“Metaverse real estate” is on fire? Investment still needs to be cautious!

On February 18, 2022, according to the official website of the CBRC, some criminals rubbed hot spots and absorbed funds under the names of “metaverse investment” project and “metaverse chain Tour”, suspected of illegal fund-raising, fraud and other illegal and criminal activities. In this regard, the China Banking and Insurance Regulatory Commission today issued a risk warning on preventing illegal fund-raising in the name of “metaverse”.

Among them, the third point is the malicious speculation of metaverse real estate for money. Some criminals use the concept of metaverse hot spot to exaggerate the expectation of the rise of virtual real estate prices, artificially create the illusion of rush buying, guide the approach to hoard trading, and continue to be vigilant against the risk of such speculation.


What is metaverse? There is currently no accepted definition. To be exact, metaverse is not a new concept. It is more like the rebirth of a classic concept. It is the concept materialization under new technologies such as extended reality (XR), blockchain, cloud computing, digital twinning and so on.

In 1992, Neil Stephenson, a famous American science fiction master, described metaverse in his novel avalanche: “put on headphones and eyeglasses, find the connection terminal, and you can enter the virtual space simulated by computer and parallel to the real world in the way of virtual separation.”

In the 2022metaverse industry trend report, sutu metaverse Research Institute put forward the “four characteristics” of metaverse, including social first, sensory immersion, interactive openness and ability scalability, so as to help more readers understand “metaverse”.

If you’ve seen the movie “the number one player”, it’s not difficult to find the element of “metaverse” in it. We can have the identity and life we want in the game, meet new friends, work in it, and even many real opportunities will be realized in metaverse’s virtual world.

Metaverse real estate speculation

How was metaverse real estate speculation set off?

First, the basic logic supporting metaverse real estate speculation lies in the prospect of “metaverse”. It is regarded by many people as the next form of the Internet world after the Internet and social media, with great development potential.

It is reported that “Jingneng Longhu Xishang”, the latest real estate of Longhu group in Beijing, will carry out relevant cooperation with tianxiaxiu’s metaverse social product rainbow universe in the fields of “metaverse model room”, “virtual decoration scene” and virtual community, so as to create an immersive experience environment and marketing scene.

The technological innovation brought by metaverse enables the development of real estate real economy industry, or will provide a new direction for the transformation of traditional industries.

Second, similar to real estate speculation, real estate speculation in metaverse is also largely based on the scarcity of real estate. There is also a virtual ceiling to avoid the depreciation of real estate.

Third, metaverse real estate still has the functional attribute of real estate. Although the virtual real estate can not let us live in it, in the virtual world, investors can still carry out construction, decoration, rental, operation and other activities on it. It has the vast majority of properties of real world real estate.

Although metaverse real estate sounds attractive, its risks should not be underestimated. At present, the concept of metaverse is in an ideal state and looks promising. Once it loses attention or the virtual currency fluctuates, the losses to investors will be immeasurable and may even lose their money.

The transaction supervision of metaverse real estate needs to be continuously improved. In September 2021, the people’s Bank of China and other ten departments issued the notice on further preventing and dealing with the speculation risk of virtual currency transactions, clarifying the essential attributes of virtual currency and related business activities: 1. Virtual currency does not have the same legal status as legal currency. 2. Virtual currency related business activities are illegal financial activities. 3. It is also an illegal financial activity for overseas virtual currency exchanges to provide services to domestic residents through the Internet. 4. There are legal risks in participating in virtual currency investment and trading activities.

I would like to remind you that any kind of investment is risky. In the face of temptation, participants are vulnerable to property losses. We also need to enhance our prevention awareness and identification ability.