Justin Bieber in the Metaverse
No one to go to a concert with? Visit a digital concert like Justin Bieber’s. Wanting to get some retail therapy without paying the big bucks at department stores? Have a “Pretty Woman” moment shopping down Rodeo Drive, collecting clothes and other items for your avatars. Big fashion houses like Louis Vuitton have launched their own games and collectable items in virtual worlds.
Online multiplayer worlds have been around for years. Think World of Warcraft, Fortnite, Minecraft, or The Sims. These worlds have hundreds of millions of players and their own economies. The metaverse is a community of virtual worlds where users can work, play, relax, transact, and socialize. The ‘Big Four’ players are Sandbox, Decentraland, Cryptovoxels and Somnium.
With a whopping 2.95 billion gamers worldwide, and the average American gamer now being 35-44 years old, industry titans like JP Morgan, Microsoft, Atari, and Snoop Dogg are asking: how do we capture and capitalize on their attention and entertainment needs?
Investors can get in on the action by visiting trading platforms like OpenSea to buy land and houses using virtual currencies. While the gains can be incredible, just be prepared to lose everything, economists warn.
The value of the metaverse property is determined by the amount of traffic generally present and the improvements digitally built to entertain and advertise to guests. Staying true to reality, it’s still about location, location, location! Celebrities are getting in on the action, and so people want to be next to them, like Snoop Dogg’s new neighbor who got land for $450,000 next to his NFT house.
The metaverse real estate market is growing quickly. Last year, the average price of a land parcel doubled from $6,000 to $12,000. Total sales breached $500 million and the market is projected to grow at a 31% annual compound rate from 2022 to 2028. What do you think, is this your chance to get into the next big thing?
What do you think, is this your chance to get into the next big thing?
NOTES
What is the Metaverse?
Online multiplayer worlds have been around for years. Think World of Warcraft, Fortnite, Minecraft, or The Sims. These worlds have hundreds of millions of players and their own economies. The metaverse is a community of virtual worlds where users can work, play, relax, transact, and socialize.
The ‘Big Four’ world’s people are competing for real estate in are Sandbox, Decentraland, Cryptovoxels and Somnium.
Who is the target audience?
There are 2.95 Billion gamers worldwide and the average age of the American gamer is 35-44 years old.
These people have money – Millennials are building wealth
They want somewhere to shop that’s as exciting as Rodeo Drive, without the drive
Millenials and Gen Z.
What new technologies have enabled its growth?
The convergence of cheap and powerful VR and AR headsets, blockchain’s monetization, and democratic voting techniques, has unlocked a new digital economy.
Covid-19 accelerated the digitization of our lives
How fast is it growing?
“The average price of a parcel of land doubled in a six-month window in 2021. It jumped from $6,000 in June to $12,000 by December across the four main Web 3.0 metaverses.”
“Sales of real estate in the metaverse topped $500 million last year and could double this year, according to investors and analytics firms.
the metaverse real estate market is expected to grow at a compound annual rate of 31% a year from 2022 to 2028.
What does the economy look like ?
People will soon be able to take out credit and mortgages to finance their digital land purchases, using other digital assets as collateral.
How important is location, location, location?
Areas with heavy traffic are more valuable, as companies can show ads or present experiences to a larger audience.
Someone paid $450,000 to be Snoop Dogg’s neighbor in Sandbox.
How risky is it?
Many consider it to be incredibly risky, where people should only invest money they are prepared to lose. But the gains can be incredible.
The metaverse is a new competitive landscape for real estate development
The main players are Decentraland, The Sandbox
The competition is for people’s attention
Capturing attention allows companies to sell ads or products to a captivated audience
Companies will create brand experiences – rides rather than reports
NFTs allow for unique ownership of digital assets
JP Morgan has invested in Decentraland
