The Metaverse has some pricey real estate.
According to Markets Insider:
The head of Tokens.com foresees investment in virtual land paying off big as companies ramp up product ads and events in the growing metaverse ecosystem, according to USA Today.
Andrew Kiguel, CEO of crypto-asset investment firm Tokens.com, estimated his metaverse portfolio is valued at 10 times more than his purchase price, USA Today said in a report published Wednesday.
“It’s all about the location,” he told the newspaper, saying that land in the core of a virtual downtown is key. “The more visitors who come, the more valuable the land, and the more a retailer and advertisers will be willing to spend to reach those people.”
Toronto-based Tokens.com acquired a 50% stake in Metaverse Group in October for $1.7 million, then completed an additional investment last week to give it a 67% ownership stock in the firm.
The deal comes after Metaverse Group last month made a then-record $2.43 million purchase of parcels in the Decentraland metaverse platform.
Kiguel has high hopes for that virtual plot of land.
“I think we’re going to see a quick appreciation and monetize renting that land and space very soon,” he told USA Today, adding that the plan is to develop the virtual area into a destination for luxury brands.
Luxury fashion houses such as Gucci and Louis Vuitton already occupy space in the metaverse through NFTs, Kiguel noted.
Metaverse Group CEO Lorne Sugarman told Insider in November that the Decentraland property purchase, which was in its Fashion District, provides an early foothold in upscale commercial opportunities in the metaverse.
“We think the Fashion District purchase is like buying on Fifth Avenue back in the 1800s … or the creation of Rodeo Drive,” he said, referring to the high-end shopping areas in Manhattan and Beverly Hills.
We’re HustleTweeting about the Metaverse, and you’re more than welcome to join the conversation on the Hustle Twitter HERE … on our ridiculously sensational Instagram HERE … or on our Facebook page HERE!
