How did Metaverse Real Estate conquer investors?

Liu Cixin, the author of "The Three-Body Problem", once said bluntly: "There are two roads in front of human beings: one goes outward, leading to the sea of stars; the other goes inward, leading to virtual reality." Tesla CEO Musk is actively exploring the sea of stars, Facebook (Meta) CEO Mark Zuckerberg is on the road to virtual reality.

The metaverse craze triggered by Facebook’s name change has also stimulated the crypto market’s interest in crypto metaverse protocols. The native tokens of protocols such as The Sandbox and Decentraland have seen considerable gains within a few days after Facebook announced the name change. It is worth mentioning that The Sandbox and Decentraland have a common feature - real estate is the basis of the virtual world built by the agreement. Only by purchasing real estate, users can create and build in it and maximize its value.

Next, we will discuss with you the value and development potential of Metaverse real estate in the virtual world.

The underlying logic of metaverse real estate value

The concept of a metaverse estate is easy to understand because it has examples in the real world. Since entering the farming era, real estate has become the most important means of production in human society, and all basic human activities need to be based on real estate. And the same goes for the Metaverse.

The metaverse world as we understand it is a virtual world. Using RobloxCEO Dave Baszucki’s definition of the metaverse, the metaverse includes at least the following elements: identity, friends, immersion, low latency, diversity, anywhere, economic system and civilization .

Just like, in Cointelegraph Chinese Focus on November 16, Enjin co-founder and CTO Witek Radomski mentioned that "we have the responsibility to try to build a metaverse in a decentralized and fair way." The metaverse should be orderly, not a "user is the creator" or controlled by a "centralized entity". The metaverse is not a virtual world that can act arbitrarily.

We must follow the "rules of the game" of the current metaverse when we live, socialize, play and create in it. The Metaverse real estate is the "carrier of the rules". Among them, Metaverse Real Estate gives users the right to "interact". Users can follow the corresponding rules of the Metaverse to complete value creation in it.

Until now, though, the Metaverse was an immature concept that was still developing and evolving. Through Metaverse Real Estate, users can enrich the concept of Metaverse with their own proprietary understanding and behavior.

Both capital and powerful individual buyers have started to purchase real estate under different metaverse agreements.

Not long ago, the Japanese cross-chain NFT market PolkaFantasy ended the second round of Land Sale on October 29, and within a short period of time, the lands of rare levels S and SS were sold out. Afterwards, on November 2, the Aave ecological NFT platform Aavegotchi metaverse game Gotchiverse completed the first round of land auction, with a bidding amount of about 40.6 million GHST (worth about 100 million US dollars).

The land in the Sandbox also frequently fetches high prices. On July 4th, The Sandbox's official Twitter stated that NFT investor @seedphrase bought a 24*24 virtual land on it at a price of 3,644,834.6103 SAND tokens (approximately $874,000). Previously, the highest transaction price of virtual land on The Sandbox was US$650,000, and the purchaser was Wang Chun, the co-founder of Yuchi. It is said that this land will be used to build the headquarters of Dogecoin enthusiasts.

How to define the "value" of metaverse real estate?

The reason why these yuan universe real estate can be auctioned at a high price is related to its attributes and scarcity as a means of production. But this value is abstract, in other words, this value is "future value", and its real value cannot be measured in the short term.

So, what are the aspects of "future value"?

Narrative and emotional value of the Metaverse

The narrative logic of the metaverse determines its value basis, and the emotions of people who yearn for the metaverse determine its value increment. The metaverse is considered to be one of the ultimate goals of human development, or the stars and the sea, or the virtual world, and its narrative value is thus revealed. Different positions have different cash flow choices, and the end points that lead us to will also be different. And we are coerced into it, and vote for the future we expect with our actions again and again. As technology advances, the future we want will come. The metaverse real estate is the most important means of production and cornerstone, which also determines its position in the narrative logic of the entire metaverse.

The Development Potential of the Metaverse

The greatest value of Metaverse real estate comes from the future development potential of Metaverse itself. Whether it is Facebook, Microsoft, NVIDIA, Byte Toutiao and other traditional giants, they have shown their concern for the Metaverse to the outside world. At the same time, many people are yearning for the "Ready Player One" virtual world, hoping that they can experience the beautiful virtual world immersively, control the avatar and enjoy the efficient social network in it. It can be considered that people's good vision for life in the metaverse has contributed to the rapid rise in the valuation of the metaverse. The intervention of capital has catalyzed the emergence of value bubbles in the metaverse, and these bubbles will in turn arouse more people's enthusiasm for the metaverse.

The "Hype" and "Future" of Metaverse Real Estate

However, we must also be wary of the hype boom of Metaverse Properties.

As we all know, the Metaverse is just a very interesting and novel concept. However, many people only mention its origin in the novel "Avalanche" and the movie "Ready Player One" when introducing the metaverse, and it is difficult to derive some new large and general concepts. Sean Yu, the co-founder of MGA, mentioned in the sharing of the CT Chinese Shanghai event "Meeting the Metaverse NFT World New Wave" that the Metaverse currently has huge controversies and we cannot give an answer in a short time.

Also, if we rush to develop the metaverse, we will often get twice the result with half the effort due to the lack of infrastructure. Just like the plot in "The Three-Body Problem", after knowing that the Three-Body Man was coming, human beings rushed to develop the aerospace industry, which resulted in the Great Depression. After giving up development, a brilliant civilization developed in a short period of time. Whether the metaverse will follow such a development path, we do not know, but it is worth thinking about and applying it in investment strategies.

In addition to the lack of infrastructure, another problem in the development of the metaverse is also worthy of our attention. Another problem arises when protocols with the concept of metaverses are launched one by one. Just as developers have launched various public chains, although they have directly promoted the prosperity of the public chain market, they have also created islands of data. The emergence of metaverses will gradually become ecological islands. As the number of metaverses increases, the scarcity of metaverse real estate will disappear, and the investment value will drop sharply.

For the metaverse, interoperability is more important-people expect a unified metaverse, in which Facebook, Microsoft, NVIDIA and byte headlines are all members of the metaverse, not four A metaverse entity. Different from the development path of the public chain "everything in life", different metaverses will eventually be unified, and every member of human beings can participate in it. Among them, Yuanverse real estate, as the most important means of production, will exert its greatest value.