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Illuvium co-founder Kieran Warwick sold virtual land to Axie Infinity for $ 28.000 after buying it last year for $ 300.
Kieran Warwick, the co-founder of the upcoming NFT-based gaming metaverse Illuvium, revealed that he made a gain of over 9.000% from the overturning of a virtual plot of land purchased from Axie Infinity's metaverse.
How to invest in the real estate market
Warwick, the brother of Synthetix founder Kain, says he bought the lots during mid-2020, noting that "there weren't too many use cases" for digital earth at the time, with advertising and mining. mining in the metaverse that were yet to become common as utilities for virtual ownership.
He bought the virtual land for $ 300 and announced the sale a year later for $ 28.000 on July 13. Despite the apparent lack of usefulness, Warwick has invested "a little in" Axie Infinity on the basis of the "promise to them to build the metaverse." While players are still waiting for Axie to develop features for his land, Kieran notes that the textures have increased in value by thousands of percentage points over the past year.
“Basically it was speculation, I just thought that the game to make money itself, which is this new gaming paradigm that is taking off now, will bring so many players to this game. No matter what, if I buy a rare piece of land, it will be worth some money, ”he said.
Warwick has invested in digital lands in four metaverse projects, but has only named Axie Infinity and Mars. "I want to have ground in all the different games that I think […] will grow in the next few years."
Not all of his investments are known
Compare his strategy of investment to physical properties, noting that investors look for new developments and other signs of growth when trying to predict whether property prices in a given suburb might appreciate.
“It's the exact same principle in the metaverse,” Warwick said. “If you feel there will be popularity and there will be other people building next to you […] then it is child's play to buy this land. In almost every single case, they are very rare ”.
"If they coin 10.000 parcels of land, and then suddenly there are a million players, you can see that the scarcity will really create a little charm."
Land can be a productive good
Beyond buy-and-hodl speculative games, Warwick points out that virtual real estate investors can put their land to good use, noting that many landowners within Decentraland host advertisements for their in-game lots.
While he thinks "advertising opportunities are probably the biggest use case" at the moment, Warwick predicts that the utilities for virtual land will be "endless" as metaverses grow.
Warwick also revealed that his project will soon begin selling land, noting that Illuvium's virtual plots will have "a use case from day one".
He said Illuvium will host a mini-game that will allow virtual landowners to mine a game ore used to mint items within the game.
"You can only mine it if you have land, so immediately there's a use case," Warwick said, noting that he doesn't want the only utility of Illuvium real estate to be speculation: "just a stagnant thing where people buy, and it's only important if someone else wants to buy it ”.
