13 September, 2022
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Metaverse Real Estate: Investing in the Internet

13 September, 2022

Samsung, Adidas, and Atari have already invested serious cash in metaverse real estate. But why? 

As the metaverse grows, so does the need for metaverse real estate. Similarly to the real world, investors can purchase plots of virtual land, acting as programmable spaces. Within these plots, users can carry out countless virtual activities. Even Snoop Dogg has bought his own “Snoopverse” on The Sandbox platform. 

Big businesses are also investing significant amounts of money into virtual real estate, with powerhouses like Atari, Adidas, Samsung, and PwC jumping into metaverse marketing by purchasing metaverse real estate in Decentraland and The Sandbox—both metaverse gaming platforms. Samsung has already launched its virtual location, known as Samsung 837X in Decentraland, offering an immersive experience for users with NFTs, games, and product introductions. Adidas too have announced their plans to fill their plot of land with exclusive branded content and experiences for users. Clearly big companies either see the metaverse as a promising marketing opportunity, or as the future of our daily lives.

Before we delve into the world of virtual real estate, let’s first establish what the metaverse is. 

What is the metaverse?

To put it simply, the metaverse is a virtual-reality space where users can interact within a computer-generated world. It’s a broad term that’s hard to define as it isn’t any specific type of technology, but rather represents a shift in the way we use it in our everyday lives, whether that be shopping, gaming, or socialising with friends online. The metaverse incorporates all aspects of our physical daily lives and makes it possible to do it virtually, including purchasing metaverse real estate!

How does virtual real estate work? 

As you’ve probably guessed, metaverse real estate can only be purchased with cryptocurrency. Once this transaction is made, lot owners receive a unique piece of blockchain code that serves as a deed of ownership, much like a physical document would. After that, owners can do pretty much anything with their plot of land. While Adidas and Samsung are turning their plots into virtual stores, individual users might simply want to make a replica of their physical house. The realms of the metaverse make anything possible.

Similar to physical real estate, how to buy land in the metaverse is dependent on brokers and property managers. However when operating in the virtual world, managers are not required to have a real estate license and are not regulated by any third-party organizations. If you’re considering purchasing a plot of virtual land, it’s important to work with someone you trust. 

What does the future look like for metaverse real estate?

It’s hard to say. Right now, the metaverse real estate industry has fallen by 85 percent after hitting its peak in late 2021. This is largely due to the recent crypto crash, but also a slower-than-expected metaverse adoption and a lack of purchase volume. 

That’s not to say that virtual real estate won’t increase in value. The crypto market is volatile, and is expected to skyrocket again in the near future. Experts predict that crypto will not only go back to its record highs of 2021, but Bitcoin could surpass the value of $100,000

CEO of Metaverse Group (a virtual real estate company) Lorne Sugarman isn’t fazed by the current dip in value, saying “The vast majority of utility is still there, but it’s declined in price for other economic reasons.” His company expects to hold its virtual properties for years to come as metaverse adoption picks up the pace. 

How to buy land in the metaverse…and should you?

Right now is a good time to learn how to buy metaverse real estate, since prices are low and expected to rise, but it’s still important to understand the risks. Metaverse adoption is uncertain, and if you can’t afford to lose your investment then virtual real estate is not the best option for you. 

If you do decide to invest, buying and selling real estate is straightforward. Simply choose which platform you want to invest in (the most common are The Sandbox and Decentraland) and use your digital wallet to pay for your virtual real estate. Once the purchase is complete, you’ll receive an NFT representing your virtual property. 

Check out LOX Network’s blockchain solution

Our multi-functional hybrid platform is a time-saving and cost-efficient solution, lowering the entry barrier into NFT and DeFi markets and making the metaverse more accessible to all. We want to promote mass web3 adoption and encourage technical innovation by giving developers the chance to utilise our platform. 

We’re demonstrating how blockchain technology is changing the world as we know it, particularly through the creation of the world’s first decentralized IMEI blacklist. Find out more about our platform here.  

Jeremy Rodgers
Content Manager

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