Are you buying digital real estate yet? Land NFTs in the Metaverse are something to watch.

Posted on November 26, 2021. Filed under: Digital Real Estate / NFT, Informed Investor Alliance, Making Life Easier | Tags: , , , , , |

As I’ve been experiencing the blockchain revolution in real estate unfold, I’m seeing a whole new version of ‘real estate’ come into the picture…digital property. You’ve probably heard about the Metaverse since Facebook changed their name to Meta. But did you know that companies like Atari, Nike, and Binance have bought space in these metaverses with plans for commerce & connection? And you can too??

A focused real estate lens on NFT research & information

First of all, what exactly IS owning land in the metaverse? This digital ownership concept is executed through NFT’s, or Non-Fungible Tokens. NFT’s are one of a kind, unique, non-interchangable data stored on a digital ledger (aka the blockchain). NFT’s can be artwork, audio, video, and more… with all sorts of utility attached to them.

The metaverse realm offers a space to provide utility for these NFTs whether it’s displaying your digital art, latest fashion line, hosting a concert, or selling your product in a virtual store. The metaverse is vast and there are tons of things you can do, see, and buy in them. My particular focus has been ‘real estate’ in the metaverse. Within these digital universes you can basically purchase plots of land, build them out, flip them, rent them, or run a virtual business in them. Since these are all things we do in traditional real estate, I’m watching the space curiously. 

So far it’s confusing, each ‘neighborhood’ or metaverse is different, and there are not a lot of resources available to help determine best platforms and plots. This makes me wonder if we will have virtual real estate brokers in the future? At first I thought no… because it’s just silly digital land, we could eliminate agents and advisors. And then I saw the prices. In many cases real estate NFT’s are a hefty investment which completely justifies an advisor or guide of sorts. We’re talking thousands, hundreds of thousands, even millions of dollars. For.Digital.Land.

Top Metaverse projects by market cap:

As of November 2021:

  1. Axie Infinity: 8.3B
  2. The Sandbox: 6.4B
  3. Decentraland: 6.2B

A resource I use to check the various Metaverse rankings is: https://www.coingecko.com/en/categories/metaverse

Digital currencies, not the almighty dollar, are used in Metaverses

Many metaverses have their own currency, for example Decentraland has the $MANA token used to purchase NFT’s, etc. while playing the game. The Sandbox’s token is called $SAND, and Axie Infinity’s token is $AXS. It’s important to note that you do not have to own land in these metaverses to participate, but you do have to interact using their own individual digital currencies.

There is not one ‘central hub’ for NFT land; you can purchase Decentraland and Sandbox for resale at opensea.io, you have to purchase Pavia land from the Cardano NFT search (cnft.io), Axie from the Aixe game. Every time you’d like land in a different metaverse, you’ll need to convert your currencies.

Sometimes you have to scout out how to purchase the currency that will ultimately secure the digital land, and it can take hours down the rabbit hole. Some currencies are not authorized in certain countries or jurisdictions. It’s very interesting to see these digital communities working to create the infastructure and grow. It reminds me of trying to build a website in 2007. Will be interesting to see how seamless things become in 10 years.

How to price land in the metaverse

NFT land comps seem to currently be defined by a ‘floor’ price, which is the lowest listed price on the marketplace for that NFT series at the time. Keep in mind as these metaverses evolve there are becoming popular areas, which will ultimately sell for higher prices. The 2.4M record purchase in Decentraland recently was in the ‘fashion district’. The wild card is how long will these areas be popular – since NFT’s are so new there are really no statistics on sales trends, cycles, etc. For now, here is a baseline for the popular metaverses:

Decentraland property floor: 3.33 ETH

Axie Infinity property floor: 3 ETH  More info on Axie; it’s sold out for now. 1 of 4 phases sold.

Sandbox property floor: .7 ETH

Pavia property floor: 231 ADA

Other interesting metaverses to note:

Bloktopia – offers land and fractional ownership of land

Upland – game with a focus on real estate investing via crypto channels. Addresses are mapped to real world addresses…interesting! 

Become the crypto mayor of any city in the world:

Map.Cryptomayor.io – And yes…I’m the crypto mayor of Mission Viejo, CA 😂 Gotta have a little fun.

Keep in mind ALL of these metaverses are VERY speculative, many without a working product yet. Please don’t jump in on a whim. It’s critical to do your own research and keep a close eye on how the space is unfolding. One thing is very certain, this will be a part of our future in some way, so keep it on your radar!

Would love to hear what Metaverses you or your family are participating in, and to what level, if any. Want to chat more? Comment below or message me on Instagram, LinkedIn, or your favorite social platform.

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    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

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