Investors are spending millions to buy land in a new city that only exists in a virtual world.
You can buy a virtual plot which exists online only. Yes, you read it correct. And, this is just the beginning of the new real estate of the future. You buy a plot which does not exist in any part of the world in physical form. It is online. You cannot live in it, neither see it or touch your property. The online property exists to buy nd sell your plot without getting possession of the property, ever.
The plot has been launched by Metaverse Group. The Metaverse Group, a subsidiary company of Tokens.com, has bought a plot of land that doesn’t physically exist for $2.4M worth of cryptocurrency. The virtual land is located in a metaverse called Decentraland. This is the largest metaverse land acquisition to date.
Perhaps the better question is ”What is Decentraland?” Well, Decentraland is a 3D virtual world (or metaverse) that is built on the Ethereum blockchain. Initially, it was just a pixelated 2D grid that allocated pixels to users.
Now it allows users to create their own 3D worlds, sell land in these worlds and put up virtual buildings such as hotels, movie theaters, apartment blocks, and anything you would find in the physical world.
What is Decentraland?
Decentraland is divided into 90,601 individual plots of virtual land of equal size, each of which is represented by an NFT. When a land sale such as this occurs, it means that the NFT has been bought using Decentraland’s cryptocurrency called MANA. One MANA is currently worth approximately $4.65.
Metaverse Group spent 618,000 MANA (about $2.4 Million at time of purchase) on an estate of 116 plots in Decentraland’s Fashion Street district.
This is a speculative investment, as Metaverse Group eventually intends to host digital fashion events and sell virtual clothing on the acquired property. “Fashion is the next massive area for growth in the metaverse,” parent company Tokens.com said a statement.
Rewards will not be immediate because the metaverse is still in its early formative years. It will be a long time before the Metaverse Group sells any virtual clothing or attracts massive attendance of digital fashion events at its property.
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In addition, both the metaverse and cryptocurrencies will keep experiencing booms and busts. People will make fortunes and people will lose fortunes. It was like that with the oil boom, the dot.com boom, and now the cryptocurrency boom. The metaverse will be no different in its early years.