Drew | Business Insights

Land sales in the Metaverse: real estate boom

Written by Drew's editorial team | Aug 6, 2022 9:20:00 PM

The metaverse has ceased to be a futuristic vision typical of science fiction to become a current reality. Finally, the actions that we thought were exclusive to the physical world can be replicated in this virtual parallel universe without making it any less real for us. Social networks like Facebook are already part of this expansion to another level of the typical virtual reality that we know.

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When we say that the metaverse allows us to replicate actions in the physical world, it is not an exaggeration, since the accelerated advance of technology in artificial intelligence is contributing to the development of augmented reality, capable of generating in people the same experiences and sensations that they would have in the real world.

Just as in the physical world we can work, study, meet people, travel, and shop, we can also do it in the metaverse, and the first evidence of these immersive experiences is already going viral.

One of the actions that had the greatest impact on the real estate industry is the sale of land in the metaverse, which is increasing sales and expanding growth opportunities for companies belonging to this sector, outside the traditional scenario. In this article, we tell you what this new trend is about and everything you need to know to buy from the metaverse.

 

Origins of real estate investments from the metaverse

The origins of land sales in the metaverse can be traced back to a trivial practice by Plai's founding entrepreneur, Logan Welbaum, which began more as a pilot test to see what results from it. Plai is a platform that helps SMEs to promote their brand on massive digital platforms.

Wellbaum has a TikTok page with 460,000 followers that he uses to talk about the metaverse and share advertising tips. But before becoming a towering figure in business, he worked at Facebook and Google creating advertising strategies for companies.

One day, he heard about the metaverse and began to investigate more about this concept to use it to his advantage. He decided to enter in 2021 to try his luck buying a digital piece of land in a metaverse founded by two Argentines. In its early days, he paid less than $2,000 in tokens for this virtual piece of land. Today, that land would have amounted to $40,000.

The success of his first purchase prompted him to make a second one in which he acquired several virtual properties at a price that would multiply to his benefit in the future. Although he doesn't sell them for now, he reckons the waiting time will pay off in profits. At the moment, he is dedicated to working on his Decentraland metaverse, bought from the two Argentines.

From there he connected with his thousands of followers around the world and many more users were inspired by his business strategy to buy land in the metaverse, reaching more than 100 million investments in virtual real estate in just one month, something unthinkable in other times for the real estate sector.

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Where to invest in real estate from the metaverse

Welbaum advises that the best thing to do when it comes to land sales in the metaverse is to invest in areas that have high traffic potential. In this regard, the businessman recommends 7 possible scenarios.

  • 1. Somnium Space: It is a platform built on blockchain and Ethereum.
  • 2. Axie Infinity: A piece of land for $2.4 million was recently sold in this area.
  • 3. Mirandus: It allows you to create property titles for about 2000 dollars.
  • 4. Star Atlas: Its theme is oriented toward space exploration. It is a game where the landowners can vote on the decisions that are made in the metaverse. Although Wlbaum acknowledges that land cannot yet be purchased on it, it is hoped that it will be feasible in the short term. Can you imagine buying land on Mars or Jupiter?
  • 5. Illuvium: This is undoubtedly one of the most interesting. Its strategy is similar to that of Pokemon, where players develop epic battles in stadiums.
  • 6. Decentraland: It has a fund of more than 500 million euros to optimize the metaverse. In addition, the participants can also make decisions.
  • 7. The Sandbox: It is a metaverse that offers full gaming experiences and land sales in the metaverse, which is attracting major multinationals like Adidas. It is one of the metaverses that offers the most advantages to companies that wish to sell their products online.

 

Are there risks of investing in the metaverse?

However, Welbaum also warns that while land sales in the metaverse offer good profit opportunities, it can be risky to invest if people stop using it or better competitors enter the game. In short, as in most actions in life, some will be safe and others riskier.

The metaverses, like the physical world, have their rules, which must be followed when thinking about choosing and investing in virtual land, which is expected to bring us juicy profits in the future.

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Summing up, what seemed like a distant reality now takes on accurate dimensions in the present: the metaverse exists and is working. How does it? Replicating the activity of the natural world as if it were a game with its own rules and possibilities. Land sales in the metaverse are one of them and it is achieving progressive success. Perhaps one could ask what the limit and the real risks are, to which we will probably answer: the same as in the physical world.