Abstract

NFT virtual land is a digital land area owned by oneself on the Metaverse platform. Popular NFT land projects include Decentraland, The Sandbox and Axie Infinity. NFTs are suitable for representing land ownership because each NFT is unique and digital ownership can be easily verified. NFT land can be used for advertising, social, gaming, work and other use cases.

Personal land parcels are often used by landowners to enjoy online experiences, display content, or monetize in-game play. Big brands and celebrities such as Adidas and Snoopy have also begun investing in and using NFT land.

The value of land is affected by utility, project and market speculation. You can purchase NFT land from land sales projects or on the secondary market through NFT trading platforms such as Binance NFT Market or OpenSea. Before purchasing, make sure you understand the risks and use cases of the land and its associated projects. Certain situations may be more appropriate to lease NFT land rather than purchase.

Introduction

The development of the Metaverse has rapidly given rise to interesting new blockchain use cases. In 2020, the Metaverse and non-fungible tokens (NFT) will usher in major developments, and virtual land will naturally become a hot topic.

Some NFT land sales are higher than real-world housing prices, making it difficult for some people to understand the concept. In fact, there are many similarities between NFT land and physical real estate. As a digital asset on the blockchain, NFT Land has some unique features to be explored.

What is the Metaverse?

The Metaverse is an online virtual world that combines multiple aspects of digital life such as work, social interaction, and entertainment with real life. In 2021, many technology giants such as Meta (formerly Facebook), Microsoft and Epic Games began to develop and explore this field. The role of blockchain technology in the Metaverse is crucial, as digital ownership, identity, and economics are core concepts. To learn more, read our introductory article on the Metaverse.

What is NFT virtual land?

As mentioned earlier, the Metaverse project is a digital world that users can often explore using 3D avatars. For example, SecondLive provides venues for concerts, conferences and expos. Unlike other Metaverse worlds, projects such as SecondLive do not let users purchase a permanent virtual reality space. Developers plan large areas of land, divide them into smaller plots, and sell them on the market.

Users purchase NFTs associated with specific parcels of land, representing unique ownership of the area. You can buy the land directly when the project sells it or purchase the plot on the secondary market. The uses of NFT land vary from project to project.

What are the use cases for Metaverse Land?

Beyond speculation, landowners can use their virtual space for a variety of scenarios:

1. Advertising - If your plot is located in a popular Areas that attract many tourists can charge you for advertising space.

2. Social - You can hold concerts, conferences, community gatherings and other activities on your own digital land.

3. Gaming - Your NFT land may come in handy in an NFT video game. For example, the land of Axie Infinity can provide additional resources, tokens, and crafting ingredients.

4. Work - Land that can be explored with 3D avatars can be used for virtual office spaces or to provide digital services. PwC's Hong Kong office will use The Sandbox land in its Web 3.0 consulting services.

Multinational companies are buying metaverse land?

Prominent celebrities and brands have begun purchasing land in the Metaverse. For example, Snoopy is creating his own Snoopy Metaverse experience at The Sandbox. Adidas is also purchasing space on the platform for its ownAdiVersemetaverse experience. In addition to joining the Metaverse and NFT hype, brands and companies will provide users with opportunities to interact with them by offering Metaverse services, games and products.

Investors in NFT land have even risen from retail investors to institutions. For example, Metaverse Group made headlines when it purchased a large amount of digital real estate, which we will explore in depth later. The group is even almost headquartered in Decentraland’s Crypto Valley. In December 2021, consulting firm PwC also purchased land parcels in Decentraland as part of its web 3.0 consulting services.

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

Virtual land pricing is similar to other non-fungible tokens or cryptocurrencies. The following three major factors need to be studied:

1. Utility-Virtual land is different from many other NFTs in that it often has multiple use cases. These use cases will vary depending on the platform they are on. For example, digital worlds like Decentraland allow users to customize and create freely on their own land.

If your property is in a popular location or has many visitors, you can charge advertising fees. Your lands may also generate revenue for you in blockchain video games. You may get better and unique experiences by staking trial funds or participating in in-game activities such as Axie Infinity.

2. Platform- Popular platforms such as Decentraland, The Sandbox or the soon-to-be-released My Neighbor Alice tend to have higher NFT land prices. This is determined by market supply and demand. These platforms have a much higher user base and attention than smaller projects.

3. Speculation-The large-scale sales of NFT land in the past led to increasingly rampant speculation. For example, in November 2021, NFT real estate company Yuanshi Group invested approximately US$2.43 million to purchase a parcel of 116 plots in Decentraland. Each plot is 16 m2, with a total area of 1856 m2, all located in a fashionable neighborhood.

How to buy land in the Metaverse

There are two ways to buy NFT land in the Metaverse. You can participate in land sales and buy directly from the project or from other users through the market.

NFT land sales allow you to purchase land at a price lower than the secondary market price. Prices for most NFT land large-scale Metaverse projects are increasing, which means buying when land is for sale is often the best time. Some projects sell all their lots at once, while others sell them in rounds.  

The NFT trading platform is the safest and most reliable way to purchase land in the secondary market. Both buyers and sellers are protected by smart contracts, which ensure smooth transactions between both parties. Binance NFT Market and OpenSea are the two most used platforms. Binance NFT Market supports Ethereum and Binance Smart Chain, and OpenSea supports Ethereum, Polygon and Klaytn.

Instructions for buying metaverse land for the first time

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The precautions for purchasing NFT land in the Metaverse are the same as other investments or financial transactions. Be sure to do your own research and consider the following points:

1. Purchase NFT land from reliable sources. If purchasing land through project sales, please make sure to use the correct official link. If buying land from someone else, never transfer money directly to their wallet. Always buy through a trustworthy, reputable marketplace or cryptocurrency exchange. As mentioned earlier, you have the options of Binance NFT Market and OpenSea.

2. Decide whether to buy or lease NFT land. Depending on your specific needs, you may not need to purchase land. For example, you might want to host an event in a popular area. If you are using a platform that supports leasing, the price you pay depends on the site’s traffic, size, and proximity to other important sites.

3. Carefully consider NFT land projects. The project you choose will determine the utility and part of the cost of the NFT. If you want to speculate, look at the project's fundamentals, such as popularity, number of users, and team. If you want to sell ad space or use it for other purposes, research which Metaverse platforms will best meet your needs. Not all NFT projects will be successful, so be sure to consider the financial risks before purchasing NFT land. If you buy land that has no use or market demand, you may not be able to sell it.

Summary

For many people, sales The idea of a virtual land may seem unbelievable. But you only have to look at the rise of NFTs, digital collectibles, and the Metaverse to understand what NFT land is all about.  

Owning virtual land is not much different from owning a website or other virtual space. For example, popular domain names have sold for hundreds of thousands of dollars. However, the way NFT land is used to ensure ownership is what makes it unique. The tech world is preparing for the future of the Metaverse, and we don’t need to be surprised to see more Metaverse NFT land for sale soon.