Virtual real estate is on a tear.
In the online world known as Descentraland, the virtual land plot sold for $ 2.43 million this week, more than double the previous record for virtual real estate prices.
Decentraland is a popular online environment where users can exchange cryptocurrencies for land and buildings. Users can walk around the digital world and meet other users through customizable avatars.
Descentraland exploded in popularity after Facebook changed its corporate name to Meta last month, reflecting the company’s commitment to grow its offerings, known as Metaverse, the latest corporate buzzword that some executives hope will be the next iteration. Internet.
The Metaverse Group, a subsidiary of Tokens.com, has purchased the 116 parcel estate in the heart of Descentraland’s “Fashion Street District” for 618,000 cryptocurrencies in the digital world.
That amounted to $ 2.43 million at the time of the purchase, the Metaverse Group said in a press release.
The company says it will use its new virtual real estate to support its expansion into the digital fashion industry.
“Fashion is the next big area for growth in the metaverse,” Sam Hamilton, head of content at the Descentraland Foundation, said in a statement.
“So it’s timely and very exciting. Metaverse Group has made such a definitive commitment with the purchase of this land in the heart of Descentraland’s fashion precinct.”
Various luxury fashion houses, including Gucci Burberry and Louis Vuitton, flirt with so-called metaverse and release NFTs or non-fungible tokens, which is part of the trend.
Other retailers, such as Nike, have been clear about their commitment to capitalize on the Metaverse movement, though it is not yet clear how it will look.
This week’s multimillion-dollar purchase of digital real estate surpasses the previous record set in June, when the real estate investment firm paid more than $ 913,000 for property in Descentraland.