Virtual Real Estate — A Guide
Metaverse, a concept that took the world by storm. We cannot be sure of the disruption it is going to cause, but we can be sure of one thing, that it is going to make everything prior to it look extremely primitive.
During the last few months, many projects revolving around this concept have emerged. One of them being the idea of “virtual land/estate”. Even though many people are skeptical about the metaverse, big brand names have already started buying virtual lands.
“The Sandbox” has been classified as one of the best decentralized metaverse as of now.
Steps to buy a land in “The Sandbox”
If you are interested in buying virtual land on “The Sandbox”, you have mainly the option of using OpenSea or any other markets. To receive said piece of virtual land, follow the below steps:
- A crypto wallet is needed for buying a virtual land on OpenSea. Most commonly used crypto wallet is Metamask.
2. Go to OpenSea and click on Profile. Connect your desired wallet.
3. Add desired amount of ETH along with some extra ETH for gas fees in your wallet.
4. Search for “The Sandbox” in the search bar.
5. Select your desired piece of land according to your strategy and budget
6. Accept the above transaction on Metamask.
Evaluating Virtual Real Estate
These are some of the points to be considered while evaluating virtual land:
- Location plays a key role in the price of your piece of virtual land. The more populated the area is, the higher the price of the land will be driven. Virtual lands alongside celebrities or brands also have higher chance of soaring prices in the future.
- It is important to analyze the team behind the project and if they have the experience to back their claims. The competition in the metaverse is getting cutthroat. One needs to constantly track the progress of the team to know if they are really sticking to their deadlines.
- It is better to invest in projects that are popular to be on the safer side. The smaller scale projects can close down due to insufficient funds and therefore the popularity of a project plays a major role in the evaluation of virtual real estate.
- The concept of the project can lead to the success or the failure of a project. The utility, the usage and the genre of the project can be an influencing factor for an investor to decide upon and it heavily depends upon personal preference.
- If a metaverse project has partnerships with other big companies in the same domain, the chances of the project being successful increases exponentially. The other companies will drive the hype for the project and the price would increase.
Risks in Virtual Land as an Investment
Risks that need to be taken into account before investing in virtual real estate:
- The value of the land in “The Sandbox” is directly pegged to their token. The price of the asset is directly dependent on the crypto market and therefore is highly volatile and therefore can be a major risk factor in virtual lands.
- The virtual land can be stolen if you do not take preventive security measures. Security issues are of the highest concern and the first layer in the exploitability of an asset as it involves, to some extent, human control.
- The team could create a lot of fake hype over hollow projects with no usability to get investments. The price would be driven high and then they would run away with the money and because of no central governing authority, there would be no accountability.
Earning Opportunities for Virtual Land as an Investment
- You can rent out your virtual land to earn some passive income. The amount will depend on many factors such as scarcity, proximity to bigger estates or famous places, and price increase due to hype.
- There is also the option of holding on to your piece of virtual land until is value appreciates over time and then flip it for more money and then continue this cycle.
- One can start their own business in the metaverse and earn through it. You can also promote your real life business and increase the sales. Major part of metaverse is currently being used as casinos and owning shares in those can make you good profit.
Upcoming Metaverses for Virtual Land Opportunities
There are a lot of new projects in the metaverse that have a lot of potential and are ever-growing. Some of the most popular ones are:
Decentraland is a decentralized virtual reality platform powered by the Ethereum blockchain. Within the Decentraland platform, users can create, experience, and monetize their content and applications.
- Earth 2®
Earth 2® is the beginning of our world’s future virtual existence and today you have a chance to own part of this incredible future.
The vision of Earth 2® is to create a global digital representation of our earth, a place where people can build, abide, trade, live, experience, interact and so much more. The vision is long term and monumental and we feel the introduction of Earth 2® represents the birth of the world’s virtual timeline.
- Somnium Space
Somnium Space is a Virtual Reality world on the Ethereum blockchain (or metaverse), where players can buy land, build or import NFTs, explore, and trade.
- Axie Infinity
Axie is a digital nation where people globally come together with their Axies to play, earn, and live.
We’re here to create an ecosystem of amazing Axie gaming experiences with community and player-owned economies as foundational pillars.
A key difference between Axie and a traditional game is that Blockchain economic design unlocks the ability to have complex player-owned economies and reward players who are able to reach advanced levels of skill. Players are able to have fun and work towards ambitious goals while simultaneously earning potential resources that will have real monetary value due to an open economic system and demand from other players — “Play-and-Earn”.
There are a ton of more upcoming projects in the Web3 space. Metaverse is a constantly evolving domain at this point and holds a lot of untapped potential.