We’ve seen words like “augmented reality,” “metaverse” and “virtual real estate” floating around for some time. While it seems a bit bizarre someone would spend real money on a place you can’t actually live, it’s happening. Welcome to the 2020s. In the latest news, an investment tech company purchased a piece of virtual land for $2.4 million dollars. As in actual money. If you’re scratching your head about why, read on.
A Canadian investment firm recently announced their latest acquisition of property. For a cool $2.4 million, the company purchased 116 parcels of virtual land. So, fake land. In a press release by Tokens.com, the firm said the following:
“Tokens.com Corp., a publicly traded company that invests in revenue-generating crypto assets linked to Decentralized Finance, Non-Fungible Tokens and metaverse real estate is proud to announce the acquisition of a 116 parcel estate in the heart of the Fashion Street district within Decentraland via its subsidiary, Metaverse Group. Decentraland has declared this to be the largest metaverse land acquisition to date,” it reads, via BroBible.
Navigating Virtual Lands
Further, they went on to add what they plan to do with the space:
“The estate will be developed to facilitate fashion shows and commerce within the exploding digital fashion industry,” the statement continues. “Metaverse Group also plans to establish partnerships with several existing fashion brands who are looking to connect with new audiences and expand their ecommerce offerings within the metaverse. Metaverse Group will collaborate with Decentraland to curate fashion projects and events on the estate.”
If this seems a bit difficult to understand, that’s because it is. Virtual properties are a new territory. And it seems that because people are willing to drop hundreds of thousands – and even millions – it’s now a legitimate business.
So what are the benefits of investing in “fake” land? Just like with real properties, you can rent it out, let people advertise or earn profit by selling it. Additionally, with many people investing in cryptocurrencies, the virtual spaces are becoming hot commodities. However, be careful if this is something you’re thinking about. The huge money associated in the virtual world can easily become a token for people to be scammed. Do your research about the world before jumping on the trend.
Tokens.com, however, believes their investment will pave the way for a new line of business.
“Fashion is the next massive area for growth in the metaverse,” Sam Hamilton, Head of Content at the Decentraland Foundation says. “So it’s timely, and very exciting, that Metaverse Group has made such a decisive commitment with this land purchase in the heart of Decentraland’s fashion precinct.”