What can you do with $ 69 million worth of artwork that doesn’t really exist, they just exist on your computer screen?
This is the question facing the Singapore-based investor, who calls himself Metakovan, who made headlines last month when he bought Pebble’s digital artwork “Every Day: The First 5,000 Days” at Christie’s.
The artwork was an immutable mark or NFT, a new type of virtual asset that has been certified and state-owned by blockchain technology. NFTs became popular in 2021 and their prices skyrocketed.
Mitakovan, whose real name is Vignesh Sendersan, plans to display the work of art in four virtual environments, working with architects to design exhibition complexes that the public can access through web browsers or virtual reality technology.
Do not rush to marvel and try to keep your cool, art is just one part of the new virtual world economy based on blockchain technology, where lands, buildings, avatars, and even names can be bought and sold as non-redeemable arguments , often taking hundreds of thousands of dollars. .
In these environments they are called metavers, or participatory virtual spaces, where people can roam with friends, visit virtual buildings and follow virtual events within these complexes.
The ambitious venture from Metakuvan, the world’s largest investor in non-tradable assets, comes after its group of NFTs and other crypto assets through the Metapurse fund was valued at around $ 189 million, according to NonFungible.com, a website that collects data. Record sales from NFT Markets.
The giants of reality unite
With this madness, the video game company “Atari” is planning to launch its virtual world based on “Blockchain” technology and the details will be announced soon, according to what the company reported for “Reuters” and seen by ” Al Arabiya ”. .neto “.
Atari blockchain head Frederick Chesnais said the online environments would be “very large” and added that NFT real estate could one day bring in millions of dollars.
NFT mania has led to a growing interest in Internet environments based on Blockchain technology. The most famous of these are Decentraland, Cryptovoxels, Somnium Space and The Sandbox, where virtual real estate prices are reaching high levels.
The Decentraland platform generated more than $ 50 million in sales, including virtual lands, avatars, usernames and wearable devices like virtual clothes.
Another plot of land in Decentraland sold for $ 283,567 on March 21, while Somnium Space said a property on its platform reached more than $ 500,000 on March 16.
Metaverse fans compare the rush to buy virtual land to the bunch of domain names in the early days of the internet, known as URLs or URLs.
Virtual land theory is similar to real reality, as the gathering of more people affects these environments, setting up land parcels in central locations that are in high demand due to the volume of visitor traffic.
Virtual lands are spaces where revenue can be generated in a million different ways, said Metaborough Fund Manager Anand Venkateswarn, known by default as Toopadur.
Some of the early investors in the virtual land of early purchase are now selling to businesses, said Samuel Hamilton, head of community and events at Decentraland.
Atari, ahead of its plans to open up its blockchain-based world, has licensed an old arcade within Decentraland and a casino is set to open, while an area called “Crypto Valley” is home to various crypto companies .
Decentraland also hosted a virtual fashion fair in collaboration with adidas, where the designs were sold at auction as NFT. They also attract the interest of musicians who can perform in space, selling tickets and merchandise like the NFT.
“We will have many world-famous festivals that all represent stages in the growth of this virtual world, and when we get to that point, we expect hundreds of thousands or even millions of people,” Hamilton said.
Last year, American rapper Travis Scott attracted an audience of 27.7 million visitors to five concerts at Fortnite, the popular online game owned by Epic Games.
Will the winter of the virtual world come?
Sandbox co-founder Sebastien Bourget described business within the virtual worlds as a young nation taking shape and predicted that the NFT-based economy would overtake the real world within a decade.
However, many experts in the new industry are warning of future risks for investors, with Cryptovoxels virtual world founder Ben Nolan saying: “I expect there will be a crypto winter in the next two months, the whole Bubble of non-tradable assets will explode and then all value will collapse. ” completely ”.
“Working NFT as an investment or as a way to make money is really unwise,” Nolan added.