--- title: "In Further Evidence of Deranged Financial Bubble, Investors Are Paying Millions for Virtual Real Estate" description: "The metaverse has already proven to be cash cows for investors looking to make millions off of literally nothing." date: "2022-01-13" modified: "2022-01-13" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/the-byte/financial-bubble-investors-metaverse" categories: - "Blockchain" - "Future Society" tags: - "blockchain" - "metaverse" - "the digest" - "web3" --- # In Further Evidence of Deranged Financial Bubble, Investors Are Paying Millions for Virtual Real Estate ![The metaverse has already proven to be cash cows for investors looking to make millions off of literally nothing.]() *\Image: Decentraland\* ## Virtual Real Estate Though they're still little more than newfangled versions of Second Life, the current metaverses out there like Decentraland and The Sandbox have already proven to be cash cows for investors looking to make millions — to many, a bubble that could be getting ready to burst. As [*CNBC* reports](), the virtual land grab is reaching outrageous new heights in 2022, with some investors paying millions of dollars for fake "land" in hopes of "developing" it into something that is worth more than what they originally spent. Facebook-now-known-as-Meta only accelerated the trend after [announcing its own foray]() into virtual world creation — a more socially focused VR experience. It also doesn't help that many of the current experiences out there remain [disjointed and glitchy](). ## Digital Land Prices are skyrocketing right now, rising "400 percent to 500 percent in the last few months," Tokens.com CEO Andrew Kiguel told *CNBC*. His company recently spent [upwards of $2.5 million]() on a patch of "land" in the crypto-based metaverse Decentraland, which operates on its own MANA currency. That wasn't even the most expensive metaverse land purchase in recent months, either — that honor goes to "virtual real estate" firm Republic Realm, which spent $4.3 million to buy a "[plot of land]()" on The Sandbox metaverse built by classic video game company Atari. For reference, this is what The Sandbox looks like: https://twitter.com/TheSandboxGame/status/1479513378867531780 ## Taking the Hit Experts are already warning would-be metaverse investors not to invest unless they're able to take the hit. "I would not put money into this that I didn’t care about losing," Mark Stapp, real estate theory professor at the Arizona State University, told *CNBC*. "I certainly wouldn't." "If it continues the way it’s going, it is most likely going to be a bubble," he argued. "You’re buying something that isn't tied to reality." With assets as seemingly overvalued as these, two obvious questions emerge: who is getting rich off of metaverse land sales, and is this all just [a new way to launder money]()? **READ MORE:** [Investors are paying millions for virtual land in the metaverse]() \[*CNBC*\] **More on the metaverse:** [*Facebook Hosted Three Huge Concerts in the Metaverse and They Seriously Flopped*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()