What makes giant banks like (JP Morgan) of America, major brands like (Adidas) and ordinary people tend to buy land in the virtual world of “Metaverse” that does not exist on the ground. According to a report by the Center for Finance, Technology and Entrepreneurship, virtual land deals last year totaled $ 350 million (26 267 million) in Sandbox, the largest digital ownership platform. Another $ 110 million (84 84.2 million) transaction took place in Decentraland, Metaverse’s second largest platform.
What are “metaverse”?
Metaverse is not a single digital space. It is a network of virtual reality worlds, created by companies and platforms, where users can interact, play games, follow events and buy land.
Horizon Worlds is one of Metaverse’s most popular weapons. Created by Facebook, whose name has changed to META today, the tech giant has shifted its focus to virtual spaces.
Other brands have also announced their digital world, as Manchester City plans to build its first Metaverse football stadium in partnership with Sony.
Johnny McMamelley, CEO of CryptoClear, bought his land in The Sandbox last October. So the best way to see it is for it to take the real world and turn it into digital images beyond models like Zoom. ”
As for why people buy virtual real estate? For some, it is an opportunity not to be missed, although market uncertainty and price volatility make it a risky investment. “It’s like any new investment, any new asset class. When I went into Bitcoin and it was $ 300, I was told it was very risky,” McCamley, 23, of Belfast, who bought virtual land from Metaverse, told Sky. News. Same with the $ 4 cryptocurrency. “I think getting a plot of land in Decentraland for $ 4,000 is a bargain.”
McCamley plans to leave his purchase on hold for 10 years and says: “I think Metaverse will mature in about a decade and I will consider selling the land when that time comes.”
Landowners can also use their virtual spaces to create experiences that others can enjoy. “Community-owned plots are my favorites,” McCamleigh adds.
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Find a home in the virtual world
Finding the perfect home in the Metaverse area is like real life. There are paved lands with roads and some of them are near desirable areas such as “fashion” or “museum” areas, which have a higher price and will be more attractive investment opportunities.
In Sandbox, the more crowded central areas near other attractions are much more expensive than the newer suburbs. Who your neighbors are will also affect the value of your property.
In September 2021, rapper Snoop Dogg announced his digital Snoopverse show on The Sandbox. Two months later, a property near his land was sold for more than $ 450,000 (350 350,000).
However, unlike traditional property purchases, there is no third party or legal presence that can guarantee the legitimacy of the agreements. This can be dangerous when buying from a secondary market like OpenSea, where cryptocurrencies are used for purchases.
In addition to landowners, there is a new generation of “meta-architects” who design virtual spaces.
Traditionalist architect Stavros Zacharias has started designing for the digital world in south London after the pandemic after his brother Adonis Rhino founded the NFT Interchangeable Symbols market, where the 37-year-old recently designed shops for Fashion Week.
Zakariadis said: “At Metaverse you can tell what is going on around you and showcase your products. Thus, we can offer meeting spaces for different people, especially in the present time in the presence of Corona and in light of the distance between people created by the epidemic over the last two years. “
“From the super-scientific worlds, you can have floating buildings that rotate and cross to the other side of classical and historic architecture styles,” he added.
Zacharias believes that metavers can open doors for those who have no connection in real life. “I was thinking about how to change access, for example, a person who does not have the same ability to navigate could equate to metavers,” he says. He asks why not?
Many warn that these investments could be shaken. YouTube platform Mitch Investing, from Birmingham, regularly reviews topics such as personal finance and emerging technologies. She believes metavers promises to become part of our daily lives can be overestimated.
A Mitch Investing spokesman says that early in its development it would be like investing in a company that has only one year to work. “I’m not sure if it will start or not, and I’m not very sure where the company is going, or how the business model in it can evolve … It ‘s my guess,” he says. There is a concern that not all virtual worlds will work. “Attracting quite a large number of users.
The platform warned that “there could be thousands of metavers like websites today. Therefore it is impossible to know what the end of the game is.”
The UK Financial Conduct Authority has described crypto assets as “extremely high risk speculative investments” and warned that the people who trade them should be prepared to lose all their money.
But there are also wider concerns for the safety of users in terms of internet harm. The newly introduced internet security bill is expected to take into account activity in Metaverse, where companies are required to take action if their users commit fraud, including those in virtual reality spaces.