The Metaverse has grown immensely since the beginning of the previous bull market. According to CoinGecko, the price aggregator website, there are over 107 metaverse projects currently active in the blockchain space. Apart from blockchain games such as Axie Infinity and Floki Inu, Metaverse also touches on real estate projects like Decentraland and Upland.
However, does the metaverse have a future in real estate and business? Let’s find out.
Land in the Metaverse
Unlike physical land, metaverse real estate is not scarce and its value comes from how physical real estate is. Websites and domain names are sorts of virtual real estate and their value exists in the amount of attention these sites receive.
Imagine a virtual shopping district with virtual shops where companies could sell their physical products. If marketed well, this would add immense value to brands who want to sell and advertise to their consumers. In the same way, advertisers compete for high ranking on Google search results, they may soon be competing for prime locations in virtual shopping.
Corporates and Metaverse Real Estate
Companies are building their own virtual worlds where their employees can collaborate. For instance in commercial real estate, digital twins of physical office buildings are made with the intention of them being a place where remote employees can meet.
Some businesses benefit from renting out property in the metaverse on a short-term basis instead of purchasing it entirely. Others such as Lorne Sugarman’s Metaverse Group rent virtual land and have a team of developers tasked to build on the visions of tenants.
The Australian Open rented land to host a festival concurrently with the annual tennis tournament. The rented space had digital stadiums where fans could interact and watch matches together.
Samsung also built a virtual version of its flagship New York store where guests were allowed to test products. Adidas on the other hand owns property in the Sandbox, where it sells digital athletic gear as NFTs.
Instead of ticket sales as the return of investment (RoI), virtual concert venues can keep users returning to the venue for marketing, design, and development. Event organizers can charge subscription fees for venues where members get discounts on tickets to concerts held. Artists and developers could be employed to design new experiences for the users to keep them coming back.
Other ways to make money through virtual concerts could be through sponsorships, selling virtual merchandise for avatars to wear, and special effects to enhance the experience of concert-goers.
As virtual representations continue to become more lifelike, virtual concerts maybe even more engaging than actual concerts.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.