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Buying Virtual Land in the Metaverse The Motley Fool

7월 11, 2024

When you can see the entire transaction history for a property, as well as those of its neighbors, it can help you decide whether the property is worth what the seller is asking. Remember, though, that no two plots of virtual real estate are the same, so the prices will always, necessarily, be somewhat different. Dedicated virtual real estate brokers work in different metaverses, helping people buy hard-to-get plots, such as those in proximity to virtual land owned by a celebrity, for instance.

Where to buy metaverse land

Verified land in the Sandbox and Decentraland will have a blue checkmark by the offering on OpenSea, and it’s the safest option for buying real estate. One wallet commonly used to buy land is called MetaMask, and it’s accepted by the Sandbox, Decentraland, and OpenSea. To set up a MetaMask wallet, you will need to download the app on your phone or via the Google Chrome browser extension. After you download MetaMask (or another kind of crypto wallet), you will be asked to create a password and will likely be given a secret phrase which you’ll use to verify your identity later on. Once you’ve created a crypto wallet you can use that wallet to open an account on the Sandbox or Decentraland. And remember, it’s important to explore a given metaverse platform before you invest in it.

Once the transaction is confirmed, you can see the NFT in your digital wallet, and will be registered as the new owner. Depending on the aim of your purchase, you can either hold on to it as a long-term investment, flip it for profit, or build something on it. Alternatively, how to buy procurrency you can head to your chosen metaverse platform, in this case, the Sandbox, and purchase virtual land NFTs from there. You can purchase land on an NFT marketplace like OpenSea and search for land NFTs of a specific metaverse, or alternatively, head straight to a specific metaverse platform, such as Decentraland Marketplace, and buy the land NFT directly. Several retailers are acquiring space and are buying up virtual land in the metaverse on different platforms. Moreover, a growing number are investing early to get ahead; some of these retailers include Tommy Hilfiger, adidas, Burberry, Gucci, Nike, and Samsung, but not only clothing retailers but also large retail banks such as HSBC or JP Morgan.

The virtual world of Decentraland is clustered into districts with each one having a unique type of content. For creators and brands, these districts give them more targeted traffic that enables them to bring their content to specific audiences. Fortune’s upcoming Brainstorm Design conference is going to dive into how businesses are building experiences in the metaverse. For those who are interested, Fortune dug into the nitty-gritty to figure out how to buy real estate in the metaverse.

Rife with uncertainties, investing in metaverse properties is highly speculative in nature rather than prospective. In the virtual world, you can lose all your investments in a blink of an eye. However, the rapid shift to full digitalization in almost all industries can also potentially reap big returns on metaverse real estate investments. Currently, the most prominent metaverse platforms for buying virtual land are blockchain-based Decentraland and Sandbox on the Ethereum blockchain, run by a Decentralized Autonomous Organization (DAO) – a group of platform users. As metaverse development is still in its infancy, it offers attractive investment opportunities.

Even so, plots of land in the virtual real estate market may seem like odd investments. The truth is that they’re very similar to real-world real estate in many ways. In the long-term, this will depend on the future of the metaverse itself. Certainly, some very big and influential organizations – from Facebook (now known as Meta, of course) to Microsoft and Nvidia are betting big that it is essentially the “next generation” of the internet. This is likely to point to a healthy future for the digital land and real estate market. Decentraland is one of the largest you can mine ethereum with apples m1 decentralized metaverse platforms, established in 2017, where there are 90,601 individual plots of virtual land.

Investors who made purchases following the excitement of Facebook’s announcement now likely regret their decisions, as prices have tumbled more than 80 percent in some instances. Virtual real estate is still a relatively new phenomenon, but it has experienced some periods of rapid growth in its early existence. The Influencer Marketing Report May 2024 provides an in-depth look at the current state… In recent years, the landscape of content creation has witnessed a shift with the… There you can decide on things like the price, how close it should be to the central hubs, and what kind of potential it has.

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Or you can hold on to it and see just how high the price will go (remember, only a limited number of plots will ever be released). Your best bet may be to buy land on a secondary marketplace like OpenSea. Searching for “the Sandbox” on OpenSea or searching and navigating to the Decentraland page on OpenSea will bring up plenty of parcels that are for sale. Once you get a wallet, you will need to exchange U.S. dollars (or whatever currency you’re using) for a cryptocurrency.

Somnium Space is a virtual reality world built on the Ethereum blockchain and allows its users to purchase digital land, build homes and even eat at restaurants. You can travel through the virtual world and visit places that were built by other Somnium Space users. The world can be accessed on mobile devices as well as through desktop PCs or a virtual reality headset. Voxels is another metaverse built on the Ethereum blockchain where users can purchase land to build on and navigate through the virtual world’s roads and buildings. The average weekly sale price for land in Voxels reached more than $14,000 in early 2022, but has since fallen to less than $700 in August 2022, according to WeMeta. Sandbox is an Ethereum-based metaverse, or virtual world, where users can design, share and sell assets digitally.

Preparing to buy land

In the physical world, real estate provides us with shelter as well as places to do business and be entertained. The metaverse is getting a lot of attention lately and, in the opinion of many, rightfully so. But for the metaverse-curious — those just starting to dip their toes into the concept of virtual real estate — figuring out how to get started can be intimidating.

How To Buy Land in the Metaverse

Other concepts, such as digital billboards for advertising, provide new marketing opportunities for brands and service providers. Virtual real estate sales on major platforms failed to reach $1 million in the first week of August 2022, after topping $60 million per week in mid-November 2021, according to WeMeta. • The weekly average sale price for virtual land on Decentraland peaked at $37,239 in late November 2021, but fell to about $10,600 in August 2022. • Virtual real estate sales on major platforms failed to reach $1 million in the first week of August 2022, after topping $60 million per week in mid-November 2021, according to WeMeta. • In November 2021, metaverse real estate developer Republic Realm said it paid $4.3 million for land in virtual world Sandbox.

Ownership of land parcels is given through LAND NFTs with the specific coordinates on the grid and a reference to parcel details. To purchase LAND, users must have MANA tokens, which are also used to purchase in-world products and services. The heightened interest in metaverse properties has caused prices to increase further. Digital land sells from $6,000 to $100,000, but some are reportedly being sold for even much higher. One of the biggest sales the past year is a property adjacent to Snoop Dogg’s in The Sandbox. Chad Diefenderfer, a cofounder of MetaMetric Solutions, said it’s important to look for verified sellers of land if you’re buying on a secondary marketplace.

  1. If you plan on investing in metaverse real estate, look for areas that have the potential for development.
  2. Companies that are involved in the sale of products in the metaverse, or that may receive a cut of what others spend in the metaverse could be profitable investments, however.
  3. Moreover, a growing number are investing early to get ahead; some of these retailers include Tommy Hilfiger, adidas, Burberry, Gucci, Nike, and Samsung, but not only clothing retailers but also large retail banks such as HSBC or JP Morgan.

Some platforms may specify the wallet you have to use; others may be more flexible. Whatever you do, write down the seed phrase you’ve been assigned when your wallet is opened, because these are difficult (if not impossible) to recover, and losing your wallet means losing your assets forever. On most platforms, plots of “land” are represented by X and Y coordinates on a map that makes up the entirety of a metaverse world. Each plot is turned into an NFT, which is sold either directly by the cryptocurrency exchange for bitcoin ethereum and altcoins platform to a consumer, or by a secondary marketplace, the most popular of which is OpenSea. Once you buy a plot through an NFT, your sale is recorded on the blockchain of the given platform, and you become the sole owner of that piece of land within the metaverse.

There are only a limited number of plots of “land” in the two biggest metaverse platforms, the Sandbox and Decentraland, and both companies have said that they will never create more. In 2017, when Decentraland had its first metaverse land auction, Decentraland land prices were selling for around a mere $20 per parcel. Most metaverse platforms and NFT marketplaces require you to purchase metaverse crypto beforehand. It means you have to first register with a digital wallet – the wallet type depends on which metaverse platform you wish to buy land.

Although the cheapest Decentraland land parcel was selling for around $1270, the more expensive side was going for a sky-high $31,758 per parcel, close to the Central Plaza. You can check Decentraland land prices here on the Decentraland marketplace. You can purchase these digital currencies on crypto exchanges such as Binance or Coinbase, which also connect directly to your digital wallet. Once you have signed up with a digital crypto wallet and purchased some crypto, you can continue to the next stage and select the piece of land you wish to own. For example, large accounting firms PwC and Prager Metis have already acquired land in the Sandbox’s metaverse to offer their services and advise clients virtually.