(WBRE / WYOU) – O pioneers! For those looking to find uncharted territories, there are still undiscovered lands. They are real estate sold through the metaverse. If you are confused, you are not alone. Exploring the Earth on the metaverse first requires a solid understanding of what the metaverse is. One problem: the definition is constantly evolving.
One explanation is that the metaverse is a digital parallel universe to the real world – something akin to cyberspace – that encapsulates virtual reality, artificial intelligence, gaming and mobile technology. In a VICE article, venture capitalist Matthew Ball suggested that the metaverse be a 3D version of the Internet and computing. Andrew Kiguel, CEO of Tokens.com, describes it as the next iteration of social media where users can meet and interact in an immersive 360-degree world.
So what is the value proposition of such a new concept? Metaverse real estate sales are reported to reach $500 million in 2021 and industry experts expect them to double this year, according to CNBC. Some of the brands already on the market include Atari, McDonald’s, Death Row Records, Adidas, and Samsung. Real estate developers in the Metaverse sell everything from virtual private islands (originally $15,000 each) to land next to celebrity virtual mansions ($450,000 to be next door to rapper Snoop Dogg).
Fund That Flip has put together information on how to get started in real estate investing in the metaverse, and why you might want to. The information was sourced from news articles, tutorials, and explanations from experts in the crypto and investment field.
What are Earth metaverses?
In this shared virtual space known as the metaverse land, real estate purchases are made through virtual real estate platforms. It is possible to purchase everything from land plots to structures. Availability is limited, which often leads to competitive bidding among buyers. Purchases include non-fungible tokens, or NFTs, which act as real verbs, and the blockchain acts as a record, providing a record of the transaction. Once the metaverse land sale is completed, the owners can sell, rent or build on their virtual property.
What are the platforms for buying land in Metaverse?
An increasing number of platforms sell properties on Metaverse. The big four are Decentraland, Sandbox, CryptoVoxels, and Somnium Space. CNBC recently cited research from MetaMetric Solutions indicating that sales of the Big Four in 2021 exceeded $501 million. The same report predicted potential sales to reach nearly $1 billion.
As for available Big Four inventory, CNBC said in February 2022 that 268,645 packages of various sizes were on sale. Decentraland and Sandbox dominate the space with the most sales, according to NonFungible. These two platforms run on Ethereum, the blockchain that powers financial services.
Why invest in metaverse real estate?
Buying metaverse land is still speculative and highly risky. “There are big risks, but potentially big rewards,” Janine Yorio, CEO of real estate investor Metaverse and consultancy Republic Realm, told CNBC. That’s why for potential buyers, researching the real estate metaverse to get a clear understanding of its ins and outs is imperative.
In an article for The Motley Fool, real estate broker and general contractor Kristi Waterworth recommended spreading your investment across multiple platforms as the safest bet. Big companies and corporations such as JP Morgan, McDonald’s, Atari, Samsung and Walmart are jumping into the real estate sector. Companies like these take care of advertising spaces like billboards in online meeting places, selling products in virtual retail stores, hosting real-time events like online concerts, and connecting with future customers through immersive digital experiences.
To buy land, get a wallet and add money
Are you ready to seriously explore the real estate metaverse? First, get a digital wallet for cryptocurrency. This is necessary to access the blockchain and store cryptocurrency. Some of the browser-based options to explore are Metamask or Binance Chain Wallet. These allow basic functions such as buying, storing, sending and exchanging tokens. Whatever cryptocurrency wallet you choose, you will also need to connect with the platform you are looking to make a purchase from, and have the right type of funding/crypto (tokens like SAND or MANA) used within that platform.
Next, explore the markets
There is nothing wrong with window shopping. Take a peek at what’s offered on the metaverse real estate platforms to see if something appeals to you. For example, in Decentraland, you can head to the land offers section. There, you can scroll through recent listings and find all kinds of properties, even art galleries. To really navigate the platforms and get the full picture of the offerings, you will need a cryptocurrency digital wallet in order to set up an account and get full access.
Bid or buy land
What is the next step? It is possible to buy the land directly for the mentioned amount. If going this route, buyers will be directed to OpenSea, the NFT marketplace where metaverse land transactions take place. If you prefer to submit a bid, there is a bid button to enter your bid.
If the seller does not bite, the cryptocurrency presented in the bid will be returned to your wallet. If you get a nod, you’re on your way to OpenSea to complete the transaction. After you’ve determined the art gallery you’ve been craving, browse the platforms to start creating collections to display.
This story originally appeared on Fund That Flip and is produced and distributed in partnership with Stacker Studio.