The space run by the rapper is in Land in The Sandbox.
There is a place called The Sandbox.
The land rush in the metaverse is turning heads as deals carry price tags of $2 million and more, and executives at two prominent digital-land development firms say valuations reflect big plans for people worldwide to shop, play and work in the virtual world.
The most expensive deal so far is the land purchase by Republic Realm from Atari SA in The Sandbox metaverse.
"We bought a city, or the equivalent of one," Yorio told Insider this week. She said that the company bought a 24 x 24 parcel with each parcel the equivalent of 100 meters. We paid a lot for it because we want to do something big.
Video game developers and entertainment brands are predicted to be among the biggest drivers of Web 3.0 by Yorio, who worked as a real estate investment executive for a decade. A $10 million investment by billionaire Mike Novogratz's company is reported to be in Republic Realm.
"We think the Fashion District purchase is like buying on Fifth Avenue back in the 1800s, or the creation of Rodeo Drive," said Metaverse Group's CEO, Lorne Sugarman.
Metaverse Group made a purchase of parcels in Decentraland, a 3-D universe where some land can be monetized.
How is virtual land valued?
Sugarman and Yorio said that some metrics used in the physical real-estate market are similar to those used in the digital land market.
Land in the real world is limited. It is a similar principle in the metaverse. There is a shortage of land in The Sandbox, according to the Metaverse Group. The basic units are 96 x 96 meters.
There are 90,601 parcels in Decentraland, but only about 44,000 are allocated for private purchases and sales.
If Decentraland were ever to release new land, they would have to get all of the currency holders and landholders to vote for it. I don't think that would happen because the community doesn't want us to harm our land and currency. It would have to be a very good reason for that to happen.
Each parcel is 16 x 16 meters. The platform's native token is MANA. The price of MANA has increased by more than 4,000% this year and is currently trading around $3.41 on Friday. Metaverse coins can be subject to large price swings.
The company runs "comps," or comparables, in evaluating virtual-land worth, according to Sugarman.
We look at prices using marketplaces. We look at the location. He said that they look at what foot traffic can be and what yield they can get. "We're looking at all the traditional metrics that you would see in the real world and determining the right price."
The Republic Realm team looks at comparable sales as part of its valuation process, but Yorio doesn't see some real-world metrics, such as foot traffic, as applicable on the metaverse.
She said that there aren't that many monthly active users today.
Yorio said that valuation techniques used by venture capitalists are helpful because most metaverse platforms haven't launched yet.
You interview the founders and find out their background. She said that if they've launched a successful video game in the past, that's a good sign. Good marketers are required for game developers to be sophisticated software engineers. If they built the best game in the world and nobody knows about it, it's a flop.
Fantasy Island is a luxury real estate development. It will work with Atari on game development. Yorio said that tracking early buzz about metaverse projects on social media is a way to gauge digital land worth.
We want to build things on the land. She said that the only way the metaverse becomes interesting is if there are things to do and people to see.
Business Insider has an original article.
