6,000 square foot estate in the Decentraland fashion district to be developed to host fashion shows
The booming digital real estate market is heating up.
A virtual “domain” in Decentraland, one of the two dominant metaverse, changed hands on November 23 for a record sum – the equivalent of $ 2.4 million at the time.
Tokens.com Corp., through its subsidiary Metaverse Group, paid 618,000 MANA – the native Decentraland cryptocurrency – for 116 packages representing some 6,090 square feet in the virtual world.
The estate, in the fashion district of Decentraland, is now worth much more, thanks to a 35% increase in the value of MANA overnight. Cryptocurrencies are notoriously volatile, but the market as a whole has been trending upward since the summer. MANA has risen in dollar value by over 65% over the past week and over 550% over the past month, according to crypto market Coinbase.
Decentraland, like other metavers, is still largely underdeveloped. But investor interest in the metaverse has grown in recent months as retail, gaming and media companies like Facebook have claimed virtual worlds. As the number of participants multiplied, value gathered around estates and other plots located near busy public plazas and emerging business ventures like casinos.
Speculators say digital real estate can serve a variety of purposes, from retail showrooms to event spaces and virtual offices.
Tokens.com, a publicly traded company that facilitates investment in digital assets, based in Toronto, plans to expand the Decentraland domain to host fashion shows with clothing brands, the company said in a statement. Luxury brands such as Louis Vuitton, Gucci and Burberry have already entered the metaverse thanks to designer NFTs, unique digital assets secured by blockchain technology.
In September, Tokens.com paid around $ 2 million for a 50% stake in a digital real estate portfolio owned by Metaverse Group, with the intention of turning it into the world’s first metaverse REIT.
Tokens.com is run by co-founder and CEO Andrew Kiguel, a former real estate investment banker.
Sandbox, another dominant gaming-oriented metaverse, is set to launch on November 29 after four years of development. SAND, the native currency of the virtual world, grew by more than 800% last month.