Metaverse concept continues to break the circle, and the speculation of virtual real estate is questioned

Our reporter Zhao Xueyi trainee reporter Xu Linyan

Recently, a piece of news about virtual real estate added a fire to the concept of “Metaverse”.

Recently, in the virtual world platform decentraland, a piece of digital land was sold at a high price of $2.43 million (about 15.52 million yuan), setting a new price record for virtual real estate. This land is located in the fashion street estate. The buyer is metaversgroup, a subsidiary of digital investment group This digital land will be used to expand digital fashion real estate.

The news of “sky high virtual real estate” quickly attracted people’s attention. Many people are “puzzled” about this phenomenon. Real estate in the real world will give people a sense of belonging and can help people shelter from the wind and rain. However, where is the value of virtual real estate? Why can an invisible virtual land be sold at such a high price?

In fact, virtual real estate has long been nothing new. More than ten years ago, a British online game player sold his virtual real estate in Entropia Universe at a high price of US $635000. This game focuses on developing colonies in the universe.

Decentraland mentioned above was established in 2017. The last transaction record of virtual real estate occurred in June this year. The buyer is Metaverse real estate investor and developer Republic real, which purchased 259 digital land in decentraland at the price of 1.295 million mana coins, about US $913000. According to the official website of Republic real, it is one of the largest landowners in axieinfinity, decentraland, the sandbox and treeverse.

Previously, a post-95 couple in Shanghai bought a virtual real estate to be used as a wedding house. Recently, axieinfinity also tweeted that a piece of Genesis land in the game was sold at the price of 550eth, with a value of about $2.3 million.

The higher the price, the newer people’s cognition again and again. How long will the “real estate speculation fever” of Metaverse last?

“This high priced virtual real estate is more of a gimmick. In order to maintain the development heat of Metaverse, some eye-catching concepts will continue to be added. For example, the concept of virtual super yacht has appeared recently. From the perspective of practitioners, the transaction situation of this sky high priced virtual real estate will not last long, and the authenticity of its actual trading volume data needs to be verified.” An employee of Metaverse industrial chain who asked not to be named said.

Another question to consider is whether we can measure the value of virtual real estate from the perspective of real-world real estate? Yan Yuejin, research director of the think tank center of E-House Research Institute, told the Securities Daily that the Metaverse virtual real estate transaction is more a financial problem and needs the supervision of the financial sector. As for the relationship between such transactions and real estate, it still needs to be observed. In the Metaverse world, the positioning and function of such virtual real estate need to be further studied.

So, is the virtual real estate whose price is “fried” really worth it? Jiang Han, senior researcher of Pangu think tank, told the Securities Daily that if Metaverse gets a very good development in the future, the real estate in Metaverse must have its price. Because in the market, as long as the demand is growing rapidly and the supply is relatively limited, there will inevitably be a shortage of supply. However, for the current so-called real estate speculators in Metaverse, it is a pure speculation concept. Because there is still a long way to go to truly achieve Metaverse, and in the absence of a consensus on the means of Metaverse’s technology implementation, the so-called concept of building Metaverse and hyping real estate on the top is “beating the drum and spreading flowers”. It is a bubble without any value.

(editor Cui Mancai Shandan)