While we, as a company, solely focus on raw land throughout the United States, we are quite well-versed in upcoming trends when it comes to anything related to "land". We have been watching virtual land for some time and figured it may be of interest to at least learn about it.
Virtual land sounds absolutely crazy to most people, but the value and use could surprise you, especially the return on investment. While investors should take caution in this new emerging tech, it may at least be interesting to learn about it should we see the MetaVerse take hold over the next ten or so years.
The Ultimate Guide to Understanding MetaVerse Land
The MetaVerse, in general, is the expectation that users will socialize and meet virtually as a new norm in the future. Things like games, tutorials, office meetings, art galleries, exploring monuments, and much more are all being built by several companies. Augmented reality and Virtual Reality are expected to be one of the biggest forms of emerging tech for the next 20 years. MetaVerse Land, in basic terms, are digital plots of land, similar to parcels we have with normal land. These virtual plots of land are often found within larger full production games or online platforms; they are buildable and can be monetized in several ways. The overall goal for a game or MetaVerse that offers virtual land is to gain a large community of players in the virtual world. Those that own the land in this virtual world build on the land, essentially helping shape the future of the game with attractions.
The whole use case of this is to capitalize on the gaming and virtual market early. This gives individual investors the opportunity to build, make passive income, or flip their parcel to other investors should the game grow in popularity.
The Rise of Virtual Land: A Timeline of Popularity
Around 2017, some companies started development of virtual land in the form of NFTs, which are tied to Blockchain. This alone is a complicated subject which we will get into next. It should be noted that its full potential is still in very early development, and the future is unknown. Overall, the real hype came when large investment companies started getting involved. Ever since Facebook announced their name change to Meta and literally changed the whole focus of their business, the prices of virtual land skyrocketed. Likewise, companies and people like Adidas, Nike, Gucci, Steve Aoki, and even Snoop Dog purchased virtual land in a virtual world called SandBox. While each person and company may have different goals with their land, there is no doubt they collectively see a future in the MetaVerse and want a part of it.
The Significance of Virtual Land
Most will look at virtual land and just see a picture online in the form of an NFT, aka a Non-Fungible Token which is tied to crypto currency blockchain. Think of them as a virtual baseball cards if you haven't seen one yet. These are traded on platforms like OpenSea for crypto or even dollars. Aside from the NFT, they are more like verification of ownership and give access to your land within the game. The NFT is mainly just an easy way to buy and sell the land on the open market using a single blockchain tied image.
These NFTs are part of a greater vision in the emerging MetaVerse, with the primary focus currently being on ownership for development within a gaming platform. The gaming industry, valued at $180 billion, sees virtual land platforms and investing companies as key players in shaping the future. Beyond land ownership, gaming companies are increasingly exploring blockchain-based games of various genres. This innovative technology enables users to trade in-game items or tokens, providing companies with a share of profits and allowing players to earn real money. The upcoming games are anticipated to attract a large player base, aiming to challenge popular titles like Minecraft and Roblox for market dominance.
Currently, the most anticipated successful game that will utilize these NFT virtual worlds is SandBox. It is expected that we will see several similar games entering the market in the coming years. Major retail companies are eager to participate in the gaming industry, considering that there are approximately 3.1 billion gamers worldwide. This presents a lucrative opportunity for brands to engage in advertising and brand promotion within this extensive community.
Virtual land provides these companies with a unique chance to participate in a large-scale game without having to develop their own game, which might not succeed. By owning land within the game, they can create content within an existing user base. Similar to real-life properties, they have the freedom to develop various structures on these plots and be as creative as they desire. Here are some of the current developments underway- - Brands Buildings Theme Parks (Attracts visitors and engagement)
- Casinos (Uses virtual in game currency that can be exchanged to local currency )
- Concert Venues (real bands playing virtually)
- Games within the Game (Allows players to win in game currency or have fun)
- Billboards (Free advertising to gamers within the game)
The list continues with the expectation that users will have the ability to shop directly within these games. Walmart is also developing VR shopping through its platform, enabling customers to browse the store and add items to their cart from home using VR technology, with the purchased items being delivered to their doorstep. The main objective in the virtual realm is to establish a distinctive business or attraction on the land, ultimately aiming to generate income from monetizing the virtual space.
Exploring the Myth of Unlimited Virtual Land
Real raw land is a finite resource, leading to an increase in value over time due to limited supply as homes are constructed and available land diminishes. Conversely, virtual land can be generated by developers out of thin air. However, games restrict the amount of virtual land available, causing a similar supply constraint. For instance, SandBox has just over 166k plots of land, a relatively low supply considering the global population of 7 billion. The success of virtual land value is heavily reliant on the game's popularity. Early believers in the SandBox project acquired land for as little as $40, with prices now ranging from $10k to $15k for small plots and reaching as high as $4.3 million for larger sales. Notably, large corporations and Real Estate Investment Trusts are amassing virtual land for long-term investment. Some investor groups have established a DAO fund, enabling collective monetization of lands for shared passive income.
Virtual land games attract players through a "play to earn" model, allowing participants to complete quests, interact with friends, win prizes, earn in-game currency, trade avatars or items, attend events, and more. The unique aspect is the ability to convert these virtual assets into real cash, creating an earning incentive. For example, SandBox employs $SAND as its in-game currency, currently valued at around $2.80 per token. Players can trade $SAND for other cryptocurrencies like Ether, which can then be exchanged for fiat currency and deposited into their bank accounts. This liquidity facilitates trading between real money and in-game currencies.
Virtual land serves as an investment opportunity for individuals knowledgeable about web3, blockchain, and gaming. While speculative, the gaming industry is embracing blockchain technology, enabling diverse developments on virtual plots. Companies are exploring various monetization avenues with virtual land, leveraging exposure and advertising opportunities to engage younger audiences. Owners can earn passive income by attracting players to their lands through activities like puzzles, games, concerts, and more. In-game currencies hold value in blockchain "play to earn" games, as they can be converted into popular cryptocurrencies like Bitcoin and Ether, offering potential returns through staking and interest accumulation.
Engaging in virtual land requires a deep understanding of cryptocurrencies and trading. Given the risks associated with the emerging field of virtual land investment, thorough research is recommended before diving into crypto ventures. Familiarity with NFTs is essential before venturing into virtual land investments, as the space is still evolving and susceptible to scams. Caution is advised to navigate the crypto and NFT landscape successfully.
Top MetaVerse Games During the hype:
SandBox
Decentraland
NFT Worlds
Big Time
Worldwide Webb Land
TreeVerse Plots
While virtual land may not appeal to all traditional real estate investors, its potential remains intriguing. The future trajectory of the MetaVerse, whether a passing trend or the next big phenomenon, is uncertain and only time will reveal its true impact.
