Virtual Reality, Mixed Reality, Augmented Reality, and other similar technologies have been in existence for a long time. But they did not take off as fast as companies marketing them would have wanted. Decentraland and other crypto ecosystem companies want to change that. They have created a virtual world with 3D animated avatars and graphics called metaverse. Although many people thought of this as an interactive video game when it was launched, it has evolved to become much more than that.
Just last week, Decentraland, a metaverse built on the Ethereum blockchain, closed a $1.2 million LAND deal with Portion, an NFT auction house and marketplace. Price Waterhouse Cooper (PWC) Hong Kong also purchased a LAND in Sandbox for $10,000. Last month, JP Morgan Bank also purchased a lounge in Decentraland to offer users a more virtual interactive experience. As per various media sources, consumer electronics giant Samsung too purchased a LAND in Decentraland and named it Samsung 837X after its flagship store in 837, New York, USA.
Like these, thousands of people and corporations have spent millions buying virtual LAND in metaverse worlds like Decentraland, Sandbox, Somnium, and others. While some of them purchased these LANDS as an investment, others view these purchases as the next level of digital marketing. They are using the metaverse world to spread their brand awareness and to make information about their product or service more accessible to new-age clients. For example- JP Morgan bank has opened its lounge in Decentraland to make it easier for its customers to know more about its crypto and blockchain service, Onyx. PWC Hong Kong purchased their LAND in Sandbox to gain expertise about the technology so that they can advise their global clients in a better way about this new trend.
“The Metaverse offers new possibilities for organizations to create value through innovative business models, as well as introducing new ways to engage with their customers and communities. We will leverage our expertise to advise clients who wish to embrace the Metaverse on the full range of challenges presented by this emerging global digital phenomenon,” said a partner with PWC Hong Kong in a press release.
According to a report by CNBC, A normal house costs around $2,80,000 (exact figure $287,148 ), which is incidentally the same as buying a virtual land in metaverse in a posh locality. So the price of LAND in the metaverse world is almost the same or even more in some cases than buying real land. Investors globally are paying for something available digitally and which has no real asset tied to it. It is just a work of computer codes and animation, yet such big money is being spent on it.
Experts advise retail investors not to spend money buying LAND in the metaverse world. Rather, they should just go and enjoy the experience. Since companies are doing it for marketing their products and services, they can afford to lose money if something goes wrong, but if a retail investor goes all in and invests in a virtual LAND, then the value of the LAND goes zero will lose their total savings.