We have been hearing the financial community uttering the word “NFT” and “Crypto” and it doesn’t stop there.
Financial investments in the NFT art sector has been increasing in demand especially those in connection with real estates.
For the digital world, money is cryptocurrency, finance in the metaverse is powered by blockchain. Anyone entering the digital world can purchase or trade musics, art and homes as nonfungible tokens or NFTs which are blockchain-based collectibles that are digital representations of real-world items. NFT’s enables a proof of ownership and is not interchangeable.
A virtual real estate with the size of 500 square meter has sold for $2.43 million which has broken the record for the largest ever Metaverse land acquisition. $106 million worth of metaverse land sold last week (Nov 22 and Nov 28) according to data from DaapRadar. The activity was “booming” on The Sandbox, Decentraland, CryptoVoxels and Somnium Space amounting a hefty $105.8 million worth of trading volume among 6,000 traders. All four of these metaverse projects are built on the Ethereum blockchain. Metaverse Group has purchased more than double the previous record for a sale of land or property within a virtual reality world.
For real estate investing in the metaverse, it is still highly speculative and no one knows for its potential if it will be the next big thing or the next big bubble. Technologist has predicted that the Metaverse will grow into a fully functioning economy within the few short years alongside with synchronous digital experience that will be incorporated to our lives. These digital experience will soon be as common as our email, social media and whatsapp.
In October, Tokens.com, acquired 50 percent of Metaverse Group, one of the world’s first virtual real estate companies, for about $1.7 million. Metaverse Group is based in Toronto but has virtual headquarters in a world called Decentraland in Crypto Valley, which is the metaverse’s answer to Silicon Valley. Decentraland also has districts for gambling, shopping, fashion and the arts.
Since that acquisition, Tokens.com has broken digital ground on a tower in Decentraland. Well known luxury brands such as Louis Vuitton, Gucci, Burberry and others have already entered the metaverse via NFTs, a move that makes company executives optimistic that the Tokens.com tower will soon generate revenue from leases and advertising for brands like these. There was also a recent announcement from Meta (previously known as Facebook) that Microsoft and Nike has been focusing on Meta, NFT simulated business models. With global names entering the Metaverse at an early stage, it will be direction set for competitors within the industry over the years. We will be witnessing more activities and event being held in the metaverse.
When Mark Zukerberg (founder of Facbook) announced that Facebook would be known as Meta, the interest for digital universe skyrocketed the past few weeks. This is a quantum leap to capitalize on the digital frontier and the forecast of goods and services rendered in Metaverse would exceed $1 trillion according to digital currency investor Grayscale.
(Image source: 91mobiles.com: What a social networking metaverse could look like, Kshiteej Naik)
In the entertainment industry, Justin Bieber has performed a live concert in the four-dimensional experience, concert within the Meta universe. Recent other Metaverse online world performance includes Ariana Grande, Weeknd and Travis Scott.
Within the metaverse realm, there comprises multiple digital realms such as 3-D virtual city where avatars live, work and play. Those that have experienced the realm expressed that it is similar to the popular video games like Fortnite, Animal Crossing and Roblox universe. The experience includes streaming of live avatar movements, gaming, streaming video within a virtual reality where individuals interact within each other. This is the new future the world will be experiencing in the coming years.
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