Can land assets within the metaverse really make you a fortune?
Investing in land is an ancient tradition practiced since humankind abandoned the hunter-gatherer lifestyle and decided to “settle down”. Ever since we discovered agriculture and started working the soil, the land is being bought and sold. So, the history of land ownership dates much before the adoption of currencies.
Over the millennium, the value of land gradually increased as a result of its scarcity and utilizations. Eventually, land ownership became a proven, solid investment method. Nowadays, the land is being used for a wide variety of purposes, ranging from residential and commercial development to livestock raising and mineral production.
As was the case with art ownership, it was only a matter of time before the booming NFT space expanded into land investment. In its essence, digital land is quite similar to real land but with a few unique differences.
Investing in NFT Lands
NFT land is a concept that emerged with the development of metaverse. It refers to a purchasable plot of digital space in a metaverse project. The owner can use the land for various purposes. They can take advertisements, host events, rent them out to other users, or simply buy and sell.
Shortly after the NFT land became a thing, not only individuals but also companies showed interest and made their first NFT land acquisitions. The Metaverse Group, a Tokens.com affiliated company has bought a plot of digital land located in Decentraland for $2.4m worth of cryptocurrency. This acquisition is among the biggest NFT land sales ever made and the company announced that they will be using the land for hosting digital fashion events and selling virtual clothing.
Yuga Labs, the firm behind the infamous Bored Ape Yacht Club NFT collection, is also expanding into NFT lands. Reportedly, virtual land sales will be the first phase of the metaverse initiative of Yuga Labs. “We want to build something that expands the universe of the BAYC, but also invites the larger NFT community (and those priced out of BAYC membership) to join,” the company explained.
As seen, buying an NFT land also grants the right to join exclusive communities. Think of it as buying property from a nice neighborhood. You are not only buying a house but also selecting your neighbors. As such, buying virtual land allows users to enter new DeFi communities where they can explore new ways to make a profit.
Another new revenue generation method using is NFT renting, allowing owners to keep the ownership of their NFT lands and get passive income for renting out their virtual lands.
Financing solutions for NFT land purchases by TribeOne
Finding a good piece of land to make an investment in is difficult. Obtaining a loan from a bank to purchase it can be even harder as loans for purchasing land usually have shorter repayment periods and many banks and credit unions do not easily offer land loans. You may be required to be very specific about the land you are going to purchase and be prepared to provide surveys and zoning information about the land you wish to build on.
Getting loans for NFT land, on the other hand, looks promising in terms of accessibility.
To make financing solutions for NFT land purchases more accessible, TribeOne is building an ecosystem where users will have access to products and services to invest in NFTs and make the most out of this thriving new space.
We already have an impressive list of metaverse partners, allowing users to purchase NFT land from them using our financing solutions. Users can easily opt for loans for virtual lands located in our partner metaverses and get loans at custom terms.
We are still exploring all types of utilities NFT space has to offer, including NFT land investments. As we establish a solid place in the NFT world and further develop our dApp, we gain priceless experience and know-how in this underexplored venue, which will eventually lead to more innovative products and solutions.
TribeOne is the world’s first-ever NFT lending platform that offers a seamless experience; to the users through its innovative consumer-centric products. The platform will break barriers in the traditional financial ecosystem and revolutionize the DeFi sphere as a whole. Providing the community with a platform to lend, borrow and invest in NFTs. Therefore, offering an unconventional experience for all.