In this report, we examine the opinions of Joel John, the investor of the LedgerPrime veure fund, about the factors influencing the pricing of lands in Metaverse. John meions 5 importa factors in determining the price of Metaversi lands.
According to Cryptonews, the price of real estate in Metaverse is determined based on the number of requests for it. In the following report, an investme fund manager explains how metaverse land can be turned io an income generating machine for its owners.
Also read: Developme of metaverse strategy; Recommendations of JP Morgan experts for businesses in this field
According to John, the problem is:
What does it mean to be a neighbor in Metaverse? Why does it matter at all? What would happen if Snoop Dogg had multiple Earths in the Metaverse? Will the price of the neighbors of all those lands go up? To be honest, no one knows the answers to these questions.
John goes on to explain that, unlike tokens, Metaverse plots cannot usually be broken down io smaller plots based on clie capital, and buying these plots often requires significa capital. For example, the average price of a piece of land in Sandbox is about $10,399 and in Deceraland is about $11,954.
To understand the concept of these prices, we must first understand what the meaning of earth is in Metaverse. According to John, the concept of Earth is nothing but a space where you can digitally express whatever you wa.
According to John, the 5 main factors that can affect the value of a Metaverse plot of land are:
- Number of people eering (Overall Footfall)
- Memetic proximity
- Geospatial coext
- Financialization
- Art
The number of people eering is the first factor that refers to the number of people who will encouer that piece of digital land. The same concept exists in the physical world. For example, non-digital commercial real estate will be more expensive in high-traffic areas.
We have named the second factor influencing the price of Metaversi lands as memetic proximity. This concept can be equated with the ability to get close to a person or thing in the metaverse that attracts a lot of atteion.
The geographical coext refers to the fact that people can gain fame and their land becomes more valuable due to the similarity of their property with the property of a well-known person or by owning a piece of digital land next to the digital land of a famous person or company.
Due to the mutual and increasing relationship between finance and Metaverse, financialization will also be the third factor affecting land prices in Metaverse. Many projects related to the financial world take advaage of Metaverse’s digital lands in their investme strategies. As a result, the lands that are included in the strategy of these companies, for example, have the ability to be divided or can be reed, will have more value.
Finally, land value in the metaverse is always influenced by the game design in which the lands exist. If a game’s ierior art and graphics are stunning, it’s likely that the game developers will auction off the lands, and then the land owners can charge other users for using or traversing their land.
Some oppones of lands being valuable in the metaverse believe that given that lands can be created indefinitely in the metaverse, their value will not increase much. John considers these people’s argumes to be illogical.
This logic is like saying that websites can’t get too valuable; Because there is no limit to creating couless websites.
John writes about it:
Metaverse lands have high barriers to ery and even when a group of people owns them, they prefer to develop them rather than think of selling them immediately and exchanging them for cash.
In John’s opinion, currely, metaverses governed by the model of Deceralized Autonomous Organizations (DAOs) are the epitome of a deceralized Iernet, with true user ownership and a dash of madness.
Also read: Kocoin Report: DeFi Apps Move to Use DAOs to Cope with Regulation
John says about this:
In my opinion, the future ahead of us is a kind of redesign of the past.
