Property crisis in the Metaverse as virtual land-grab turns sour

Blockchain-based metaverses are suffering their own housing crisis, with virtual land values plummeting due to fading user interest, after a speculative boom left digital environments empty of things for players to do.for people around the world eager to connect and develop businesses and games online in 2021 and in early 2022, but early property prospectors have since been hit by a 90 per cent fall in prices over the past 14 months.

But in the past 14 months land values in these nascent environments have tumbled. The average price of land sold across Decentraland has fallen to $US1250, with Sandbox’s average sale price dropping to $US916 as of May 8 this year, according toSophisticated technology investors have baulked at the speculators who have bought up virtual land plots but failed to develop anything there.

“All these metaverse speculators rushed to buy land in these virtual worlds, but the problem is no one is building anything on the land. They’re just waiting for that metaverse to take off without doing anything themselves. From the outside it’s been a pretty terrible investment.”Decentraland bills itself as a browser-based platform where users can build shops, amphitheatres, and other businesses across a series of “suburbs”. Investors buy MANA tokens to purchase land in Decentraland.

But the fast-growing and functional tools evolving inside centralised games such as Roblox and Fortnite have better caught the attention of investors and players, who can generate their own revenue through their in-game creations.As it stands, Roblox creators and developers earn around 29¢ for every dollar spent inside the game through the in-game currency Robux.

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