Digital land and metaverse are all the rage these days, and with everyone trying to follow suit, there have been a lot of misconceptions about how much a property can fetch in the metaverse. Given the investment opportunity that it presents, many are also wondering about how to buy a plot in the metaverse.
Graana.com, Pakistan’s Smartest Property Portal, is here to help unpackage some of these important questions and tell you more about some of the highest fetching properties in the metaverse.
What Is The Metaverse
The metaverse is a decentralized virtual world where immersive experiences are created. Gamers and investors can use blockchain technology to buy digital assets in this virtual universe. These purchases are called NFTs and are fully transferable between players.
Some properties have utility and are useful in-game such as a plot where the size of the property is the place where your character lives and therefore has access to high quality or abundant resources in the game. Other properties might not be as utilitarian and are there purely for sentimental value.
The metaverse works very similarly to the real world where you buy land and properties based on their location, utility or sentimental value. The price of the land appreciates or depreciates over time. Land can be purchased or sold in a marketplace which is very similar to the real world.
When Facebook changed their name to Meta, the interest in the metaverse absolutely soared and caught the attention of Wall Street investors, something which has significant value to users. Metaverse is a concept that is relatively new and sometimes overwhelming, however, it offers significant rewards to those who take the early plunge.
How to Buy a Plot in the Metaverse
Buying land in the metaverse is very similar to buying real estate property, with some additional steps however, since there is usually no third party involved. The first step is to buy cryptocurrencies to help you in the purchase of your land. Currently, Ethereum is a very popular currency and is widely used. SAND and MANA are other popular choices with each of them tied to their respective platforms – The Sandbox and Decentraland.
These platforms are trusted and most commonly used because of their established infrastructure. Their company has earned a lot of popularity and trust from the community. They also have high profile celebrities endorsing their legitimacy. However, you will need an NFT wallet to store the transaction, with Metamask and Binance being some of the top choices.
There are other open-source marketplaces as well which include but are not limited to opensea.io and nonfungible.com. After you’ve loaded up your wallet with funds then the next process is just as simple as buying a listed property and transferring the funds to the respective owner.
Most Expensive Metaverse Properties
The most common question asked in the metaverse discussion is how much is a plot of land in the metaverse. There is no definitive answer, as the nature of this volatile market causes prices to fluctuate wildly. Properties have sold for as high as 2.4 million dollars with others costing just a few dollars.
Properties are valued in cryptocurrencies and the value in dollars is directly related to the cryptocurrencies dollar worth at that particular time. So, if a property is sold for 500 Ethereum, and if the value of Ethereum crashes to 1 dollar, then the property’s value in terms of dollars will be five hundred.
Listed below are the most expensive metaverse properties that have sold to date to help you understand the sheer scale of opportunity that exists in this space.
Fashion Street Estate
Sold for: 618,000 $MANA
In USD: $2,420,000
Arguably the most high profile sale in the history of the metaverse to date. You may not remember the name but the 2.4 million price tag might ring a bell. Moreover, the company ‘tokens.com’ made the purchase and acquired about 6000 square feet of land in the fashion district of the digital world.
Metaverse: Axie Infinity
Sold for: 550 $WETH
In USD: $2.3 million
The word genesis holds a rare sentimental value in the hearts of people. The Genesis block was one of the first blocks of bitcoin and this makes the genesis plots among the highest-grossing properties of all time. Moreover, it is the rarest Axie Infinity plot.
Hotel booking Place Market Place BookLocal
Sold for: 210,000 $MANA
In USD: $1,090,000
This was the second-largest purchase in the history of decentraland and was among the most valuable properties to exist in this particular space.
Land Parcel #4247
Sold for: 1,300,000 $MANA
In USD: $914,000
Land parcel means plot and the number is the literal number that was allotted to it. Above all, the special part about this plot is its proximity to major attractions in the game like Nifty passage. Moreover, it holds sentimental value for Chinese architectural admirers and was sold close to a whopping one million dollars.
Sold for: 225,000 $MANA
In USD: $756,000
This is not related to the real world Colosseum but a different project entirely. It fetched a lot of money, and is considered to be the fourth biggest purchase till date.
The Sandbox Purchase
Metaverse: The Sandbox
In USD: $4.3 million
These purchases were multiple in number and were not a single property. The company that goes by the name of “Public Realm” shelled out a collective of $4.3 million dollars on various properties which include but are not limited to private islands and various other properties. These properties have since then appreciated drastically.
Why Should You Buy Land In the Metaverse
The Metaverse may seem like the wild west at this point, and it is, Given its current volatility and the nature of decentralised products and services. This means that just like the old west had its golden rush of opportunities, the metaverse presents its fair share of opportunities for the bold.
Gamers and enthusiasts have a lot of value to gain in this space, and investing in land can pay off in the long term when the utility of the land increases. You don’t have to spend millions of dollars to own a virtual estate in the Metaverse. Properties which start from a couple of dollars and can be flipped instantly, So whether you’re a seasoned investor or a rookie dabbling in the world of investing, there’s something for everyone to capitalise.
As with all financial topics, make sure to do your own research thoroughly before investing as this is a very fast-paced and volatile space. However, if you’re thorough and calculate your risks and invest wisely, there is a lot of capital to be made. For more information, visit Graana.com, Pakistan’s Smartest Property Portal.