Mark Cuban calls buying real estate in metaverses “the dumbest” idea

The billionaire noted that there is no scarcity of land in the virtual property market, unlike in the real world

11.08.2022 - 13:55

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What’s new? Billionaire Mark Cuban said that buying real estate in metaverses is “the dumbest” idea ever and a waste of money. In an interview with YouTube channel Altcoin Daily, he explained that in the real world, real estate is valuable because land is a scarce resource, but in digital world there is an unlimited amount of space where you can create virtual buildings. Notably, the billionaire is an investor in Yuga Labs, the company that owns the popular NFT collection Bored Ape Yacht Club, which was also actively selling land as part of the launch of its Otherside metaverse.

Interview with Mark Cuban

The situation in the metaverse market. According to MetaMetric Solutions, the four major metaverses (Sandbox, Decentraland, Cryptovoxels and Somnium) reached a combined sales of $501 million in 2021. Also, Republic Realm, an investment firm that owns and develops virtual real estate, invested a record $4,3 million in digital land on the Sandbox platform.

However, between January and August 2022, the average value of digital land plummeted 85%, from $17 000 to $2 500, according to trading platform WeMeta. In Decentraland, prices fell from $37 238 to $5 163, in Sandbox from $35 500 to $2 800.

Mark Cuban is an American entrepreneur and owner of the Dallas Mavericks basketball club. He is a co-founder of HDNet, a shareholder in Magnolia Pictures, a movie distributor, and in AXS TV, an entertainment channel. As an investor, he is a participant in the reality show Shark Tank. As of 2022, his fortune is estimated at $4,7 billion, according to Forbes.

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