The metaverse is a hot topic that many major institutions have been using lately. The dream of owning a beautiful lakefront property is now possible, albeit digital.
The idea is to create a virtual world where users can purchase lands, assets, and collectibles. Recently, the prices of virtual assets have skyrocketed and many wonder if people have lost their minds.
Metaverse projects have been growing at an incredible pace and holders of these tokens have seen incredible returns. Projects like The Sandbox and Decentraland have taken the lead as their digital properties and assets grow in attention. Now we have reached a point where the sales of digital assets are approaching real-world value.
In early November a property on Decentraland sold for $2.5m. The property was sold to a Canadian investment firm that purchased land right in the heart of the fashion district (in the virtual platform). They intend to use the property to sell digital collectibles and assets to users on the platform. While the platform is very basic for now, many speculate on a future of metaverse projects where they can interact and walk through the cities via VR headsets.
Now a user on another metaverse, Sandbox, has purchased a digital luxury yacht for $650,000. The luxury yacht will forever live on the blockchain and can be traded to other users. The virtual yacht is nothing more than a poorly drawn 3D figure of a yacht but holds value to optimists who believe in a massive future of metaverse worlds.
This craze might end in disappointment. There are many different virtual worlds being created and assets do not transfer between them. If someone was to purchase expensive property on a project that later failed, their investment would go to zero. However, purchasing a good section of land on a successful metaverse might be worth a lot more in the future. It’s a volatile and risky investment when the industry is in its infancy.
Facebook has also talked about releasing its own metaverse, but not much has been detailed on how property and assets will be distributed.
Decentraland and Sandbox both had open opportunities for new users to auction assets, and Facebook will likely have a stricter monetization policy behind it, which will restrict ownership to corporations.
If metaverse proves successful we could one day meet for digital coffee in a digital cafe in the heart of the digital fashion district.