The Metaverse Land Rush
META NFT Digital Assets
– In the year 1854, you could purchase 1000 acres of land in the United States for about $125, which in today’s currency evaluates at about 3,300 bucks. And although that’s a nice chunk of change, if presented to anyone today, they would gladly jump at the opportunity. And if you fast forward today, I believe there’s an opportunity with similar potential, and that is purchasing land in the metaverse. Like land in the 1800s, they couldn’t foresee what was possible with the land that they were purchasing at the time, and I think the same can be said here about the metaverse, but we’re already getting a taste of what’s to come. Travis Scott, a musician, did a concert over $20 million in revenue inside of Fortnite in 2020.
The CEO of Zoom in an interview has already said he’s excited about the metaverse, and Facebook has completely rebranded their name to Meta, so I think big things are on the horizon. And that’s why I went ahead and I purchased a metaverse property. And in this video, I’m going to be disclosing what strategies I use, ways you can make passive income in the metaverse, and which metaverse project I invested in and at what price. And if I would’ve seen a video like this before starting my journey, I would have saved tens of hours of research doing so. And be sure to stick around to the end of the video, because I’ll be sharing with you some tips and secrets on how you can get land in the metaverse absolutely free.
Now, when it comes to the metaverse, this is something that’s been around for quite some time, but as of late, it’s been really exploding. And there are plots of land that you could have purchased for a few hundred dollars in 2019 that are now being sold for tens, if not hundreds of thousands of dollars. Now, if you aren’t familiar with the metaverse, it’s just a virtual reality where people can go to play games and experience things.
And the most common example people reference when talking about the metaverse is the movie done in 2018 by Steven Spielberg called “Ready Player One.” And if you aren’t familiar with that movie, another movie you might be familiar with is “WALL-E.” And it takes a different spin on the virtual reality as well. Although I necessarily don’t agree with the premise in those movies, I think it’s undeniable to say that that’s not the direction we’re headed in one capacity or another. And I think one of the biggest arguments against the metaverse is not if it’ll happen, is when it’ll happen, and how long something like this will take to unfold.
Now, one of the main drawbacks I see with these land parcels that are being sold as NFTs, although they do have a finite supply of land within that metaverse, it doesn’t mean that there’s a finite amount of metaverses to choose from. And not only do these metaverses have to compete against one another, but they also have to compete against other traditional avenues on why people spend their time, such as watching TV, spending time with friends and family, and the list goes on and on.
And all that being said, I went ahead and I still decided to invest in the metaverse, but where do I start? It was kind of overwhelming. Now when I was looking at different land in metaverses to buy, I broke this up into a few different categories.
The first one was just comparing all of the metaverses against one another, comparing the prices of their lands, as well as their use cases and ways you can make passive income inside of that metaverse. Now you can see a list of metaverses on Open Sea, and I’ll leave a link in the description below, but you can see quickly by volume, which ones are the most popular.
Now this does not include all of the metaverses with land out there, but it does include a decent size amount of them. And after doing all my research on the different metaverses out there, I decided I was going to purchase a piece of land in one of these four areas. One was Sandbox, Axie Infinity, Decentraland and Somnium Space. And these four projects are really divided into two categories.
Two are more NFT gaming related and the other two are more experience-based, VR related.
Now some runner up projects that I still think are great candidates for people to look into that I did not go for for one reason or another are CityDAO, Aetheria, Wilder World and DeFi Land. So be sure to check those out as well. Now let’s start with my runner up candidate, the one that I almost purchased, but didn’t, and that is Sandbox. At the time of me filming this, the cheapest plot of land is about $12,000, and the market cap of the Sandbox token is about four billion. Now this is an NFT gaming experience, and players with land can monetize that land for players of the game, or you can rent that land out for people to create experiences on that land for people.
The Metaverse Land Rush
The other ways you can make passive income with Sandbox land is you can stake the Sandbox token for a 25% APR, however, you cannot rent the land to be staked. And if you are holding the sandbox token long-term, I think this is a great way to earn interest on your investent that’s already probably appreciating in value. So definitely check that one out. Next up is Axie Infinity, and Axie Infinity is a metaverse where users play games to earn real-life money. And at this time, it has the largest gaming crypto market cap at around $8 billion.
And as of right now, I could not find these on OpenSea, but if you go to the Axie Infinity website, you can see land for sale there. Now NFT gaming is great, and I think it’s probably one of the best areas of crypto right now, but I’m already invested in a few NFT gaming projects. And when it came to the metaverse, I wanted to invest in the actual reality connection experience, which is why I went ahead and I looked at these other two.
This leads me into Decentraland, which I did not purchase a plot of land on Decentraland, but it is the oldest crypto metaverse out there. It started around 2018 or 2019.
And the MANA token in which the metaverse runs on is ranked 31 on CoinMarketCap with a market cap of a little over $4 billion. And this project is centered around the user experience. It has communities of people that have been inside of Decentraland for years at this point. And you can have jobs, you can open up shops. There are people who have jobs inside of the Decentraland getting paid in MANA token.
And you can build a house, there all of these things you can do. And the main reason why I did not invest in Decentraland is because of the price. The cheapest plot of land is around $15,000, and it’s this tiny little plot of land on the outskirts of everything. And you can see the location of your land. Whenever you try and go to buy it, you can zoom in and go to that particular place.
And that leads me into another key factor that I’ve not yet talked about when wanting to buy metaverse land is the location. The saying in real estate is location, location, location, and the same applies here. When I was looking to purchase a piece of metaverse property in whatever land I ended up going in, it needed to be next to something that was really popular or already had something established. So when I was researching, it needs to be on a main road or near a town center, or possibly next to a teleporter, because once everybody kind of gets done exploring, they’re gonna have very popular places that they wanna go.
And they’re not going to just walk from point A to point B, they’re either going to teleport there or travel to that spot.
And I have a friend who Airbnb’s in New York, and you can see this happen there, where he always tries to get a place next to a subway. So I’m thinking of this from the same perspective. And that leads me to the final place where I ended up purchasing my plot of land, and that is Somnium Space. And there are a bunch of reasons why I ended up choosing Somnium Space over the said three projects I just mentioned. Now at the time of me filming this, Somnium Space is the fourth highest traded crypto metaverse project on OpenSea.
However, the Somnium Space project only has a 300 million market cap, which is about 1/20 that the size of Decentraland. And you pair that with the low number of plots that are being offered, I think that the real estate in this space has much room to go up, especially in the next one to two years.
Now as of right now, this is the only metaverse with virtual reality capabilities where you can log in with your Oculus. And I’ve heard of other metaverse worlds have this in the pipeline down the road. And I think it’s a matter of time before they all get there.
But I think having first mover advantage, especially with something like this in this space, is incredibly important. They’re also partnering up with Tesla with this Tesla suit where people can actually feel things inside of the metaverse. And although I don’t know the timeline for that project, I love the aggressive approach and the steps they’re taking to get there.
And the Winklevoss twins have also been announced as advisors. And if you aren’t familiar with them, they are one of the first people who came up with the idea for Facebook, and they are also the founders of my favorite crypto exchange Gemini.
Now I ended up purchasing a medium-sized parcel for just under four Ethereum, which came out to be just under $17,000 at the time of me filming this video. And this was the floor price for that parcel. And I think it’s really important when buying an NFTs to buy the floor price because it will mitigate that risk as much as possible if you’re buying at the lowest possible price that’s being offered at that time. Now this is off of the main road and it’s not too far from the main island, so I think that this is a great location. I tried to find something next to a teleporter, but teleporters cost about $141,000, and they’re not as readily available as you may think.
And my medium-sized parcel is about three times the size that of a small parcel.
And small plots of land rent out for about $900 a year. And medium-sized parcels will rent out from about $1400 to $1600 a year, which is nice passive income. In terms of other ways you can make passive income inside of Somnium Space, that’s really about the only way other than just selling an NFT collection. This is really a long-term hold for me, something that I plan on holding for at least a year, probably a couple of years timeframe.
Now, what do I plan on doing with this land now that I have it, other than just holding it to make money? Well, I have some meetings with some builders inside of the Somnium Space Discord next week, where you can talk with them about building something on your lands, and they will give you quotes on that based on any design that you like. So I’m going to be doing that, and ideally, what I would like to do is for the YouTube community is have meetups maybe once a month for people that are not only excited about the metaverse, but also about making money online.
And I think this could be something that content creators use to even further connect with their audience. I don’t know if that’ll pan out or not, but I think it would be really cool.
Now, if you are interested in investing in the metaverse, I think a great place to start is nonfungible.com/market. And you can see so many stats on these different metaverse NFTs, such as highest prices that have sold in the last 30, 60, 90 days. You can see average sale points, community sizes, and so much more information. And that was a stable of a place I really started at.
And as I promised I would answer, how do you get land in the metaverse for free? And this can be done by finding new projects that will be selling land soon and infiltrating that community, whether it be on Twitter or Discord. And many times, these community members will be given land for free, and if not given land for free, they’ll be offered it for sale first, usually at a discount.
And this could make you tens if not hundreds of thousands of dollars in the future. So it’s one of those things where it might be worth sacrificing the time for.
And this makes so much sense because what’s a better way to get people that are already excited about a project even more invested to stay for life, because that’s what they’re looking for. And that’s to give them land, give them a reason to stay. And even if you can’t afford something right now, I would not be surprised if you see these joint NFT ventures, if they don’t exist already, where people can invest into a real estate fund and their funds collectively go to a couple of properties and then the investors of that NFT reap those passive rewards. So I would definitely consider researching that as well.
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