This $2.4M virtual land deal is largest ever for digital real estate

6,000-square-foot estate in Decentraland’s Fashion District will be developed to stage fashion shows

National /
Nov.November 24, 2021 11:00 AM
Decentraland
Decentraland

The burgeoning digital real estate market is heating up.

A virtual “estate” in Decentraland, one of the two dominant metaverses, changed hands on Nov. 23 for a record sum — the equivalent of $2.4 million at the time.

Tokens.com Corp., via its subsidiary Metaverse Group, paid 618,000 MANA — the native Decentraland cryptocurrency — for 116 parcels comprising some 6,090 square feet in the virtual world.

The estate, in Decentraland’s Fashion District, is now worth much more, thanks to a 35% increase in the value of MANA overnight. Cryptocurrencies are notoriously volatile, but the market overall has trended up since the summer. MANA has increased in dollar value by more than 65 percent over the last week, and by more than 550 percent over the last month, according to crypto marketplace Coinbase.

Decentraland, like other metaverses, is still largely undeveloped. But investor interest in the metaverse has grown in recent months as retail, gaming and media companies like Facebook have staked claims in virtual worlds. As the number of participants has multiplied, value has coalesced around estates and other plots located near highly-trafficked public squares and emerging commercial enterprises like casinos.

Speculators say digital real estate can serve a variety of purposes, from retail showrooms, to event spaces and virtual offices.

Decentraland
Decentraland

Toronto-based Tokens.com, a publicly traded company that facilitates investment in digital assets, plans to develop the Decentraland estate for staging fashion shows with clothing brands, the company said in a release. Luxury brands such as Louis Vuitton, Gucci and Burberry have already entered the metaverse through designer NFTs — unique digital assets secured by blockchain technology.

In September, Tokens.com paid roughly $2 million for a 50% stake in a portfolio of digital real estate owned by Metaverse Group, with plans to spin it off as the world’s first metaverse REIT.

Tokens.com is led by co-founder and CEO Andrew Kiguel, a former real estate investment banker.

The Sandbox, another dominant metaverse oriented toward gaming, is set to launch Nov. 29 after four years in development. SAND, the native currency of the virtual world, is up more than 800% in the last month.









      Related Articles

      arrow_forward_ios
      Dropbox, Golden State Warriors appealing SF property assessments
      Dropbox, Golden State Warriors appealing SF property assessments
      Dropbox, Golden State Warriors appealing SF property assessments
      San Francisco’s Top 10 priciest home listings
      San Francisco’s Top 10 priciest home listings
      San Francisco’s Top 10 priciest home listings
      Duke Realty's Drew Hess and the Oakland site (LoopNet, Duke)
      Duke Realty plans 428K sf Oakland project at site of former glass factory
      Duke Realty plans 428K sf Oakland project at site of former glass factory
      Oakland A’s make offer on possible Las Vegas stadium site
      Oakland A’s make offer on possible Las Vegas stadium site
      Oakland A’s make offer on possible Las Vegas stadium site
      San Francisco’s Union Square and Nordstrom store at 1200 Broadway Plaza in Walnut Creek (Wikimedia, Google Maps)
      Thieves target Nordstrom, other stores in four Bay Area cities in weekend spree
      Thieves target Nordstrom, other stores in four Bay Area cities in weekend spree
      California’s Inland Empire lures more residents as more flee pricey coastal cities
      California’s Inland Empire lures more residents as more flee pricey coastal cities
      California’s Inland Empire lures more residents as more flee pricey coastal cities
      U.S. Senator Dianne Feinstein and the Lake Tahoe property (Getty, Realtor.com via Katrine Watson)
      Dianne Feinstein finds buyer for Lake Tahoe compound after $10M price chop
      Dianne Feinstein finds buyer for Lake Tahoe compound after $10M price chop
      Ellis Partners, Intercontinental submit early-stage plans for Oakland office tower
      Ellis Partners, Intercontinental submit early-stage plans for Oakland office tower
      Ellis Partners, Intercontinental submit early-stage plans for Oakland office tower
      arrow_forward_ios

      The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

      Loading...