The increasing interest in crypto money in 2021 paved the way for the development of various sectors. As the growing popularity of NFTs continues to be questioned by some investors, the virtual land buying spree has now begun.
The change of Facebook’s name to Meta, Microsoft’s move to Metaverse and the interest of big companies such as Adidas in this field caused investors to turn to this field. In the last quarter of 2021, projects focused on Metaverse dominated the market by making high-yield rallies, while virtual land sales of large projects also exploded.
While some investors thought that this frenzy was part of a big bubble, others were worried about grabbing the plots early, which they thought would be much more valuable in the future.
At this point, a warning came from China, which came to the fore with its warnings and bans on cryptocurrencies.
According to the Chinese journalist Colin Wu, an article on NFT and Metaverse mania was published on the official blog of a top Chinese government agency.
It was emphasized in the article that these sectors and related cryptocurrencies could be part of a grand ponzi scheme.
While it was stated in the article that the definition of Metaverse could not be filled and defined, it was said that the activity in the market was far from rational discussion and research. The article cited million-dollar plots purchased through MANA and SAND as examples of buying spree.
“Can be a balloon”
The article, titled “Meta Universe may be a fancy financial scam that comes with drums”, included the following statements;
“In the meta-universe, players can use sandbox spaces such as land and houses to create, socialize and play games.
For this reason, users must own a virtual land or house in order to occupy a place in it. Of course, these virtual land or houses cannot be used in the real world.
As more and more people enter this virtual world according to market rules, the price of virtual land or houses will naturally rise.
Many practitioners have inconsistent definitions of “how to define the meta-universe.”
Some say the Metaverse is “old wine in a new bottle”, some think blockchain is a necessity of the Metaverse, and some think there is no real metaverse right now.
Under the premise that the basic definition is not clear, many reports and articles point out that there is a bubble in the prices of digital collectibles, including virtual land and real estate.”
*Not Investment Advice.