Metaverse Land Rush Is A Deception

In the future, high-end retailers may have retail locations in countries where users can view their stores as they pass through a real store. But among buggy programs, limited users, and machines that allow users to buy and sell slurs and complex control systems that can prevent them, the problems seem contradictory. these platforms to build them.

And yet investors seem to believe that there is money to be made here.


Decentraland’s main goal is that users can come to “buy space” in the game, but the way to do this is complicated. Users cannot purchase landmarks directly with ordinary dollars. Most can never be bought with ether, the popular bitcoin method. Instead, like many crypto projects, Decentraland has its own currency called mana that rests on a sidechain on Ethereum.

Sidechains are complex, but in simple terms, they allow projects to download tokens or data to a different blockchain that can have a variety of forms (and often cheaper) than a large chain. In theory, it means that although Decentraland is derived from ether, the value of mana can be much more stable than ether.

In the meantime, a The cheapest place in Decentraland sells about 4,000 manna, which at the time of writing costs about $ 15,000. However, when a user buys a property, he owns the item until someone wants to buy the plot – the tokens will not be damaged, after all. On the other side, manna and fungible, which means that if a user catches large quantities of manna, they can sell the tokens to anyone who needs to buy manna, including new users who may have already shown up to buy the land.

Since space is very expensive, and the manna market is very small, it does not take much work to move the needle at the price of either. “When you release journalists, can this change the value of ether? Yes, it can change the value of ether,” explains Olson. “But you know what can change its value, and the price of manna and the value of land.”

This has already happened with the manna several times. In the next two days Facebook returned to Meta, the price of manna which, at that time, was not much higher than $ 1, rose to $ 3.71. At the time, social media- starting with niche crypto-lovers pages as CoinDesk, then after CNBC-he also mentioned the high cost of mana and interpreted it as a good interest in “metaverse.”

A few weeks later, on November 22, the 116-storey “site” in Decentraland’s Fashion District we mentioned earlier. sold for manna 618,000. The next day, released a press release announcing the “purchase of the largest metaverse sites in history,” which were taken over by several crypto sites, as well. Reuters and and National Post. When the press release was given, the price of manna was about $ 4.10.

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