TODAY’s equivalent of the web domain hoarders of the 1990s are betting big on the metaverse, investing millions buying up property in digital spaces.
Andrew Kiguel, CEO of crypto-asset investment firm Tokens.com, has built up a huge portfolio of properties across worlds including Decentraland and the Sandbox.
His company has spent an eye-watering amount to amass the blockchain assets.
In November, it bought one single patch of NFT real estate for almost $2.5million.
Kiguel is taking a gamble, but he’s hopeful it is one that will pay off.
Just like in the 1990s during the development of Web1.0 when a select number of individuals made mega-cash sweeping up internet domain names before then selling them on to big businesses, Kiguel hopes his vast digital property empire will be a good investment in the long term.
However, unlike investors back then, he has no intention of selling his Web3.0 assets.
Just like owning a physical property, in the metaverse there is the option of renting.
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“We don’t want to sell the land, we want to continue buying land,” Kiguel said in a recent media interview.
“We think there’s a great business plan here with respect to advertisers wanting to pay for space from us, whether that’s digital billboards, virtual stores, or preparing events for them in this new form of social media and gaming environment.”
Putting his idea in simple terms, he added: “As people land on your spaces you collect revenue and rent.
“If there were millions of people on the same monopoly board, you could collect all the time.”
A whole series of household brands – including McDonalds, JPMorgan and Ralph Lauren – have entered metaverse worlds to interact with their customers and all of them need property to act as their shop front.
Already, some neighbourhoods in worlds are more popular than others, giving those who own property in those areas immense power.
Tokens.com’s record breaking $2.43million property is in the much sought after Fashion District of Decentraland.
The district will later this month host the first ever metaverse fashion week, with Tommy Hilfiger and Dolce & Gabbana among those in attendance.
Confident brands will be leaping at the opportunity to rent land off him, he said: “Kids today don’t watch TV, they don’t go to malls—they do their shopping online, they don’t read newspapers, they’re consuming information on social media platforms, and the metaverse is the next social media platform.”
Tokens.com has already started leasing some of its land to big name companies.
Last week it announced Skechers, the 3rd largest footwear brand in the world, had signed as a tenant.
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