Auction house NFT loses $1.25 million on Metaverse property

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Portion, which dubs itself the “first online marketplace” for NFTs, announced the purchase of $1.25 million of land from Decentraland, the 3D virtual world where users can purchase virtual real estate on the platform through the MANA cryptocurrency.

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“Like Manhattan’s Fifth Avenue, high-traffic areas serve as a prime thoroughfare for world-renowned luxury brands, and the future Metaverse is building its own neighborhoods,” the company said in a blog post on its site. Web at the beginning of the month. The purchase was finalized for 425,000 MANA, which equaled approximately $1,250,000 at the time of purchase.

This isn’t Portion’s first step into the metaverse, as the company previously received free land in the Decentraland Arts District. Last July, he launched a seven-story virtual museum in Decentraland, showcasing a wide range of NFT artwork, according to the post.

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“We took this giant leap for a mega lot at Decentraland because the artists asked us to build something, a space to bring NFTs to life in a new way,” the CEO and founder of Portion told Insider. , Jason Rosenstein.

Portion chose its 52-plot land in Decentraland because it was next to a road and a large plaza where other brands were buying land, Rosenstein told Insider. “Also, you want to be as close to the center of Decentraland as possible,” he said.

Metaverse virtual real estate maintains the impressive traction it gained in 2021 and continues to grow at a rapid rate – both in terms of interest and price.

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Indeed, the market opportunity to bring any number of metaverses to life can be worth more than $1 trillion in annual revenue, according to a Grayscale report. The asset management firm estimates that revenue from virtual game worlds could reach $400 billion in 2025, up from $180 billion in 2020.

Rosenstein told Insider that Portion has partnered with companies that want to use its virtual land to sell digital wearables for avatars.

“Buying land in the Metaverse is like buying land in Manhattan in 1800,” he told Insider. “No one really knows too much. But just make an educated guess and give it a try.

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About the Author

Yael Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She has also worked as a VP/Senior Content Writer for major New York-based financial firms, including New York Life and MSCI. Yael is now independent and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare”, with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in journalism from New York University and one in Russian studies from Toulouse-Jean Jaurès University, France.