Metaverse property refers to virtual "land" represented as an NFT. Users can purchase metaverse land which can have different uses depending on the platform.
*Compared to major competitors. Terms and conditions apply. This is not investment advice or an investment recommendation. NFTs are shown for illustrative purposes and the types of NFTs available may vary. Cryptocurrencies, including NFTs, are highly volatile, subject to significant price risk, and may not be suitable for you.
Back in 1991, game designer Will Wright lost his home during an Oakland firestorm and decided to build the premise of his real-life experience into a computer game. After pitching the idea to gaming companies, directors at the U.S. video game company Electronic Arts realized the opportunity and launched Wright’s SimCity, an open-ended city-building video game that later became a great success. The end result of Wright’s idea was the next video game dubbed The Sims, which featured a diametric calculation and open-ended digitalization of the daily actions of simulated persons ("Sims") in a suburban area near SimCity.
After SimCity’s success came games like Second Life or Facebook’s FarmVillewhere players could build up their status and reputation and become respectable members of their virtual communities.
But instead of playing on mobile phones or personal computers, these same gaming ideas are being formed in the Metaverse, a new reality whose growth has seen digital lands and development take on an entirely new meaning and value.
The Metaverse represents the idea of an online three-dimensional (3D) space that interfaces with numerous virtual realities controlled by someone in the physical world. The entire concept is still in its infancy stage, but certain companies such as The Sandbox and Decentraland are already selling pieces of virtual metaverse land as non-fungible tokens (NFTs) for staggeringly high prices.
Put simply, Metaverse land is digital parcels of property in the virtual world that imitate the real world.
Buying land in the metaverse may seem like an odd or even irrational investment since the assets are not tangible. Investors cannot actually relax on a digital island villa, for example. But there are good certain reasons why metaverse land is popular and why skeptics should give a second thought to this growing virtual industry.
Just like physical real estate, virtual property is in limited supply. The amount of metaverse property available for purchase is not endless. Furthermore, each plot of metaverse land is exclusive and secured by a non-fungible token (NFT), meaning owners can safely, quickly, and securely sell (or buy) their virtual real estate in ways that physical real estate markets cannot offer.
For readers interested in buying virtual land, the next section provides an overview of a few marketplaces that offer buying and selling for NFT-based property.
Two of the most popular choices are The Sandbox and Decentraland, but there are numerous options, all with different features and functionalities. New Metaverse investors should start with some basic research on location, price, and options for metaverse land and where to buy or sell it.
The following sections use Sandbox as an example, and briefly explain how to buy Metaverse land on the platform.
In order to connect your wallet to the Sandbox marketplace, you need to log in or create a new account on the Sandbox website. When linking your wallet, no funds are necessary to begin.
In order to buy a metaverse land in The Sandbox, prospective buyers will need SAND tokens, an ERC-20 token built on the Ethereum network.
To buy land, users have to play some online games where LAND already is a mainstream payment feature. One of the best examples is The Sandbox Metaverse.
It is also possible to buy LAND via official LAND sales whose dates are revealed a few weeks in advance so the player has the chance to prepare. Prospective Metaverse investors can also buy LAND from another owner on some NFT exchanges.
After finding LAND to purchase, Sandbox users can place bids, and if they’re accepted by a seller, the cost will be withdrawn from the buyer’s wallet as the token representing the property purchase arrives in the same wallet.
Selling property in the Metaverse can be done in two ways: selling through the Metaverse project’s marketplace or selling through an intermediary market or a second party.
Sandbox users can only sell their metaverse land through third-party marketplaces. But The Sandbox claims that owners will soon be eligible to sell their property directly through the platform for a fee of 5%.
On other platforms, selling is possible by creating an auction for the digital land on various NFT exchanges. Sellers can just sign in or register on the platform, select the NFT they want to sell, and simply click the sell button.
Investors who aren’t eager to sell their property could still earn profits by renting their Metaverse real estate. Renting is fairly easy to do in platforms like The Sandbox and Decentraland, but the process does carry certain risks of wrongly reallocating control over an NFT to the renter.
Potential uses for the Metaverse and its property are endless. Popular culture is already converging on an increasingly digital existence instead of an exclusively physical one. And as work, social, and other spheres of life continue transitioning to a remote and virtual world, the possible growth opportunities for the Metaverse continue to increase.
Big fashion brands such as Gucci, and Hermes already have established their virtual stores along with the virtual merchandise. And for any Metaverse users who aren’t interested in buying a digital Birkin bag, they can attend Snoop Dog’s private party at his virtual property or just go to a concert.
Moving away from the entertainment and fashion industry, owning a piece of the Metaverse industry has also become a new priority for big companies such as Apple and Microsoft who already established their virtual offices in order to explore new business opportunities with other players.
Seen as an initiator within the crypto sector where it acts as a fast-rising, decentralized exchange for many types of tokens and NFTs, FTX offers an efficient and timely trading platform with access to NFTs with low fees.
FTX can help all interested entities to invest in the metaverse in multiple ways. From purchasing NFTs to getting started in crypto, there are various ways to get involved. Platforms such as Decentraland and The Sandbox offer a limited number of virtual lands users can trade, but Metaverse investors can also buy metaverse game NFTs on FTX’s platform.