Did you know Metaverse real estate sales could reach $1 billion in 2022?
The number of property sales in the virtual world has been in the spotlight, with record million-dollar transactions reported every week. People are scrambling to buy virtual land, a move that has seen renowned figures fork out millions to acquire a stake in the Metaverse.
From popular celebrities like Paris Hilton and Snoop Dogg to record label Warner Music Group and media giants like Samsung, many big brands are hopping onto the Metaverse hype train. And there are many reasons why one would want to buy land in the Metaverse.
Celebrities can use it to host concerts for their fans. For instance, singer Daler Mehndi who calls his land “Balle Balle Land,” recently became the first celebrity to perform in the Metaverse. But how do you buy real estate in the Metaverse?
What Is Virtual Metaverse Land?
Imagine a virtual world in which people can live, work, play, shop, and socialize-all from the comfort of their coach in the physical world. This is what Metaverse is all about.
The Metaverse is a virtual reality space in which people can interact with a computer-generated environment. Essentially, it’s an interconnected world of virtual communities where users can work, shop, and play using VR headsets, AR glasses, smartphone apps, or other devices.
In the Metaverse, people use avatars to represent themselves, interact with others, and virtually build a community. That means people can also play games and shop, including buying land and real estate in the Metaverse.
In this context, a Metaverse land is basically a piece of virtual real estate that is represented by a non-fungible token (NFT).
Each parcel of land in the Metaverse is on the blockchain and can easily be verified for authenticity. Like land in the real world, Metaverse land is purchased for a price and mostly paid in crypto. But unlike land in the real world, you can’t plant or touch it.
What are the Use Cases of NFT Virtual Land?
Virtual lands can be used for many different purposes. In most cases, NFT virtual lands can be used to:
- Host events, games, or experiences
- Set up and operate an in-house game business
- Build a virtual house on
- Speculate in the virtual land market
- Earn revenue through renting
For many users, land in the NFT Metaverse represents an opportunity to monetize virtual assets through advertising, renting, and flipping.
Why Buy Metaverse Land?
Like property in the real world, your use case for the land may differ. However, many people are buying Metaverse land for either entertainment or profit.
But what’s the motivation behind the record sales?
Turns out the most valuable land isn’t on this planet-but in the Metaverse.
If you’re an investor trying to mint millions through investment, you’ll want to consider buying real estate in the Metaverse. Land prices in this virtual world have risen by as much as 500% since the day Facebook was renamed to Meta in 2021.
The Metaverse offers the potential for significant gains with moderate to high risks, especially in the short term.
How to Buy Land in the Metaverse?
Fortunately, buying land in the Metaverse isn’t as complicated as purchasing property in the real world. Still, you have to follow some basic steps for that.
Step 1: Create a Digital Wallet
You can’t buy real estate property without money, and the same goes for virtual land. Sure, you can’t swipe your credit card for that, but you’ll need a digital wallet to purchase the cryptocurrency for your platform of choice.
For example, Decentraland’s currency called Manna is used to buy virtual property on their platform but not on other platforms like The Sandbox. MetaMask or Binary Binance Chain Wallet are great options as they both support multiple blockchains.
Step 2: Choose a Metaverse Platform
Next, you’ll need to decide on the Metaverse platform that meets your needs. The two popular platforms for buying virtual land are:
- The Sandbox
- Decentraland
The area and size of the land you’ll buy will vary depending on your chosen platform. For example, a piece of land on Decentraland measures 16m by 16m. Pick a Metaverse platform you like because you’ll be investing money in it. We’ll use the Sandbox in this tutorial, but Decentraland is also a great option.
Step 3: Set Up Your Wallet in the Sandbox
Before you can bid on anything, you’ll need to link your wallet. Follow these steps:
- Click on the “sign in” button in the top right corner of the Sandbox map.
- If you’re using “Metamask,” click on its icon. You’ll now need to authorize Sandbox’s access to your wallet.
- Click “Next” on the pop-up that appears
- Click the “Connect” button to link your Sandbox account to your wallet. Once prompted, enter your email and choose a nickname.
- Click “sign” on the Metamask signature request to complete the process.
Once you’ve linked your account successfully, you’ll be able to see your account balance and profile picture in the top right corner.
Step 4: Buy Sand or Ethereum
Before buying a parcel of land in the Metaverse, you’ll need SAND or Ethereum tokens in your wallet.
Buying ETH is recommended as most Sandbox real estate sales only accept Ethereum. You can use your credit card to purchase Ethereum tokens with your Binance account. Once you’ve purchased your crypto, you’ll need to transfer it to your wallet.
Step 5: Purchase a Parcel of Land
Now you just have to browse the different pieces of land available and select the one you want to buy. You’ll be able to see how far your property is from major landmarks. Prices tend to be high for properties close to major locations or celebrities’ lands.
Just click on the piece of property you want to buy to see the price and other information. You can place a bid or buy outright.
Is Buying Land in the Metaverse Safe?
This is perhaps the biggest question in the minds of those considering buying land in the Metaverse. Much like buying land in the real world, buying land in the Metaverse is also a risky endeavor.
First, the industry is largely deregulated, meaning if you fall in the hands of a scammer, channels of seeking legal redress are virtually non-existent.
Even if you don’t get ripped off, there are technical issues to consider.
First, if you forget your password, regaining control over your account is overly complicated. The internet is full of cases of millionaires who were locked out of their crypto fortunes due to forgotten or lost passwords.
But as long as you don’t get scammed and you can remember your passwords, investing in the Metaverse is safe. Everything on the Metaverse is secured on blockchains with smart contracts, making it nearly impossible for anyone to steal your virtual real estate.
In Summary
Buying real estate in the Metaverse has become the trend due to the new advanced technologies in the crypto world.
Today, you can easily own real estate in the virtual world as long as you know how to navigate the virtual world and have the monetary resources. These virtual lands can be used in many ways, including hosting events, speculating, and earning revenue through renting.
Technology Consulting Services | Retail Consulting Services | Consumer Goods Consulting
At Ollen Group, our technology and strategy consultancy services are up to date with consumer shifts in the Middle East, and the necessary steps needed to leverage next-generation technology to improve your retail experience for customers - including the development of different aspects to be part of the metaverse and cope with the demand for digital progression. Ollen Group technology consultancy services, retail consultancy services and consumer goods consultancy services offer turnkey solutions from strategy to execution, as well as design, development, and deployment.
Read our latest insights, ideas, and perspectives that explore the trends shaping the future of business and society. Our consultancy services go hand-in-hand with these insights, confirming our position as industry leaders. Get in touch to find out more about our consulting services and industry expertise.
