Summary

A Yuanverse real estate parcel is an NFT, providing its holder with digital proof of land ownership on the Yuanverse platform. In most cases, lands on the Metaverse platform can be used to create experiences that facilitate many areas such as advertising, social, marketing, and entertainment. The value of each land parcel depends both on the actual utility of said experience, as well as overall market sentiment, collectability, and platform popularity.

Introduction

The concepts of the metaverse and digital real estate are closely related. However, as with many cryptocurrency trends, media coverage did not provide enough clarity. As with all other investments, investors must have a thorough grasp of the concepts of Metaverse real estate before purchasing any digital land. Because the utility and use cases of Metaverse Real Estate are simple and easy to understand, it is easier to understand than pure art NFTs.

In what form does real estate exist in the Metaverse?

Digital real estate may sound very contradictory to those new to the Metaverse space, as real estate is often closely intertwined with the concept of physical property . However, while blockchain-based real estate in the Metaverse may not be physical property, it provides the same (or even stronger) ownership rights to a piece of (digital) land. Land ownership in games, communities, or other platforms is represented by non-fungible tokens (NFTs).

Because NFT is irreplaceable (that is, each NFT is unique) and can provide secure digital ownership proof , thus functioning similarly to a property deed in digital real estate. NFTs can be traded and bought and sold based on their market value, which depends on many factors.

If the investor’s Yuanverse real estate is located in a popular area with large digital traffic, it is suitable for advertising. Mortgage earnings and other utilities can also boost the value of the land. In addition, land value also depends on the specific Metaverse platform on which the investor is located.

Some metaverse platforms can provide users with a high degree of personalization, that is, users can freely build and plan their own spaces and activities on such platforms and experiences, such as Snoopverse on The Sandbox and experience content created by Netflix on the Decentraland platform.

The attraction of Metaverse real estate

To understand the Metaverse real estate Attractiveness, we need to take a step back and look at the overall appeal of NFTs. From a technical perspective, NFT can provide legal proof of digital ownership: in a world where copying indistinguishable files has become extremely easy, the irreplaceability of NFT is extremely valuable.

Next, let’s look at collectibility. Humans have always been interested in collecting objects for various reasons. In addition to enjoyment and collection, NFT can also provide holders with some tangible benefits, such as increasing the utility of games or platforms.

Another major attraction of NFT is its investment potential, which is also the reason why many investors regard it as a speculative asset. Under strong market conditions, NFT prices tend to rise with market prices. In some ways, the NFT bull market is also the result of celebrities and media hyping the technology.

The reason why many people buy Metaverse Real Estate NFT is because they consider all the above factors. For example, JPMorgan Chase purchased land on the Decentraland platform to obtain:

1.Practicality: Yes Host virtual guests in its Sandbox land for an immersive experience.

2.Collectibility: Metaverse real estate is a popular culture with great collectible value. Helps promote marketing.

3.Speculative real estate: The expectation is to sell land to make a profit or to increase revenue by attracting customers.

What are the uses of Yuanverse real estate?

Because virtual real estate is limited only by the metaverse, it holds huge potential in people's social and professional lives. This potential is both beneficial for investment and trading, and will promote the widespread use of this technology in the long term. Everything that the Metaverse can cover can be experienced through Metaverse Real Estate. Specific use cases and complexity will depend on the Metaverse platform chosen by the user, but in theory there is no limit.

Individual users, creatives and brands can design their own unique experiences based on the content offered by their specific properties. Concerts, conferences, trade shows, art exhibitions and brand launches can all be held on the digital land. Therefore, Metaverse Real Estate is expected to become an extremely important social and marketing tool. Large brands currently experimenting with this format include:

1.HSBC:In 2022 In the first quarter, we purchased a piece of land on The Sandbox platform and planned to create a new brand experience.

2. Samsung: Created a mobile phone called Samsung 837X on the Decentraland platform em>’s virtual experience and hosted #RecycleUp fashion shows and other events.

3.South China Morning Post: A digital version of Hong Kong’s Star Ferry Terminal was developed on The Sandbox platform ( Hong Kong Star Ferry Pier).

The development of Metaverse real estate

The rapid development of Metaverse real estate and The sales growth has attracted widespread attention from the global media, public and investors. According to Influencer Marketing Hub, "the average price of land parcels on major Metaverse platforms has increased from $1,265 in January 2021 to $12,684 in February 2022," a ninefold increase. many. In addition, McKinsey also reported that “more than US$120 billion has flowed into the Metaverse in 2022, which is twice as much as the US$57 billion in 2021.”

These growth numbers can be staggering for this young industry. However, rapid growth in market capitalization does not necessarily equate to a sustainable and healthy market. We may need to wait until this hyper-growth phase passes before we can see the true value of metaverse land. Still, some early investors have profited from the Metaverse's rapid growth. For example, a piece of land near Snoop Dogg Real Estate sold for nearly $500,000.

What are the factors that affect the price of NFT virtual land?

The appeal of NFT virtual land has been briefly introduced above. Next, we will delve into the three major factors that determine the price of virtual land. Key Factors:

1.Utility: Every Metaverse platform, game, or system is Virtual real estate defines a utility. Some of them are highly customizable by users, while others provide users with in-game benefits or attribute bonuses. If the utility of NFT virtual land is extremely attractive, it will be able to be sold at a higher price on the open market.

2.Platform:As mentioned above, the Metaverse platform where the user’s land is located will determine the actual utility of land. In addition, the brand name and reputation of the platform will also affect the value of user NFT land. This is similar to the fact that Nike or Adidas products are much more expensive than other brands of similar quality but less well-known.

3.Speculation: Generally speaking, people’s expectations for the future appreciation of Metaverse real estate are enough affect its price. If the entire market agrees with this sentiment and is unanimously bullish on Yuanverse land prices, speculation will become an important factor in determining land prices.

Summary

The long-term and widespread application of Metaverse real estate is more than just hype, but a strong proof that they rely on actual use cases and utility to win the trust of the market. Still, it’s amazing how many amazing developments Metaverse Real Estate has made in a very short period of time. As the Metaverse grows in popularity and its building blocks continue to be added, its maturity will continue to increase. Therefore, all potential users or investors interested in the future development of the Metaverse should learn more about digital real estate.