Once you decide on a platform, next is to decide on a location within the platform. It’s no different than focusing your real-world real-estate investments on first a city, then an area or neighborhood within that city, then a block, then a location on that block. Then, depending on what your vision is for the parcel, the location should be considerate of potential traffic and neighbors. Finally, how much can you afford to spend? Is this a short-term investment or a long-term investment? Are you looking to flip it or hold it? These are all real-estate investment 101 questions, but my point is, most of those same real-world principals easily transfer to the virtual blockchain world. When you think of it in those terms, it tends to demystify things a bit. The only outlying consideration is longevity of the platform and the scarcity of parcels. Both The Sandbox and Decentraland have finite amounts of LAND, which you can arguably apply to the real-world, but it’s not AS true as it is in a virtual blockchain world.
Let’s use The Sandbox as an example.
There are two levels of LAND in The Sandbox, Regular and Premium.
Premium LANDs surround major partners or social hubs. This means that the LANDs surrounding that area will experience higher traffic from players, higher traffic equals more views, more views equal more engagement, and more engagement equals larger profits (ideally, there are no guarantees here). Either by players using these locations as entry points or navigating to these locations to use or visit them in-game, these places are seen as being the more lucrative areas.
Additionally, If or when these premium LANDs are developed, the owners won’t need to advertise or drive traffic to their experience as much as regular LAND owners simply because they will be getting more passive views. This makes the parcel attractive for developers to purchase and/or rent from LAND owners who may be more interested in profiting off of the parcel than creating a separate business or experience on top of that. Again, very similar to the physical world.
The best and most successful project so far (in my opinion) is the Snoopverse. If you explore the land surrounding that parcel, you will see some good examples of how location affects price – one parcel next to the Snoopverse selling for $450,000 in late 2021. The map illustrates the location of Snoopverse, that is sandwiched between land owned by DJ Aoki and Migos. That’s not to say that there is no value in Regular LAND, there are several Regular parcels available near this area, but it all depends on your budget and your goals.
Current “Premium” parcels near Snoopverse parcel bids are listed anywhere from $243,000 - $52,000
Current “Regular” parcels near Snoopverse are listed anywhere from $21,000 - $8,600
The Snoopverse Experience
https://www.sandbox.game/en/snoopdogg/
The Doggies (on Opensea) - .1426 ETH / $185
Unlockable content:
- Access to Snoopverse
- Get involved in the development process of Snoopverse
- Exclusive NFT drops
- Whitelist access to Doggies drop
- Invitation to the Cozomo Art gallery opening
- Future multiplier on staking
- SAND Rewards in Snoopverse play-to-earn
Snoop’s Private Party Pass (on Opensea) - .26 ETH / $336
Unlockable content:
- Invitation to Snoop's Private Party
- Access to Snoop's first Metaverse concert
- Invitation to Cozomo Art gallery opening
- Whitelist access to Doggies drop
- Future multiplier on staking
Other Popular Brands currently in The Sandbox Ecosystem:
- The Walking Dead
- Adidas
- South China Morning Post
- Avenged Sevenfold
- Richie Hawtin
- The Smurfs
- Hell’s Kitchen
- Roller Coaster Tycoon World
- Atari
- Care Bears
- Blondish
- Animoca Brands
(Source: The Sandbox)
This is a post by Cori Johnson-Stankowicz