Many People Buy Land in the Virtual World of Metaverse, For What?

Jakarta, CNBC Indonesia – Some people shake their heads when a number of investors and artists decide to buy land plots on the Metaverse. Whereas the Metaverse is a virtual world and no physical land is owned.

Token.com CEO Andrew Kiguel tries to explain this phenomenon. According to him Metaverse is the next form of social media. There users can go to carnivals, music concerts to museums.

A number of artists including Justin Bieber, Ariana Grande, and DJ Marshmello put on a show in the virtual world using virtual. Even Paris Hilton hosted a new year’s party on her private virtual island. This can be a new business field for land owners.

“An area where people gather will definitely be much more valuable than an area that doesn’t have any events,” said Andrew Kiguel. “These gathering areas are becoming invaluable to advertisers and retailers and will seek to find ways to get in there to access that demographic.”

Another reason to invest in buying land on the Metaverse is the potential for profit from rising prices. Andrew Kiguel’s own company recently purchased digital land in Decentraland, one of the popular Metaverse worlds, for US$2.5 million.

“The price has gone up 400% to 500% in the last few months,” said Andrew Kiguel, as reported by CNBC International, Thursday (1/13/2022).

Another popular Metaverse world is Sandbox, where Junine Yorio’s virtual real estate development company Republic Realm spent $4.3 million on a virtual plot of land.

Junine Yurio revealed that the company sold 100 virtual private islands last year for $15,000 each. “Currently the price of the digital islands has become US$300,000, which happens to be the same as the average house price in America,” he said.

The next reason is about fun. For example, a celebrity is building a virtual Metaverse house, and someone is willing to pay a fortune to be a neighbor. This can happen in the virtual world but difficult in the real world.

Another pleasure, the land owner can renew the building, decorations and contents quickly when they are bored with a cheaper cost if we do it in the real world.

It is also worth considering the developments carried out by technology companies to touch the Metaverse, which will create greater earning opportunities.

For example, Meta, previously known as Facebook, is developing a 360-degree immersive world that people will access through Oculus Meta’s virtual reality (VR) glasses.

Grayscale, a crypto asset management company, recently issued a report that says the digital world is growing into a $1 trillion business in the near future.

Buy Land on Metaverse Risky Investment

Although it offers a large amount of money, buying land in the Metaverse should be considered carefully. Investors should consider all the worst risks and not only look at the financial side of their investment.

“This is very, very risky. You should only invest your money if you are ready to lose it all,” says Janine Yorio. “It’s very speculative. It’s blockchain based and as we know, crypto is very volatile. But it can also be very useful.”

[Gambas:Video CNBC]

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