Mark CubanThe billionaire investor and owner of the Dallas Mavericks recently voiced his negative opinion about certain types of real estate.
In an interview with the Altcoin Daily YouTube channel, Cuban described people who buy property on metaverse platforms such as Sandbox and Decenterland as “the dumbest people I’ve ever seen.”
Cuban said the Metaverse Real Estate concept could be a success once a community is formed, but there is no value based on traditional real estate approaches before the concept is proven. This billionaire sentiment comes at a time when the rising hype around the digital universe seems to be waning.
The “Shark Tank” star owns physical properties, including a Dallas mansion he purchased in 1999 for $13 million and a $19 million mansion in Laguna Beach, California he purchased in 2018.
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For those who don’t know, metaverse platforms like Sandbox allow investors to buy land in the form of NFTs. NFTs can be developed with virtual buildings and experiences or resold on secondary markets like NFT exchange OpenSea.
However, sandbox land is down 81.82% from its January 2022 peak, according to OpenSea. At its peak, he had $9.5 million in trading volume, but at the time of writing it was just $202,986.
Virtual land could be a viable investment for brands like Adidas and Nike that want to build social experiences, but it is a riskier crypto asset similar to investing in real estate.
Still an avid proponent of cryptocurrencies and other Web 3 technologies, Cuban says the metaverse is still the buzzword above all else.
At the moment, Metaverse real estate isn’t doing well, but the idea of the Metaverse as a new virtual world where people can shop, hang out, and play with others is still of interest to many. .
Companies such as Sandbox and Decentraland sell digital plots of land to users. Users can buy, sell, or lease that space or use it to build virtual structures.
In theory, what gives land value to the metaverse are two principles of physical real estate: scarcity and location. However, this may not be the case in the metaverse lands, as scarcity cannot be artificially introduced.
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