TerraZero Technologies has facilitated one of the first-ever “metaverse mortgages” for a client buying virtual property in the ethereum-based metaverse platform Decentraland.
The Web 3.0 company said it provided the majority of the financing, according to a statement released over the weekend. But financial terms nor the client’s identity were disclosed. TerraZero did not immediately respond to a request for comment. “Mortgages and financing availability will expedite the development and adoption of the metaverse,” CEO Dan Reitzik said in the announcement.
“We are excited to be at the forefront of this new and exciting economy.”Moving forward, prospective clients can use the TerraZero website to explore metaverse land listings, then finalize the brokerage process with the company. A recent report by crypto asset manager Grayscale estimates the digital world may grow into a $1 trillion business in the near future.
Here, major artists, including Justin Bieber, Ariana Grande, and DJ Marshmello, are performing as their own avatars. Even Paris Hilton DJ’ed a New Year’s Eve party on her own virtual island. Kiguel’s company recently dropped nearly $2.5 million on a patch of land in Decentraland — one of several popular metaverse worlds.
“Prices have gone up 400% to 500% in the last few months,” Kiguel said. Another hot metaverse world is the Sandbox, where Janine Yorio’s virtual real estate development company, Republic Realm, spent a record $4.3 million on a parcel of virtual land. The metaverse mortgage comes as sales of virtual property exploded last year.
By one estimate, sales exceeded $500 million in 2021, according to MetaMetric Solutions data cited by CNBC. Among the biggest deals was a $2.43 million virtual land purchase. Top apparel and luxury brands are also developing metaverse property. But some experts say virtual real estate is more similar to crypto-assets than physical land. To them, digital land can be useful for brands to build experiences, but less so for investors looking for property appreciation.
