Virtual real estate on metaverse has risen enormously over the past time. There are still a lot of businesses and investors who want to own this particular type of property to be able to bring huge revenue.
The price of expectation
Hyundai, Gucci, Nike, Walt Disney…, and a series of giants leading the fields have put their names on the metaverse battlefield, pushing the price of real estate in the virtual world constantly increasing when businesses do not want to be left behind.
In 2021, $501 million was poured into virtual properties on four metaverse platforms, Sandbox, Decentraland, Cryptovoxels, and Somnium (according to MetaMetric Solution). Virtual land sales are forecast to reach $1 billion this year as prices have risen 400-500% in the past few months alone.
Peak last month, a virtual plot of land on TCG World was purchased by investment research and analysis firm Curzio Research for $5 million, surpassing the $4.3 million virtual plot record that Republic Realm had previously purchased.
As expectations of the virtual real estate market are projected to double 31% between now and 2028, according to BrandEssence, despite the price risks, billions of dollars continue to pour into this category.
According to Tony Ngo, Founder of One-bit Ventures, Director of the Young Entrepreneurship Incubator, this is an opportunity for businesses to take the lead in technology. Like the reform of Industry 3.0 (Social media, Mobile, Cloud ..), which has created significant positions through the race of Industry 3.0 (Google, Microsoft, Facebook, Apple…)
“So big businesses always have investment capital for opportunities because no one wants to miss opportunities, especially the “big guys”. And metaverse is a great opportunity, a blue ocean that businesses and big corporations don’t want to miss. I am still waiting, looking forward to the breakthrough from metaverse in the future,” Mr. Dong stressed.
The possibility of “evaporation” of assets is possible
But there is a concern that, if metaverse platforms are problematic, are owners likely to lose their whites?
Analyzing the issue, Tony Ngo said metaverse is currently a trend in the crypto market and applied to reality. However, metaverse now has a lot of problems with devices, users… Specifically, the price of metaverse devices such as VR glasses is relatively high and not suitable for most users… So metaverse is the future trend for the next five years until the price of the more appropriate device or a newer technology based on the metaverse platform is born.
Regarding ownership, NFT is the data unit on the blockchain digital ledger. Understandably, it is a type of digital asset on blockchain technology. However, this digital asset is in the experimental phase, and anything in the testing phase is risky. So NFT owners can completely lose their digital assets.
“Investing in new technologies is always risky, so in the new investment world, the field of venture capital and investment in fintech is investing in risk and venture capital. When you want to benefit your investment, even super profit, you have to face the harsh truth that you can completely lose that investment,” Mr. Dong said.
Agree with the view that if the metaverse platform is not developed and closed, the investor will lose the virtual land. Still, Dr. Trinh Cong Duy, Founder of Bizverse World, Head of the Research Lab specializing in Metaverse and MetLab Digital Transformation (Da Nang University), also thinks that in the opposite case, if the project is well developed, businesses can build virtual works, digital works on that land for business, then the land has a significant effect. That’s why the land is worth millions of dollars for bringing value to the company.
Faced with the question of whether metaverse developers are acting to adjust the prices of virtual land plots, Dr. Trinh Cong Duy said that ultimately economic relations in metaverse still have to follow the market mechanism.
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