In October, Tokens.com, a blockchain technology company focused on NFTs and metaverse real estate, 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.
“Rather than try to create a universe like Facebook, I said, ‘Why don’t we go in and buy the parcels of land in these metaverses, and then we can become the landlords?” said Andrew Kiguel, a co-founder and the chief executive of Tokens.com…
For those wondering why a company would want to invest in a virtual office in the metaverse, Michael Gord, a co-founder of the Metaverse Group, said that skeptics should look at the trends catalyzed by the pandemic…
The Metaverse Group has a real estate investment trust and it plans to build a portfolio of properties in Decentraland as well as other realms including Somnium Space, Sandbox and Upland. The internet may be infinite, but virtual real estate is not — Decentraland, for example, is 90,000 parcels of land, each roughly 50 feet by 50 feet. Among investors, there’s a sense that there’s gold in those pixelated hills, Mr. Gord said.
Let the artificially-induced-scarcity-fueled-boom begin!
Seriously though, this offers an opportunity to acquire real estate that otherwise might be very difficult to find online or offline. In the offline world, how often do significant new parcels of land or developments come available? If they can be bought, they are not cheap, they probably attract a lot of interest, and there might be restrictions based on what is already there or what is possible on the site. In the online world, it could be difficult to predict where users might show up, how long it could take for sites to develop, and what it all might be worth?
In the meantime, investors and speculators will wait and see what happens. The bet could pay off massively: if the metaverse is successful with a few years or even a decade or two, those who got in early in prime locations with the right offerings could gain a lot. And if the metaverse does not develop in this way or other factors go awry, the money lost will be in a long line of those who hoped for the best with property and nothing materialized.