As interest in the metaverse has grown, more and more investors have flocked to the virtual world in search of a piece of digital real estate that many believe will be the future of social networking, work, and entertainment.
Speaking with CNBC, CEO, and founder of Tokens.com, Andrew Kiguel, discussed why some investors are willing to spend millions of dollars for parcels of land; he noted: “prices have gone up 400% to 500% in the last few months.”
Although the land doesn’t exist in the actual world, it does exist in the metaverse, and the opportunities are abundant there, according to the entrepreneur whose company recently spent almost $2.5 million in Decentraland (MANA).
“The metaverse is the next iteration of social media. You can go to a music concert; you can go to a museum, all types of different experiences that you can explore and get immersed with,” the CEO said.
Digital islands the same price as a home in the US
Elsewhere, Republic Realm CEO Janine Yorio, whose company had recently spent a record $4 million on a parcel of land on The Sandbox (SAND), revealed that last year, she sold over 100 private islands at $15,000 each on the platform.
“Today they’re selling for about three hundred thousand dollars each which coincidentally is exactly the same as the average home price in America,” Yorio revealed.
According to real estate broker Oren Alexander:
“The digital world to some is as important as the real world. So it’s not about what you and I believe in, but it’s about what the future does.”
Similarly, Kiguel added:
“This is like buying land in Manhattan 250 years ago as the city is being built.”
It appears that Meta (NASDAQ: FB), formally known as Facebook’s transition to virtual reality, along with the Covid epidemic, and the fact that everyone has been confined indoors for a long time seeking ways to interact, has sparked a digital land rush that has swept the online world.