Decentraland (CCC:MANA-USD) is highly relevant right now. It hits on NFTs, Ethereum (CCC:ETH-USD) tokens, and most importantly, it is a metaverse.
And with Meta Platforms (NASDAQ:FB) as the official recent rebrand of Facebook, the idea of the metaverse has never been trendier.
That, in and of itself, isn’t reason enough to purchase Decentraland. But it is a good place to start in understanding Decentraland as an investment and a metaverse.
Facebook Rebrand
The rebranding of Facebook into Meta Platforms on Oct. 28 served as a powerful signal that the metaverse is unlikely to be a fleeting phenomenon.
Facebook is now to be known as Meta as it focuses on building the metaverse. The metaverse is a shared virtual environment that has existed in many forms for some time. But with Facebook ditching its former name to become Meta the idea has taken on new importance.
Decentraland, an early metaverse, is garnering increased attention due to the change. In fact, its price moved with the news after months of stagnation. Decentraland prices jumped from 80 cents to over $4 on the Meta rebrand news. It has since given back some of those gains, falling to $2.60.
And investors now want to know more about Decentraland and if it will continue to rise.
Not Flashy
Compare the metaverse that exists in Decentraland to that which Mark Zuckerberg showed in his Meta presentation and you’ll likely conclude that Meta has a leg up.
Meta wants you to believe that its metaverse will be the end all, be all. And most would agree that if Meta does build out a platform and metaverse approaching that in the video, it’d be nothing short of amazing.
Meta wants consumers to believe that Meta is where the metaverse begins, and where all the potential is. But that’s simply not true.
Decentraland is interesting and has merit on its own. And one of the most interesting aspects of Decentraland is its potential to make you money from land and NFTs.
Land and NFTs
Now that Decentraland is on the radars of more investors due to the Meta news there will be renewed interest in digital land.
In the metaverse of Decentraland it is possible to buy parcels of digital land, develop them, and flip them for a tidy profit.
I say that there will be renewed interest in making money from selling land on Decentraland because there is precedent for that possibility.
Even back in 2018 there were several reports of land investors experiencing returns of several hundred percent.
One such investor, a chemical sourcing specialist from Saudi Arabia noted: “I got involved in December 2017, it was right before it took off, I put in $60,000 and have been buying and selling LAND since then. At the moment I currently own about 450 LANDs, which is worth over $350,000.”
Another such investor who put in a more modest $2,000 investment saw it grow to multiple tens of thousands of dollars.
There are surely multiple other ways to make money from Decentraland real estate, but the point is that real money can be made.
The land parcels are represented by their own NFT. Here too, Decentraland is attractive.
Limited Resource
The Decentraland metaverse encompasses 90,000 pieces of land, or parcels. Each parcel is 16 square meters, roughly 50 feet by 50 feet.
So land is a limited resource in Decentraland as it is in the real world. Its value, as in the real world, is derived from a multitude of factors. Build an NFT art gallery or any other creative endeavor in which MANA can be traded.
And in March of 2021 each of those 90,000 parcels had a value of $5,800.
There really are vast possibilities. In my mind that makes Decentraland relevant and worth your time. Perhaps the value of MANA itself skyrockets, perhaps not. I see the real potential in simply building and flipping on the platform. It won’t shock me to find out that a young kid makes a ton of money from a metaverse like Decentraland by building and selling.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
