Blockee: Virtual Real Estate, NFT Marketplace & Land Values
You do not need to travel out to other states to do property research. Thanks to real estate investment tools and real estate investor websites, anyone from anywhere can make profitable investment decisions. Investing in virtual real estate is in its early stages and may hold the potential for gains down the road. But the success of the metaverse is hardly a given and investments in digital assets should be viewed with skepticism.
You have a couple of options when it comes to buying land in the metaverse. You can choose to buy your property directly on a specific metaverse platform, or you can go through one of many popular third-party platforms that offer buying and selling opportunities. Buying and selling virtual real estate is fairly straightforward once you’ve decided you’d like to make a purchase. You can research the different platforms from your computer and see which areas you’re interested in. You might be able to find sales history and other useful metrics on sites such as NonFungible.com or WeMeta. Individual investors and some companies have been attracted to virtual real estate investments because of the potential it holds over the long term.
Because of high demand, these waves often sell out in seconds, said Ryan Baue, cofounder of MetaMetric Solutions. Either way, once you have your parcel selected, your wallet funded, and you’ve settled on a price, clicking the buy button literally wraps up the rest. Blockchain funding takes just a minute, and the transaction is recorded using an anonymous identifier for your wallet, indicating that you now hold the NFT title to the property.
We do not include the universe of companies or financial offers that may be available to you. We are an independent, advertising-supported comparison service. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Click on a plot of land that has a price and location to your liking. You’ll land on a page that shows you a map of Decentraland (all the plots that are on sale are highlighted in light blue). After clicking Buy, OpenSea (an NFT marketplace) will launch, taking you to the property listing.
Once you’ve chosen a piece of virtual real estate, you can research it on one of many third-party reseller platforms, like OpenSea.io or NonFungible.com. These sites can show you sales history, if any exists, https://www.crypto-trading.info/ and allow you to do the same for nearby properties that might serve as decent comparables. Secondly, each parcel of metaverse real estate is wholly unique, secured by a non-fungible token (NFT).
- Even if this concept sounds too unfathomable, I’m sure you’re curious about the process.
- Much, if not all, of that real estate has been “real.” Today’s real estate investor, however, may also be considering something a little less touchable — virtual land.
- If you can’t afford to lose your entire investment, virtual real estate is likely not the best option for you.
- Sales and ownership of metaverse land is recorded via transfer of NFTs, so the second thing you will need is a wallet capable of storing these.
- Sandbox’s weekly average sale price peaked at more than $35,000 in January 2022, but was just $3,990 in early August.
- New investors might consider investing in more traditional assets such as stocks or bonds.
• Also in 2021, an investor purchased a virtual plot next to rapper Snoop Dogg’s digital mansion in Sandbox for $450,000. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site.
Link your funded Metamask wallet to the site by clicking on the wallet icon (Don’t have one? Here’s how to set up a Metamask wallet). Did you know that Snoop Dogg and Steve Aoki own land in Sandbox? A plot of land situated between these two celebrities is currently on sale for a cool $2.5 million. A hardware wallet is a physical USB drive that you can use to protect your land from phishing attempts by adding two-step verification for whenever funds or NFTs are transferred out of your wallet. You can also use the drive to access the land to sell it securely from any computer in the world with an extra layer of protection. • Sandbox’s weekly average sale price peaked at more than $35,000 in January 2022, but was just $3,990 in early August 2022.
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The main advantage of using a third-party marketplace is all that previously mentioned data. When you can see the entire transaction history for a property, as well as those of its neighbors, it can help you decide whether the property is worth what the seller is asking. Remember, though, that no two plots of virtual real estate are the same, so the prices will always, necessarily, be somewhat different. Although metaverse properties are all the rage, they’re highly speculative assets.
Your profitability will likely depend on the sentiment of other investors towards the metaverse and owning virtual land. Once you’re ready to make a purchase, you’ll need to set up a digital wallet to hold your assets such as https://www.cryptonews.wiki/ a cryptocurrency or NFT. Be sure that your wallet is compatible with the metaverse platform where you’re making your purchase. Every metaverse platform with real estate for sale has a marketplace where you can go to buy it.
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For example, if you’re buying in Decentraland, you’ll need to purchase MANA coins. If you’re buying in The Sandbox, you’ll want to stock up on SAND. These can all be purchased on open cryptocurrency exchanges using your local currency or other cryptocurrencies. Before you decide to invest in digital real estate on any platform, you need to understand what a digital plot is.
An NFT is basically a deed or proof of ownership for something digital (or real) that is able to be identified in a wholly unique way. Your virtual real estate NFT guarantees your ownership and allows you to resell the property to another owner. It also records all the transactions for that property automatically, eliminating the need for title work.
If you’re considering investing in digital land, you should be prepared to lose your entire investment. You’ll need to open a digital wallet that can hold your digital assets, including the cryptocurrency you’ll be using to make your purchase. The wallet you choose will depend on the metaverse platform you’re using. Each site will explain which are preferred and how to link them. It’s not difficult to buy and sell digital assets in the metaverse.
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Chad Diefenderfer, a cofounder of MetaMetric Solutions, said it’s important to look for verified sellers of land if you’re buying on a secondary marketplace. Verified land in the Sandbox and Decentraland will have a blue checkmark by the offering on OpenSea, and it’s the safest option for buying real estate. One wallet commonly used to buy land is called MetaMask, and it’s https://www.bitcoin-mining.biz/ accepted by the Sandbox, Decentraland, and OpenSea. To set up a MetaMask wallet, you will need to download the app on your phone or via the Google Chrome browser extension. After you download MetaMask (or another kind of crypto wallet), you will be asked to create a password and will likely be given a secret phrase which you’ll use to verify your identity later on.
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The truth is that they’re very similar to real-world real estate in many ways. Metaverse real estate (or should that be virtual estate?) is already big business. Superstars, including Snoop Dog and global businesses including PwC, JP Morgan, HSBC, and Samsung, have already snapped up plots of virtual land, which they intend to develop for a variety of purposes. Those who got in early have already made big returns – on paper, at least. Less than a year ago, the average price for the smallest plot of land available to buy on Decentraland or the Sandbox – two of the biggest metaverse platforms – was under $1,000.
Right now, there are no tried-and-true formulas for appraising virtual real estate, though some large commercial ventures are trying to figure it out. The thing that’s important to keep in mind with metaverse real estate is that it’s extremely new, extremely experimental, and extremely volatile. Just a few months ago, you could buy lots in almost any metaverse for a few hundred dollars, but today, you’ll need a few thousand, minimum, just to get in the door. If you’ve bought physical real estate before, you know this next bit can be a real nightmare in the real world.
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On most platforms, plots of “land” are represented by X and Y coordinates on a map that makes up the entirety of a metaverse world. Each plot is turned into an NFT, which is sold either directly by the platform to a consumer, or by a secondary marketplace, the most popular of which is OpenSea. Once you buy a plot through an NFT, your sale is recorded on the blockchain of the given platform, and you become the sole owner of that piece of land within the metaverse. Your digital wallet will be hosted outside of your metaverse and must be connected to your metaverse account before you can get started on building your virtual real estate empire. Some platforms may specify the wallet you have to use; others may be more flexible.