Virtual Real Estate Takes Off With Backing From Billionaire Mike Novogratz
The virtual real estate market is taking off. Crypto billionaire and investor Mike Novogratz’s venture capitalist firm Galaxy Interactive is making a substantial investment in virtual real estate developer Republic Realm. The deal was announced in a Reuter exclusive, but terms were not disclosed at this time.
Digital real estate receiving this vote of confidence in the form of a sizeable investment from Novogratz’s VC firm bodes well for the growing industry. Despite owning many digital companies itself, Galaxy Interactive is in the portfolio of companies owned by Galaxy Digital which Novogratz is the CEO of. Galaxy Digital is a leader in the world of digital asset investing.
Recently, Republic Realm had a 10 million dollar funding but the investment from Galaxy Interactive is separate from that one. Two weeks ago, Republic Realm also made headlines when it bought a plot of virtual land for nearly 1 million dollars. With investment and innovation like this on the blockchain, they are sure to continue pushing the boundaries of what digital assets are and how they can be used.
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How Blockchain And Virtual Real Estate Merge
As a virtual real estate developer, Republic Realm buys real estate in digital worlds and develops that digital land with a team of game designers and 3D imagers. Digital stores can be rented out to tenants who sell NFT’s and other digital assets. Plus, people can hold virtual events or meetings in these spaces as well.
Their main mall right now is Metajuku, located in a virtual world called Decentraland. Decentraland is run on the DAO network. Janine Yorio Managing Director at Republic Realm makes a good point in stating,
Real world shopping malls are sitting half empty as stores move more business online. Meanwhile, elaborate virtual malls are being built in the metaverse, a nascent industry called ‘de-commerce.
In a different ad on Republic Realm’s website for a virtual villa and private island digital world coming soon:
Your private island can serve as a backdrop to your digital identity, opening digital doors for you and creating the online life you dream about living.
Of course, in these digital worlds cryptocurrencies will be the main mode for transactions. Additionally, stores, digital land, and digital goods purchased in these virtual worlds will be held on the blockchain and in users crypto wallet’s.
Related Reading | How Decentraland offers multiple ways for profit with digital real estate
Will Virtual Real Estate Move Crypto Prices?
Right now, big news from the virtual real estate world will probably not move cryptocurrency prices in a significant way. However, that could change in short order. As more virtual worlds are created and more people participate in those virtual worlds, the prices of digital assets, digital land, and any crypto associated with those assets will go up.
Despite BTC and the crypto market in general holding steady after its recent downtrend, this is a major vote of confidence for blockchain technology from a VC with big money to spend. They see the future of virtual cities and worlds all run on by blockchain technology.
Featured Photo by Joshua Sortino on Unsplash