Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
According to Cuban, there is no scarcity of land in the metaverse as the people can create as much as they want in the virtual world.
American billionaire and television personality Mark Cuban, whose net worth is estimated at $4.7 billion, believes that buying land in Metaverse is the dumbest decision one can make. Dissing people’s precedence to buy land in the metaverse, Cuban said that the real-estate business in the virtual universe makes matters worse.
Metaverse, which is a virtual world where people can make their virtual avatars to socialize and play, is Mark Zuckerberg‘s brainchild and as stated by him, ‘is the future of technology and his trillion dollar firm, Facebook’. Mark’s statements have, however, come as shock to many, as the hype engulfing the Metaverse is on the rise.
A year ago, Facebook revised its name to Meta, giving way to new ideas and enthusiasm about the wide-ranging opportunities opening up with the virtual world on the Metaverse. This instant fame resulted in many celebrities and crypto firms opting to buy land off the digital universe via the metaverse platforms like Sandbox and Decentraland.
Companies like these allow buyers to purchase land as a Non-Fungible Token, which can eventually be built with digital infrastructure and events. They can also be put on the market again and sold off on a secondary marketplace, like the American NFT marketplace OpenSea. Many firms have followed the precedent and purchased blocks of virtual land, such as Warner Music Group, Samsung, Adidas, etc.
According to Cuban, there is no scarcity of land in the metaverse as the people can create as much as they want in the virtual world. This way, Metaverse’s most prominent assertion, that scarcity will increase the cost of these digital plots, falls flat. Mark believes that the land is not even as useful as a URL.
Even though he is an investor in Yuga Labs, the famous blockchain technology company that makes NFTs and digital collectibles, Cuban did not shy away from claiming that he was not pleased with the organization’s plot sale. Yuga Labs recently assisted in the collection of over $320 million from a sale of Ethereum-based Otherdeeds NFTs, which ended up becoming the largest sale of its kind.
According to Cuban, it is not so intelligent to do real estate on virtual land. He said that even though the Yuga land sale created a lot of money for the organizers, it wasn’t based on anything of value or utility.
Despite the hype, the sale figures for Metaverse have been plunging since the last year. At its peak, the figures presented for land sales across Sandbox, Decentraland, and Voxels had crossed $60 million. However, the August data for 2022 shows that the volume of sales has gone down to $150,000. The average price for the purchase of a plot has depleted from 81% to $5,930 in the last week. A year ago, the price was somewhere around $32,191.