A new record was set recently when a piece of real estate in the metaverse sold for $2.4 million. The sale, which was conducted in crypto, took place on Decentraland, a decentralized metaverse. While NFTs still have their skeptics, the latest sale shows that there is serious business to be conducted in the metaverse.
Decentraland is a virtual world where people can buy land, explore, create, and sell virtual assets while also interacting with others. Sales within Decentraland are secured using blockchain technology. Each sale is made possible via an NFT.
The purchase was made by Metaverse Group, a subsidiary of Tokens.com, a crypto investment firm. It took place in MANA, the native crypto coin of Decentraland. In total, 618,000 MANA was used for the sale, which is around $2,428,749. It is the biggest single purchase of a virtual piece of real estate in history.
The real estate is located on “Fashion Street ” within Dencentraland. According to Tokens.com, they plan to use their land to host digital fashion events as well as sell virtual apparel. Metaverse Group will also partner with existing fashion brands that wish to connect with new audiences and expand their offering within the metaverse.
They plan to work with Decetraland to curate virtual fashion events and projects within their real estate. Each parcel of land in Dencetraland is about 52.5 square feet in area. The recent purchase was for 6,090 square feet of virtual land.
Besides Decentraland, the Metaverse Group owns in excess of a 7 figure real estate portfolio in other leading worlds. The company, whose headquarters is in the Crypto Valley in Decentraland, intends to continue buying, developing, and renting out its portfolio of virtual real estate. It describes itself as a “vertically integrated NFT based metaverse real estate company.”
Growing Interest in Virtual Worlds
There has been renewed interest in the virtual world since Facebook announced that it had changed its name to Meta in late October. To date, the two popular virtual worlds are Decetraland and The Sandbox. Their native tokens are currently the 23rd and 34th biggest by market cap. In November, both virtual worlds experienced massive growth. MANA is up by around 39.8% in the past week alone while The Sandbox’s SAND has grown by 72.2% in the same period. Before the recent sale, another plot of land sold for 1,295,000 MANA, which was worth $913,228 at the time. The buyer built a virtual shopping center where they plan to sell digital apparel.
While NFTs have blown up in the past few months, platforms such as Decentraland have been around for a while. These projects are helping to demonstrate the utility of NFTs in the metaverse. With such huge purchases happening, it shows that NFTs may not simply be the fad many people thought they were.
Even large brands such as Nike are already planning to enter the virtual space with NFT apparel. It shows that the NFT space has real commercial potential even for large brands by helping to attract a mostly young audience to their products.