A once-booming market for virtual real estate left early believers holding assets with little demand.
Five years ago, tech angel investor Chris Adamo and a few friends jumped on a burgeoning trend in the digital asset world: they used a virtual real estate broker to buy 23 parcels of property in a metaverse called The Sandbox. He doesn’t remember exactly how much he spent, but it was around $200,000 for the whole group. The real estate, to be clear, consisted of pixelated parcels in “hip,” “trendy” virtual “neighborhoods,” an asset that crypto bros and Web3 enthusiasts like Adamo saw as the future of tech and digital investment. At one point, it ballooned tenfold in value. Adamo was far from alone. Across the four major metaverse platforms, property sales topped $500 million in 2021.
