Guide to Virtual Land Investing 101
It is 2035.
The Metaverse has become the front-end of the Internet, the interface for communicating
with the smart contracts, AI and robots that have automated much of our
The people of the world have taken back their data and digital rights through the
decentralized web and DAOs, providing them leverage against the once monolithic
corporations whose closed platforms have crumbled to dust.
People can live their digital lives in anonymity, or they can use their newfound leverage
to sell their data to the once powerful “big tech” companies, providing a universal
basic income for billions across the globe.
Metaverse entrepreneurs and real-estate moguls drive a now crucial part of the global
economy. Those that saw the opportunity in its infancy made big bets and now generate
massive revenue streams through their rental properties and profit-sharing. Those that
did not take advantage have become second-class citizens in the Metaverse, at the mercy
of ever-increasing rents for the land their Web3 businesses occupy.
Decentralization and the blockchain have changed much. However fortune as always, still
favors the bold..
The Current Landscape
Virtual land investing in the Metaverse is a hot topic these days, with land plots in
coveted locations going for hundreds of thousands (even millions) of dollars and bringing
massive returns to early speculators. Someone even paid $450,000 to be Snoop Dogg’s neighbor
in The Sandbox, a popular Metaverse .
Although virtual real estate sales have only really entered the popular consciousness in the
last 6–9 months, it dates back many years to games like Second Life, and has been growing
since. In 2021 real estate sales in the Metaverse reached $500 million, and are projected to
double in 2022 .
If you’ve been interested in taking the plunge and investing but don’t know where to
start, we’ve got you covered. Although this new type of investment may seem
complicated and difficult to purchase, it’s actually much easier than you think. We’ll go
over the types of land, how to think about and approach virtual land investing, and how to
actually go through the process of purchasing the land itself.. and profiting!
Like with any investment, there are risks to investing in virtual land, and your
investments could go to zero. Invest wisely and know your tolerance for risk. Nothing in
this article constitutes financial advice.
Types of Virtual Land
Just like in the real world there are options when purchasing real estate — in the
Metaverse, this primarily comes down to undeveloped and developed land:
- Undeveloped land — these are barren plots which as of
the time of purchase do not have any structure on them or utility/application tied to
them. You can simply sit on undeveloped land or roll up your sleeves and get building
something to place there. Different platforms will have different toolsets and options
for how and what you can build.
- Developed land — Property which has a building or some
utility on it such as a condo, a game or a branded store. The development on the land
may provide an income stream.
Generally speaking, developed land is worth more. “Location! Location! Location!” is another
variable that affects desirability and price, but as the Metaverse evolves and new features
such as teleporters and bookmarked fast travel are introduced, this will become less
important. Judge the value of plots which are priced based on location accordingly if you
are looking to hold long-term.
How to Think about NFTs and Land in the Metaverse
The practices that venture capitalists follow when investing in early-stage private
companies are applicable to the current investing environment in virtual land (and with NFTs
- Things can change greatly with early-stage projects and
new technologies. More than the project, bet on the team. A team that has the
ability (and willingness) to pivot and make hard decisions will be able to adapt and
survive, which increases the odds of them generating a return on your investment.
- Don’t expect all your investments to make money. Maybe
10–20% will do well. The rest will lose money or provide returns that are either
negligible or inefficient, given the amount of time you had to hold to make the return.
- Given the point above, making multiple bets (or a
crystal ball!) is required. The odds of making only one investment and
it providing the 100x return that everyone dreams of is unlikely. There is another
reason to diversify as well, which we’ll get into in the next section.
And just like with any publicly traded investment, volatility, impact of the overall health
of the economy and “Buy low, sell high” still applies to land NFTs!
Growing Your Investments & Deeper Knowledge
Look Ahead — Look for the potential for new revenue streams and future fit as the
Metaverse matures. Revenue streams and utility is where things really get interesting. Think
about what brands and users are going to want and need. The space is moving fast!
Regulation — One of the things that attracts people to the blockchain is anonymity.
However an investment which is considered a security by the SEC requires compliance with
customer identification laws around KYC (Know Your Customer) and AML (Anti-Money
Laundering). The current status of token regulation and precedents so far goes way beyond
the scope of this article, but by focusing on investments with utility you lessen the chance
of your holdings being marked as securities. 
Diversify to Mitigate Hacks — Another consideration for diversifying is the danger of
hacks and stolen investments. With new technologies there will always be loopholes and
exploits in the early-going, and teams trying to rush product to capitalize on FOMO while
slacking off on security and proper protocols only makes the situation worse. Just recently,
one of the biggest play-to-earn Web3 games Axie Infinity was hacked for an eye-watering $625
Double Down With Tokens — If you’ve bought land in a project you really believe in,
you can continue to support it while also diversifying your holdings by investing in its
native token (for example CasinoEmpire’s CASI or The Sandbox’s SAND). These tokens enable
Metaverse economies to run and a strong token is key in rising virtual land values.
SAND Token’s price over the last 12 months
Niche Down — While there is appeal to worlds like The Sandbox that offer “everything
to everyone,” there is a less talked-about but huge opportunity in virtual worlds that focus
on popular markets and game genres that have traditionally strong monetization. For example
is a virtual Las Vegas in which you can beat the house or BE the house!
Follow LuckyLadyGames CEO Sandra Wong on
How to Invest
Now that you know about the different options for investing, let’s talk about the steps you
need to take in order to pull the trigger and get the NFT representing the land in your
crypto wallet (steps will differ depending on network and Metaverse platform).
As with any investment, due diligence is a must; our recommendations are below.
- Find a Project — Google, Discord, Twitter, Reddit and
technology news sites are great places to stay up to date and find new early-stage
projects before they blow up. Once you find a project, review the roadmap and tech stack
to see if the project has legs and the vision to attract more people to grow the value
of your investment. Is there an actual product yet? Or at least a video of the
in-development product on the website? If something smells like a rug pull, it’s
probably a rug pull.
- Review the Technology Against Your Goals — If you want
to develop your land (and especially if you have specific ideas in mind) you’ll want to
review the tools, roadmap and rules of the Metaverse that your potential investment
exists in. The same advice applies for any passive revenue generation opportunities, if
that’s what you are looking for. For example, all land in CasinoEmpire.io will be
updated with any applicable future feature releases, and that includes a library of FREE
tools for users to develop their land with (as seen on the roadmap).
- Dox the Team — The nature of decentralization and
crypto means many projects are run by founders representing themselves with pseudonyms
and avatars. In which case understanding who you are investing in as people generally
isn’t as simple as doing a quick search on Linkedin.
- Get a Wallet — ou’ll need a wallet to a) put crypto
into to purchase your investment and b) to store your newly-acquired land NFT. This will
differ from project to project, but MetaMask is the most commonly supported wallet, and
is available as both a mobile app and as a desktop browser extension.
- Purchase — Depending on where your digital land
exists, you’ll have to go to a specific website to make your purchase, just like with
shopping for physical goods in Web 2.0. The Sandbox and Decentraland have their own
marketplaces on their respective sites.
The marketplace for land plots in Decentraland
- Wallet Setup — Make sure your wallet is set up to
receive any revenues generated via airdrops etc. How to collect your earnings will be in
whitepapers and company factsheets.
- Join the Community — oin the community (on Discord,
Reddit etc.) of wherever your land exists to be in the loop on any platform news that
might affect your investment.
- HODL or Sell? — At any time you can list your NFT land
on secondary markets such as OpenSea — it’s flipping real estate in the digital world!А
By thinking about what you want out of your investment, learning about the space and doing
due diligence, you can derisk your investments by avoiding purely speculative plays and rug
The Web3 landscape is fragmented, creating a barrier to entry for would-be new enthusiasts.
However it’s still easier to get a handle on than you think, and this fragmentation is
typical with new markets and technologies. We’ll likely start to see consolidation and
standards arise more and more rapidly as behemoths like Animoca and innovators like
Immutable X continue to grow. This means more investors and rising prices as it gets easier
and easier to invest, rewarding those who take the time to learn and get in early.
We’ve covered a lot in this primer, congratulations for making it this far!
We hope you can now see that not only is the world of Metaverse land investing not so
complicated, but that it is full of possibilities that we are not even beginning to scratch
the surface of:
- Consolidation and standards will make it easier to invest and
attract the “late majority”
- A new digital interactive creator economy pioneered by
Minecraft, Roblox and Play-to-Earn will further drive investment and innovation
- Major companies continuing to announce Metaverse investments
will also bring more FOMO and momentum trading in the short-term, and even more
We believe the Metaverse and a decentralized future is inevitable — if you don’t take part
early by buying land and setting up revenue streams, you’ll be renting!
Want to stake your claim to land in CasinoEmpire? Learn more about the project and join our Discord for updates!
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