Investment in Metaverset: NFT Eiendom

TLDR Summary: Non-fungible tokens, or NFTs, are a popular technology sector for blockchain investors. In the same way, there has been enormous interest in the creation of Metaverse. This blog will discuss the combination of the two – Metaverse NFT real estate – and how you can buy, sell and trade these digital properties.

Sales of real estate in Metaverse peaked at $ 500 million in 2021, setting a new record and estimated to increase further, according to figures released by real estate agent Raymond S. Beckford.

“It’s not just the basic 9-to-5 amount that buys into the Metaverse real estate market either,” Beckford said. “We are talking about people also investing their free time. One of our agents recently concluded a sale with a guy who makes a living playing golf in the metaverse full time. ”

Real estate is about location, location, location – not emotions. This is accepted as true for the physical world, and a similar principle applies to virtual property: think about the long-term value of the “location” (ie the platform, the scarcity and the neighborhood) before investing. (See below for more tips on Investment in Metaverse.)

What is Metaverse NFT Real Estate?

NFTs are digital assets that cannot be replicated.

Metaverse NFTs represent digital property ownership in a virtual world. (Think of them as deeds of virtual land.)

The Metaverse is (or will be) an immersive virtual reality network where users interact with each other and experience their custom environments. According to Matthew Ball in his excellent book The Metaverse, blockchain technology will be important in managing payment and ownership in Metaverse.

NFTs, like a plot, are unique and cannot be replicated. In addition, since they are programmable software, they can perform complex functions such as transferring ownership or receiving payments automatically when specified conditions are met.

Comparing digital land ownership with physical land highlights several differences:

• There are no real estate agents involved in buying and selling Metaverse NFTs.
• No commissions are involved with Metaverse NFTs (although there are transaction fees to consider).
• No mortgage companies, real estate services or other expensive third parties are involved in transactions.
• Transactions are performed with cryptocurrencies.

This means that buyers and sellers can use their digital wallets to send and receive payments, using cryptocurrency. In addition, this gives people who do not have access to traditional banking services access to digital real estate.

Furthermore, each NFT can be used to track the ownership and origin of an asset. This ensures authenticity and uniqueness, since no one can replicate the token.

A real estate NFT is a virtual deed that guarantees the uniqueness of your virtual plot.

This unique feature potentially makes NFT tokens extremely valuable – just like any unique object in the physical world. An NFT is like a virtual act of ownership, guaranteeing the uniqueness of any asset (and yes – you can use this type of token instead of traditional legal paperwork).

The leading Metaverse projects

There are many exciting projects working on building Metaverse, but we will discuss the four most popular: Decentraland, The Sandbox, Somnium Space and Voxels.

Decentraland

Ticker: MANA
Market value: $ 1.54 billion
Total number of items: 97 600
Floor price: 2.65 ETH
Volume: 228 600 ETH

Decentraland is an immersive VR platform powered by the Ethereum blockchain where everyone can create, experience and monetize content and applications. Users can create, experience and monetize content and applications by buying land or renting plots in a vast virtual world. It’s like Second Life meets Minecraft meets Ready Player One (with the added benefits of being decentralized).

The company has raised $ 25.5 million in financing over four rounds. Their last round was a Secondary Market round held on November 18, 2021. It included Broslyn Capital and Digital Currency Group as investors. (Browse Decentraland properties on OpenSea.)

Sandboxes

Ticker: SANDY
Market value: $ 1.08 billion
Total number of items: 142,100
Floor price: 1.90 ETH
Volume: 159 700 ETH
Sandbox is a toolkit for creating social VR experiences. It enables developers to build multiplayer games with cross-platform support for Oculus Rift and HTC Vive headsets and desktops via SteamVR. It also lets users create their own social VR experiences with tools like the Unity 3D game engine.

In addition, the project has raised $ 95 million in funding over four rounds, with the most recent round obtained on December 9, 2021. Some of the best investors include Adrian Cheng, Softbank and Blue Pool Capital. (Browse Sandbox properties on OpenSea.)

Somnium Space

Ticker: CUBE
Market value: $ 19.3 million
Total number of items: 5800
Floor price: 0.50 ETH
Volume: 27,000 ETH
Somnium Space is another open-world metaverse that focuses on socializing and building your avatar. You can dress up as you like and interact with others through chat rooms and group activities while exploring an expansive universe full of planets, asteroids, starships and more.

Somnium Space is a rocket ship for your dreams.

The startup has raised $ 1 million in funding so far, and the final round of fundraising will take place on May 8, 2019. (Browse Somnium Space properties on OpenSea.)

Voxels (formerly Cryptovoxels)

Ticker: NOW
Market value: NOW
Total number of items: 7,900
Floor price: 0.90 ETH
Volume: 25 100 ETH
If you love Minecraft, but want something more immersive than just playing with blocks in 2D rooms, Voxels may be on its way. This meta-verse brings all of Minecraft’s creativity into an interactive environment that allows users to create their worlds using 3D models or import existing ones from popular online repositories such as Sketchfab or MyMiniFactory.

The platform is regularly ranked just behind Decentraland and The Sandbox in terms of popularity and user base. According to MetaCat, Voxels ranks fifth ($ 38MM) in total packages sold. (Browse Voxel’s features on OpenSea.)

Investment in Metaverse

First, Look for real estate NFTs with good reason to increase in value. Look for NFTs with unique stories or purposes, not just copies of other NFTs. Originality counts, and so does being “first in the market” with a successful formula or approach.

Second, find out when the NFTs were first released – and by whom. Suppose a company like Disney released an NFT for real estate in a virtual Disneyland. Due to the enduring power of the Disney brand, it is likely to be a good long-term effort.

Third, check if NFT has a high perceived value. Is it rare? Is it difficult to get hold of? Do people want it? Think of NFTs as collectibles (see our guide to investing in NFTs for more).

Fourth, look for NFTs in platforms with a solid ecosystem. Decentraland is one such platform: the crowdfunded event sold out in less than two minutes. The project raised $ 25 million in MANA tokens during the sale, and continues to grow. And it’s not just for fun: Major brands such as Coca-Cola, Samsung, Nike and Atari are using the Decentraland platform to expand their presence in Metaverse.

Finally, when investing in Metaverse, watch out for volatility. NFTs are non-fungible tokens – so they are not exchangeable as stocks or bonds. They are also not representative of real world assets like gold or oil, so you can not just buy them and sell them for cash at any time. This means that it may take some time for an NFT to sell. These are not very liquid assets.

Conclusion

Investing in Metaverse is risky, but it offers the potential for high rewards. Our philosophy is to let NFT make up no more than 1% of your total investment portfolio, and be ready to hold on to the long term (5+ years).

It’s easy to let trends and popularity influence your decisions, but thinking carefully about what you are actually buying – like all collectibles – will help you make a better NFT investment in real estate.

For more crypto investment tips, subscribe to our daily Bitcoin Market Journal newsletter.