Tokens.com and Decentraland have revealed that a patch of virtual real estate that was available in the online world of the latter has been purchased for a record US$2.4 million worth of cryptocurrency.
Decentraland is an online environment – that has also been known to be called a “metaverse” – in which users who visit the site can purchase land, visit an array of different buildings, walk around the world and also meet other people as avatars. Indeed, whilst it would all sound extremely futuristic, it would appear that this is the way of the future.
These virtual environments have become extremely popular amongst users over the last couple of years, with 2021 having experienced a surge in growth. One reason that has been suggested as to why the popularity levels have improved is that people have had to spend more time online than ever before because of the pandemic and the restrictions that were imposed.
Additionally, there are other reasons why Decentraland has been able to experience booms, with interest having surged last month due to Facebook’s decision to change its name to Meta as they wanted to reflect the company’s focus on developing virtual reality products for the metaverse.
Moreover, Decentraland is a specific type of metaverse that uses blockchain, used in crypto slots that have experienced their own boom and surges in growth in recent years. Crypto gambling based on the blockchain technology is a highly favorable activity for many as the use of digital assets has provided the iGaming community with a number of benefits. Advantages include positives like providing a greater degree of security, privacy and anonymity, whilst crypto tokens can also provide users with cheaper and faster transaction speeds compared to traditional methods.
Assets that are purchased within the Decentraland metaverse, including land and other items, are all acquired in the form of non-fungible tokens (NFTs), which is a type of crypto asset that has entered the mainstream market as of late. The land that can be bought is purchased with MANA, which is Decentraland’s own form of cryptocurrency and users will buy the assets as a form of speculative investment. It is worth noting that MANA is highly volatile.
The Metaverse Group, which is a subsidiary of Canadian company Tokens.com, decided to purchase a patch of virtual real estate for 618,000 MANA, which is understood to have been worth approximately $2,428,740 at the time of the transaction, a spokesman from Decentraland and a statement from Tokens.com had confirmed. Additionally, Reuters had managed to see confirmation regarding the land’s purchase as it was recorded on OpenSea, an NFT marketplace.
Decentraland has revealed that the land purchased was the most expensive to have been bought so far, with the plot being located in the Fashion Street area of the metaverse’s map. The land is made up of 116 smaller parcels that measure 52.5 square feet each, thus making it 6,090 square feet in total virtual size.
Fashion is thought to be the next area for huge growth in the metaverse, and Tokens.com has already revealed that they would be looking to take advantage of it by hosting digital fashion events and selling virtual clothing for avatars.
“Fashion is the next massive area for growth in the metaverse,” Sam Hamilton, head of content at the Decentraland Foundation said in a statement posted on Tokens.com’s website. “So it’s timely, and very exciting, that Metaverse Group has made such a decisive commitment with this land purchase in the heart of Decentraland’s fashion precinct.”
The $2,428,740 transaction eclipsed the amount a virtual plot of real estate had been sold back in June, with a previous figure having been worth 1,295,000 MANA ($913,228) at the time. A virtual shopping center had been built to sell digital clothes, however Reuters has managed to visit this site multiple times and not see any shoppers.