In November, Justin Bieber gave a concert that did not take place at a stadium. The concert took place in the so-called metaverse, the online world that pulls the corners of the internet into immersive experiences of the four dimensions.
Fans around the world watched the concert of Mr. Bieber’s avatar, who sang songs from the hit album “Justice”. But investors were watching too. As they prepare for an explosion in the electronic world, which seems to be just a few months away, they are blowing up concert venues, malls and other metaverse properties.
Interest in the sector skyrocketed in October when Mark Zuckerberg announced that Facebook would become known as Meta, an attempt to capitalize on this digital frontier. The global market for metaverse products and services is estimated to reach $ 1 trillion soon, according to digital currency investor Grayscale.
The metaverse is made up of different digital domains. Everyone is like a 3D city in which digital personifications live, work and play. Anyone who has been exposed to the popular Fortnite, Animal Crossing and Roblox video games has got a taste and knows about what these electronic kingdoms contain.
However, real estate investments in the digital world are still highly speculative, and no one knows if this boom is really the next big thing or the next big bubble.
Cryptocurrencies are the currencies of this digital world, as metaverse finance is based on blockchain – an accounting book that is digitally distributed and eliminates the need for external “participants” in financial processes, such as banks. Anyone entering the digital world can buy or exchange works of art, music, and even homes as nonfungible tokens (NFTs), which are blockchain-based collectibles and represent everyday objects. NFTs act as proof of ownership, and are not interchangeable.
In October, Tokens.com, a blockchain company specializing in NFTs and digital housing, acquired 50% of Metaverse Group, one of the first digital housing companies, for about $ 1.7 million. The Metaverse Group is headquartered in Toronto, but is headquartered in the digital world of Decentraland, in the Crypto Valley, which is the digital world’s answer in Silicon Valley. Decentraland also has centers for gambling, shopping, fashion and the arts.
From the day of the purchase, the company Tokens.com started the “construction” of a digital tower in Decentraland. Companies such as Louis Vuitton, Gucci and Burberry have also entered the metaverse through NFTs, a fact that fills company executives with optimism and indicates that they will soon be able to earn rental and advertising revenue from large companies like these.
Although the internet is vast, the digital real estate sector is not – Decentraland, for example, is made up of 90,000 plots, each about 15 by 15 meters. There is a rumor among investors that there is gold on these pixel hills, according to Michael Gord, co-founder of the Metaverse Group.
Last month, Tokens.com struck a $ 2.5 million deal at the Decentraland fashion hub. The company, which claims the market was the largest digital real estate transaction in history, plans to turn the area into a digital mall for luxury goods such as Rodeo Drive or Fifth Avenue.
The CEO of Tokens.com claims that this is the site that matters the most.
The digital real estate platform SuperWorld, which spans the digital world, offers 64.8 billion plots – each of which is for sale as NFT. The Taj Mahal is available for purchase, such as – most likely – the house where you grew up. Owners can buy plots for emotional or strategic reasons, but once they buy NFTs, they are entitled to a portion of any commercial transaction that takes place on that property.
“You can buy areas you love, whether it’s Central Park or the Pyramids of Egypt,” says SuperWorld CEO. “What you are buying is the digital land on which these properties are located.”
Copyright: 2021 The New York Times
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