JJ Lin, a Singaporean singer, songwriter, record producer and actor, bought three virtual lands in decentraland, a cryptocurrency market, where virtual real estate can be bought and sold, and users can log in and stroll in “Metaverse”.
He currently owns three decentraland virtual plots: prime Gallery 1, primary Gallery 2 and the plot nearest to Genesis Plaza. The three plots were purchased in the opensea NFT market at a price of 6000 mana (cryptocurrency of decentraland) or approximately 30000 US dollars (S $41000) per plot based on the current price (approximately US $5 / Mana).
According to the transaction records of opensea, two of the three plots (prime galleries 1 and 2) were purchased by an opensea account owner named dan309 about a month ago, and then transferred to Lin Junjie’s opensea account five days ago with the user name meta_ Enigma。 For the nearest Genesis square, the record shows meta_ Enigma purchases directly from user dcf753.
According to foreign media reports, Lin Junjie posted his favorite decentraland virtual world on twitter on November 23 and called on netizens to “is there anyone together?”, causing heated interaction.
Since each pixel on the decentralized land plan is 52.5 square feet, Lin Junjie paid about S $780.95 per square foot of real estate on the decentralized land. This is almost the PSF price of Geylang Serai’s 4-bedroom block house or Loyang village’s 4-bed corner terrace.
Although most users buy NFTs and virtual land for speculative reasons, some users do so because they are associated with these virtual environments. Some people buy them to build their own virtual houses, establish their own brands, or display their non functional game collections for users to visit and enjoy. One reason for this resurgence of interest or hype is that Facebook recently renamed meta and plans to develop its own version of Metaverse.
Lin Junjie recently purchased one of the three virtual plots. This is the nearest Genesis square (X: 29, Y: – 5), for which he paid 6000 mana (or about S $41000). As an owner, he can renovate the land to whatever he likes, or hold it for resale in markets like opensea. Picture: decentraland
For most people with experience in the real estate industry, the price Lin Junjie pays for these “non-existent” land may deter us. However, he is no stranger to purchasing virtual assets (NFT), including digital 3D paintings, expression packs or virtual images on the blockchain.
On November 8, Lin Junjie purchased a rare cryptopunk NFT (No. 8601) with 125 Ethereum (ETH) (worth US $555000, which is S $761000 at the current price).
Two reasons why some NFTs are highly valued (some say overestimated) are that they are immutable on the blockchain. They cannot be changed or removed) and rare (e.g. there are only 10000 cryptopunks in circulation now).
Of course, in the real world, Lin Junjie is also a smart real estate buyer. In August 2021, he bought two luxury high-rise apartments in Taipei, Taiwan for $18.9 million. He already owns a 2846 square foot house in the area and a 2134 square foot house in Da’an district (worth NT $63 million or S $3.1 million).
About the same time as Lin Shuhao’s recent purchase, another plot to the central area was sold for $2.4 million – the most expensive virtual real estate purchase record in Metaverse (so far).
The transaction was located in the “fashion street” area of decentraland map and was acquired by Metaverse group, a subsidiary of publicly listed tokens.com, at the price of 618000 mana (equivalent to US $2428740 at that time). The land consists of 116 smaller plots, each with an area of 52.5 square feet, equivalent to 6090 square feet. This is equivalent to about $400 per square foot (S $548 per square foot). Metaverse Group intends to cooperate with decentraland to develop real estate for fashion shows and commerce.
On November 25, another digital plot was sold in the virtual game environment of axis infinity at the price of 550 eth (about US $23.3997 million). The seller has held the plot since January 22, 2019.
Is it a red sea or a bubble?
Any speculation related to cryptocurrency, contactless financial products or virtual real estate is an unstable and high-risk attempt. It is worth noting that more and more celebrities, sports teams and brands have recently joined the ranks of non functional games and virtual real estate (and publicly share their purchases).
From TV talk show hosts Jimmy Fallon, Snoop Dogg to Smurfs and other brands, South China Morning Post and yadali have invested in virtual real estate on platforms such as the sandbox (sand / land) and decentraland (mana).
No one can really predict how these virtual platforms will develop, let alone define how their environments, assets and technologies will develop. It is generally self-study (dyor), rather than as a form of investment advice.
Anyone who has invested in real estate in the real world will tell you this – something you can’t see or touch can collapse overnight like a house of cards. Speculators will tell you to invest only what you can afford to lose – just as you see hopeful gamblers lining up at toto and 4D stalls every week.
For most millennials and gen – Z, this is the opposite view. They usually constitute the main body of these virtual real estate buyers and sellers. Most of them can’t afford to own luxury waterfront properties or own real estate like their ancestors. Therefore, for them, becoming the early or first person to claim to own these virtual real estate lands is like a virtual gold rush.
Most people just build their virtual world there and share it with their followers. Some people intend to make a profit from resale, but a considerable number of people hope that these lands can be retained indefinitely so that they can pass on their value to the next generation, just as our great great grandfather treated real estate and land before the war.
Author: Terence ang