When venturing into buying real estate in the metaverse, it can feel like stepping off of a cliff into nothing. There's no tangible land, no sea, no sky, no molten core, no gravity holding it all together. But yet, it's something -- something that people are starting to really believe has a value. That's all it really takes, you know. The only reason we value anything is because we've collectively decided that the thing in question is important to our existence.
And although virtual real estate absolutely follows many of the same principles that real-world real estate does, there's one element that we can't forget when we're investing in it -- your favorite platform isn't the only game in town, unlike real estate on planet Earth, where there's a fixed supply of dirt and grass.
There is a lot of potential in the metaverse, but some platforms currently look like much better investments than others. I have a few favorites, but if I could only pick one, it would be Decentraland (MANA 0.89%). Here are three reasons why.
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1. Decentraland has a long history that shows steady growth
Real-world real estate investing isn't sexy, and metaverse real estate investing isn't either. It's exciting, it's groundbreaking, it's interesting -- but no, it's not sexy. If your real estate investing starts to feel too much like a trip to Las Vegas, you need to step away from the table.
Decentraland launched in 2017 and opened fully to the public in early 2020. In that time, as of Jan. 19, 2022, Non-Fungible.com reports 133,878 NFT real estate transactions have been completed in the virtual world, worth $164.8 million. This doesn't include transactions that have taken place within the platform's marketplace or on less transparent third-party sales platforms, of which there are several.
Even as far back as summer 2018, Bloomberg was reporting on virtual land sales in Decentraland's commercial districts. A credit network called Ripio.com paid $150,000 for a plot back then, and it wasn't even the biggest sale that year. At that time, MANA, the crypto currency of Decentraland, was worth about 12 cents per coin. As of Jan. 21, 2022, and despite a rough week for the markets as a whole, a MANA coin is worth $2.21.
2. The denizens of Decentraland are invested in its future
It's true that every metaverse platform has some users who are interested in seeing their platform grow. However, the members of Decentraland are very invested in its growth; so much so that its events page is just full of public events that anyone can attend, from art gallery openings to musical performances and even charity events. Casino and game nights organized by various groups can really draw in the crowds, and meditation workshops help everybody find a little zen. Oh, and don't forget the group therapy sessions, pet shows, and special-interest meetups.
My point is that there's a lot of stuff going on in Decentraland, and that's really important to its future. Because it's not "just a game," but a community of actual people with real interests who are designing their platform's future, it's important for them to be emotionally invested in it. Public events can also give new visitors a taste of the culture of Decentraland and allow them to meet people who spend time on the platform every day.
Online platforms don't die because they're not good ideas; they die because users lose interest (MySpace, anyone?). Decentraland's denizens and leadership are creating lots of ways for users to engage with the wider population, constantly raising the stakes for the platform and engaging visitors with new, interesting ideas again and again.
3. Brands are already planting their flags in big ways
Look, I know it sounds a little sheepie to say, "Well, there are lots of commercial companies there now, so it's definitely a good idea," but when a platform like Decentraland ends up on the radar of brands as diverse as accounting firm Prager Metis, Samsung, and Coca-Cola, that should say something to investors.
Multinational brands are a bit like cockroaches. If you see one, chances are good that there are many more hiding in the walls. And we're finding out that's more true, with new brands announcing their claims in Decentraland almost daily.
Although some people have proclaimed that the introduction of big corporations into the metaverse will spell the end of it, the truth is that this corporate involvement is how it survives. Without someone putting up money for projects no small company (or community group) can afford to do alone, failure to launch is highly likely. These big players have vested interests in their stakes in Decentraland succeeding, and they'll be advertising and bringing awareness to the metaverse.
There's no such thing as a sure thing in the metaverse
I want to make it absolutely clear that there is no sure thing in the metaverse, but if you're looking for as close as you can get, Decentraland is a good bet. It's an established platform that's still heavily invested in bringing in new blood and is courting big brands. And its users are also extremely interested in seeing their platform succeed, to the point that they spend their own time putting on events for the public that aren't necessarily going to bring in any kind of money.
Decentraland has its own thriving economy, culture, and story, the bedrocks of any civilization. Sure, it doesn't look like what we're used to, but it's literally a world inside of a computer that's emerging from nothing and turning into something that anyone can access from any place on the planet.
If you've ever read anything I've written on this subject, you know I'm all for the unsexy investments, and Decentraland is both intriguing and extremely dull -- exactly the way a real estate investment should be. This is the place to buy real estate in the metaverse if you're looking for a long-term buy-and-hold situation, because it shows all the signs that it's going to be there for a while.
