Metaverse: In Decentraland, a virtual real estate plot sells for a record $2.4 million
According to the buyer crypto investor Tokens.com and Decentraland, a piece of virtual real estate in the online world called Decentraland sold for a record $2.4 million in cryptocurrency.
Users can buy land, visit buildings, walk around, and meet people as avatars in Decentraland, which is also known as a "metaverse."
As a result of the pandemic, people have spent more time online this year, and such environments have grown in popularity.
Last month, when Facebook changed its name to Meta to reflect its focus on developing virtual reality products for the metaverse, it sparked a surge in interest.
Decentraland is a type of metaverse that makes use of blockchain technology. Non-fungible tokens (NFTs), a type of crypto asset, are used to purchase land and other items in Decentraland.
Crypto enthusiasts use Decentraland's cryptocurrency, MANA, to buy land there as a speculative investment.
According to a Decentraland spokesman and a statement from Tokens.com, a subsidiary of Tokens.com called the Metaverse Group purchased a piece of real estate for 618,000 MANA on Monday, which was around $2,428,740 at the time.
The land purchase was also recorded on the NFT marketplace OpenSea, according to Reuters.
It was the most expensive purchase of virtual real estate on the platform, according to Decentraland.
The land is located in Decentraland's "Fashion Street" area, and Tokens.com stated that it will be used to host digital fashion events and sell virtual clothing for avatars.
It is made up of 116 smaller parcels, each measuring 52.5 square feet, for a total land area of 6,090 virtual square feet.
Tokens.com CEO Andrew Kiguel said the assets would complement Metaverse Group's existing real estate holdings.
A virtual plot of land in Decentraland sold for 1,295,000 MANA, or $913,228 at the time, in June. The buyers constructed a virtual shopping mall to sell digital clothing, but Reuters has visited the site several times since and has yet to see any customers.
MANA is a highly volatile compound. According to Coinbase, it has increased by around 400 percent this month, with a spike following Facebook's name change.