Virtual worlds Decentraland and The Sandbox have become magnets for investors willing to pay millions of dollars to own a piece of “nonexistent land.”
Facebook, now known as Meta, only accelerated the trend by announcing its own virtual world creation project.
“Virtual real estate prices have increased by 400 to 500 percent in the last few months“Tokens.com CEO Andrew Kigel told CNBC.
His company recently spent more than $2.5 million on a piece of land in the crypto-based metaverse Decentraland running its own currency, MANA.
This wasn’t even the most expensive land purchase in the metauniverse in recent months. Virtual real estate company Republic Realm has spent $4.3 million to buy a “property” in the meta-universe The Sandbox, built by Atari.
Experts are already warning potential investors in meta-universes not to invest their money unless they are willing to lose it.
“If the situation continues to develop like this, we are certainly talking about a bubble. However, you are buying something that is not tied to reality,” said Mark Stapp, a professor of real estate theory at Arizona State University.