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Virtual real estate plot sells for record $2.4 million

Virtual real estate plot sells for record $2.4 million
Virtual real estate plot sells for record $2.4 million   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p>By Elizabeth Howcroft</p> <p><span class="caps">LONDON</span> – A patch of virtual real estate in the online world Decentraland sold for a record $2.4 million worth of cryptocurrency, the buyer crypto investor Tokens.com and Decentraland said on Tuesday.</p> <p>Decentraland is an online environment – also called a “metaverse” – where users can buy land, visit buildings, walk around and meet people as avatars.</p> <p>Such environments have grown in popularity https://www.reuters.com/business/metaverse-bet-crypto-rich-investors-snap-up-virtual-real-estate-2021-04-19 this year, as the pandemic caused people to spend more time online.</p> <p>Interest surged last month when Facebook changed its name to Meta to reflect its focus on developing virtual reality products for the metaverse.</p> <p>Decentraland is a specific type of metaverse that uses blockchain. Land and other items in Decentraland are sold in the form of non-fungible tokens (<span class="caps">NFT</span>s), a kind of crypto asset. </p> <p>Crypto enthusiasts buy land there as a speculative investment, using Decentraland’s cryptocurrency, <span class="caps">MANA</span>.</p> <p>A subsidiary of Tokens.com, called the Metaverse Group, bought a patch of real estate for 618,000 <span class="caps">MANA</span> on Monday, which was around $2,428,740 at the time, a Decentraland spokesman and a statement by Tokens.com said.</p> <p>Reuters also saw the land’s purchase recorded on the <span class="caps">NFT</span> marketplace OpenSea.</p> <p>Decentraland said it was the most expensive purchase of a plot of virtual real estate on the platform.</p> <p>The land is in the “Fashion Street” area of Decentraland’s map and Tokens.com said it would be used to host digital fashion events and sell virtual clothing for avatars.</p> <p>It is made of 116 smaller parcels, measuring 52.5 square feet each, making the land 6,090 virtual square feet in size.</p> <p>Andrew Kiguel, <span class="caps">CEO</span> of Tokens.com, said the assets would complement the real estate already held by Metaverse Group.</p> <p>In June, a plot of virtual land in Decentraland sold for 1,295,000 <span class="caps">MANA</span>, worth $913,228 at the time. The buyers built a virtual shopping centre to sell digital clothing, but Reuters has visited this site multiple times since and not seen any shoppers.</p> <p><span class="caps">MANA</span> is highly volatile. It has gained around 400% this month according to Coinbase, spiking after Facebook’s name change.</p> <p/> </div>