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Plot of virtual real estate sells for $2.4M

On Tuesday, the buyer, crypto investor Tokens.com (COIN.NLB), and Decentraland announced that a piece of virtual real estate in the online realm called Decentraland had sold for a record $2.4 million in Bitcoin. Decentraland is a virtual world – often known as a “metaverse” – where users can buy land, visit buildings, move around, and interact with other users as avatars.

Virtual real estate plot sells for record $2.4 million

As a result of the pandemic, people have spent more time online this year, and such places have grown in popularity. Last month, when Facebook changed its name to Meta to reflect its focus on producing virtual reality products for the metaverse, it sparked a surge in interest.

Plot of virtual real estate sells for $2.4 million

Image Source: Zee News

Decentraland is a virtual world powered by blockchain technology. In Decentraland, non-fungible tokens (NFTs), a sort of crypto asset, are used to buy land and other commodities. Decentraland’s cryptocurrency, MANA, is used by crypto enthusiasts to buy land there as a speculative investment.

According to a Decentraland spokesman and a statement from Tokens.com, the Metaverse Group, a subsidiary of Tokens.com, bought a piece of real estate on Monday for 618,000 MANA, which was around $2,428,740 at the time.

The land acquisition was also documented on the NFT marketplace OpenSea, according to Reuters. It was the most costly purchase of virtual real estate on the site, according to Decentraland. The land is located in Decentraland’s “Fashion Street” region, and Tokens.com stated that it will be utilized to organize digital fashion events and sell virtual apparel for avatars.

It’s made up of 116 smaller sections, each measuring 52.5 square feet, totaling 6,090 virtual square feet of land. Tokens.com CEO Andrew Kiguel said the assets would complement Metaverse Group’s existing real estate holdings.

A virtual block of land in Decentraland sold for 1,295,000 MANA, or $913,228 at the time, in June. The purchasers constructed a virtual shopping mall to sell digital apparel, but Reuters has visited the site several times since and has yet to see any customers. MANA is very volatile. According to Coinbase, it has increased by about 400 percent this month, with a spike following Facebook’s name change.

El Salvador’s President, Nayib Bukele, recently announced that his country would construct the world’s first “Bitcoin City” to facilitate investment. The government had previously issued the first authorized Bitcoin tender in the world. However, the International Monetary Fund (IMF) has advised El Salvador to avoid utilizing Bitcoin as an official tender due to the financial dangers involved.

Before engaging in cryptocurrency trading, banks in the United States must demonstrate that they have risk management systems in place and obtain written clearance from supervisors. A number of crypto-related activities have been prohibited by US institutions.

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Also read: El Salvador’s ambassador to the US claims the US is only concerned about losing its power

 

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