estate investors are turning to virtual properties
Attention and interest in the Metaverse has not escaped companies other than Meta, formerly Facebook, and Microsoft, which are also eager to get in on the action.
Like traditional real estate that often retains its value even in tough economic times, metaverse properties continue to thrive despite the ebbs and flows of Bitcoin (BTC) and other cryptocurrencies.
The popularity of NFTs, coupled with increased interest in online environments, contrasts with the limited amount of land in virtual worlds of the metaverse, which keeps prices high. For example, Decentraland only has 90,000 pockets of land.
Related: NFTs find real use with the advent of the Metaverse in 2021
Investment firms are even dipping their toes into the metaverse and continuing to learn more about how they can get involved. The high prices, popularity, and ease of buying and selling virtual land (unlike traditional real estate) means that the metaverse will be more than a buzzword. Like the domain name rush in the early days of the Internet, savvy investors and buyers buying properties in prime locations will look very smart as more and more people jump into the metaverse.
As the metaverse continues to grow and develop, so will digital real estate. Savvy buyers and investors would be wise to stay one step ahead and assume that the metaverse’s housing boom is here to stay.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Dror Lupu holds a bachelor’s degree in economics from the University College of Tel Aviv. He is the CEO of Rentible.io, a next-generation DApp for managing real estate rentals and promoting decentralized ownership and technology to a mainstream audience. He has held leadership and advisory positions in successful tech startups in different fields, primarily focusing on PropTech and blockchain-based utility companies.