A Strip of Virtual ‘Land’ NFTs Just Sold for $2.4 Million

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In yet another example of virtual items costing sky-high costs for no noticeable factor, a financial investment company simply discarded approximately $2.4 million on a huge plot of… virtual land. Isn’t the future excellent?!

On Tuesday, the Canadian financial investment company Tokens.com revealed that it had actually bought 116 parcels of virtual land from a business called Decentraland, which costs itself as “the first-ever virtual world [that’s] owned by its users.” It may sound near-identical to the virtual worlds of days of yore—particularly, Second Life—however don’t be deceived. As the business notes, “unlike other virtual worlds such as Second Life, it is not controlled by a centralized organization or company.” Okay, guy.

The Tokens.com financial investment came out to 618,000 MANA, the Etherium-based token that Decentraland utilizes as its in-world currency. Translating that into U.S. dollars, this company invested $2,428,740 overall on the deal, which Token’s release notes is the biggest deal “of its kind” to date.

For that mega-investment, the company got 116 virtual land “parcels,” which amounts to about 6,090 square feet of land—a little bigger than the size of your typical basketball course. For referral, while costs for IRL plots of land differ extremely by state, some price quotes put the typical cost per square foot in the U.S. at around $123, implying that the real-world equivalent of this purchase would have cost about $750,000, rather of… $2.4 million.

But these aren’t simply any parcels, according to the release. This plot is smack-dab “in the heart of the Fashion Street district within Decentraland, and “will be developed to facilitate fashion shows and commerce within the exploding digital fashion industry.”

In other words: This basketball-sized plot of land will be developed into a digital shopping mall, at a time when real, real-world shopping malls and retail locations across the country are collapsing, thanks in big part to the rise of e-commerce shepherded by the continuous covid-19 pandemic. Meanwhile, significant brand names are going all-in on the NFT pattern, with mega-brands like Gucci, Burberry, and Louis Vutton presenting their own non-fungible items over current months. It was just a matter of time prior to somebody presented a digital style district bursting with digital shopping malls to display these styles.