Virtual real estate land sells for a record $ 2.4 million


Band Elizabeth Howcroft

LONDON, November 23 (Reuters)Virtual real estate plot in Decentraland online world has sold for a record $ 2.4 million worth of cryptocurrency, crypto-investor buyer Tokens.com COIN.NLB and Decentraland said Tuesday.

Decentraland is an online environment – also known as a “metaverse” – where users can buy land, visit buildings, walk around, and meet people as avatars.

Such environments have grown in popularity this year as the pandemic has caused people to spend more time online.

Interest increased last month when Facebook changed its name to Meta to reflect its focus on developing virtual reality products for the Metaverse.

Decentraland is a specific type of metaverse that uses blockchain. Land and other items in Decentraland are sold in the form of non-fungible tokens (NFTs), a kind of crypto asset.

Crypto enthusiasts buy land there as a speculative investment, using Decentraland’s cryptocurrency, MANA.

A subsidiary of Tokens.com called the Metaverse Group on Monday bought land for 618,000 MANA, or approximately $ 2,428,740 at the time, a Decentraland spokesperson said and a statement from Tokens.com.

Reuters also saw the purchase of the land registered on the NFT OpenSea market.

Decentraland said it was the most expensive purchase of virtual real estate land on the platform.

The land is in the “Fashion Street” area of ​​Decentraland’s map and Tokens.com has said it will be used to host digital fashion events and sell virtual clothing for avatars.

It is made up of 116 smaller parcels, measuring 52.5 square feet each, making the land an area of ​​6,090 virtual square feet.

Andrew Kiguel, CEO of Tokens.com, said the assets will complement real estate already owned by Metaverse Group.

In June, a virtual lot in Decentraland sold for 1,295,000 MANA, valued at $ 913,228 at the time. Buyers have built a virtual mall to sell digital clothing, but Reuters has visited this site several times since and has not seen any buyers.

MANA is very volatile. It has gained around 400% this month according to Coinbase, peaking after Facebook’s name change.

UPDATE 13-Facebook changes name to Meta as it refocuses on virtual reality

EXPLAINER – What is NFT?

(Reporting by Elizabeth Howcroft; Editing by Saikat Chatterjee and Barbara Lewis)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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