183 Interactions, 2 Today
Kieran Warwick, co-founder of Illuvium, sold a virtual property piece in Axie Infinity for $28,000 after acquiring it for $300 last year.
Kieran Warwick, co-founder of the upcoming NFT-powered gaming metaverse Illuvium, has disclosed that he earned a profit of over 9,000% by selling a virtual parcel of land acquired from the Axie Infinity metaverse.
Warwick, Synthetix founder Kain’s brother, recalls acquiring the plots in mid-2020, adding that there “weren’t too many use cases” for digital land at the time, with in-metaverse advertising and mining still being uncommon as utilities for virtual property.
He paid $300 for the property and announced its sale a year later on July 13 for $28,000.
I just sold a plot of land for 28K that I bought for $300.
You think this isn’t going to be a revolution?
What happens when your kid asks for your CC to play a game and comes back with bundles of cash?
— Kieran (@KieranWarwick) July 12, 2021
Despite the apparent lack of value, Warwick invested “quite a bit” in Axie Infinity on the basis of “the promise for them to build out the metaverse.” While players wait for Axie to add functionality to its land, Kieran notes that the plots’ value has grown by thousands of percent in the last year.
“Basically, it was speculation; I just assumed that play-to-earn, which is a new gaming paradigm that is taking off right now, would attract a large number of players to this game. “No matter what, if I buy a rare plot of land, it will be worth something,” he stated.
Warwick has invested in four metaverse ventures, although only Axie Infinity and Mars have been mentioned.
“I want to have land in all of the different games that I think are […] going to grow in the next few years.”
He compares his investment technique to physical real estate, saying that when attempting to anticipate whether property values in a specific region are going to rise, investors look for new constructions and other indicators of expansion.
“It’s the exact same principle in the metaverse,” said Warwick. “If you feel like there’s going to be popularity and there’s going to be other people building next to you […] then it’s a no-brainer to buy these land plots. In almost every single case, they’re very rare.”
“If they mint 10,000 land plots, and then all of a sudden there’s a million players, you can see that the scarcity there is going to really create some allure.”
Land can be a productive asset
Aside from speculative buy-and-hold strategies, Warwick highlights that virtual real estate investors may put their property to work, adding that many Decentraland landowners host advertisements on their plots in the game.
While he believes that “advertising opportunities are probably the biggest use case” at the present, Warwick believes that as metaverses expand, the utilities for virtual land will be “endless.”
Warwick also announced that his own project, Illuvium, will begin selling property shortly, underlining that Illuvium’s virtual plots will have “a use case from day one.”
He stated that Illuvium would feature a mini-game in which virtual landowners will be able to mine for an in-game mineral that will be used to mint things within the game.
“You can only mine it if you have land, so immediately there’s a use case,” Warwick said, emphasizing he does not want the sole utility of Illuvium’s real estate to be speculation: “just a stagnant thing where people buy, and it’s only important if someone else wants to buy it.”