The head of Tokens.com envisions the investment in virtual land to pay off as companies increase product and event announcements in the growing metaverse ecosystem, according to USA Today.
Andrew Kiguel, chief executive of crypto asset investment firm Tokens.com, estimated that his metaverse portfolio is valued at 10 times its purchase price, USA Today said in a report published Wednesday.
“It’s all about location,” he told the newspaper, saying land in the center of a virtual hub is key. “The more visitors that come, the more valuable the land becomes and the more a retailer and advertisers are willing to spend to reach those people.”
Toronto-based Tokens.com acquired a 50% stake in Metaverse Group in October for $1.7 million, then completed a further investment last week to give it a 67% stake in the company.
The deal comes after Metaverse Group made a record $2.43 million purchase of packs on metaverse platform Decentraland last month.
Kiguel has high hopes for that virtual terrain.
“I think we’ll see rapid appreciation and monetize the rental of that land and space very soon,” he told USA Today, adding that the plan is to turn the virtual area into a destination for luxury brands.
Luxury fashion houses like Gucci and Louis Vuitton are already occupying space in the metaverse via NFTs, Kiguel noted.
Metaverse Group CEO Lorne Sugarman told Insider in November that the purchase of the Decentraland property, which was in its Fashion District, provides an early foothold in high-end business opportunities in the metaverse.
“We think buying the Fashion District is like shopping Fifth Avenue in the 19th century … or creating Rodeo Drive,” he said, referring to high-end shopping areas in Manhattan and Beverly Hills.