Crypto glossary
Virtual land
Virtual land is a parcel in a metaverse platform sold as an NFT, which owners can build on, rent out or resell; prices boomed and crashed in 2021 and 2022.
Metaverse platforms divide their maps into a fixed number of parcels, each represented by an NFT. Owners can build experiences, games, galleries or shops on their land, rent it to others or hold it hoping that busy areas, near popular venues or famous neighbours, become valuable. Scarcity is set by the platform's design, much like a limited collection.
In late 2021 and early 2022 virtual land became one of the hottest NFT categories. Brands, investment funds and celebrities bought parcels, single plots sold for millions of dollars, and a major land sale in April 2022 raised hundreds of millions while congesting Ethereum with a gas war. Companies offered metaverse mortgages and property management services.
Prices then collapsed by more than 90% in most worlds as user numbers stayed low and speculative demand vanished. Land only has value if people visit the platform, and owners depend on the developer continuing to operate it. Supply can also be expanded by new worlds or expansions, and land cannot be moved to another platform.
Example
An investor bought a parcel next to a famous musician's virtual mansion for 250 ETH in 2021; two years later the best offer was under 5 ETH.