Non-fungible tokens (NFTs) are all the rage today, so much so that even big-name celebrities are jumping on the craze. Singaporean singer JJ Lin recently announced on Twitter that he has acquired three plots of digital real estate in Decentraland, an Ethereum-powered virtual reality platform that builds on the “metaverse” idea.
The three plots of land – Prime Gallery 1, Primary Gallery 2 and NEAREST to GENESIS PLAZA – were purchased on the OpenSea NFT marketplace, according to 99.co. Each plot cost Lin 6000 MANA, Decentraland’s cryptocurrency, which equates to about US$30,000 or S$41,000.
The OpenSea transaction records reportedly show that user Dan309 bought Prime Galleries 1 and 2 about a month ago before recently selling the two plots to Lin, who goes by the username Meta_Enigma. NEAREST to GENESIS PLAZA, on the other hand, was bought by Lin from user DCF753.
When it comes to what will happen to the three plots of land, that’s entirely up to Lin. Decentraland allows its users to buy and sell land, build on it or monetise it, among other activities. He can also showcase his NFT collection there for visitors to see.
After all, the 40-year-old Lin seems to be quite the fan of NFTs. In early November, he purchased a rare CryptoPunk NFT (No. 8601) for 125 Ethereum, which is about US$555,000 or S$761,000. He also has a Bored Ape Yacht Club NFT that’s currently going for about 40.621 Ethereum, or around US$175,200.
For the uninitiated, NFTs are digital assets built on blockchain technology. They’re essentially one-of-a-kind collectables that can be anything from a piece of art to a plot of virtual land. Sure, someone can just make another copy of the digital file but the NFT itself stores unique properties that cannot be duplicated.
It’s almost the same as, say, a painting in real life. Someone can, for example, do a one-to-one copy of that painting, but regardless of how similar they look, there’s still only one original.
The report adds that around the same time Lin purchased his three plots of land, the Metaverse Group, a subsidiary of Tokens.com, bought a separate plot for a record-setting 618,000 MANA, which is around US$2.4 million. It’s said to be the most expensive piece of virtual real estate to be sold so far.
Decentraland’s competition, The Sandbox, is also now hosting a number of high-profile partners who own plots of land, from brands like The Walking Dead and Atari to personalities like rapper Snoop Dogg and DJ Deadmau5. Lin similarly owns two plots of land in The Sandbox.
For those looking to invest in NFTs, it’s worth noting that, like all other investments, they’re not without risks. Their market is big, yes, but as of right now, it’s still unregulated. It can also be quite volatile, given how it leans on trends. You can invest in an expensive NFT today, hold onto it, then later find out it’s not worth much anymore.
We’re not discouraging anyone here. In fact, we believe this is the next big thing in technology and completely shifts how pieces of art are showcased and sold. All we’re saying is to be smart about your investments. Perhaps as a rule of thumb, only invest amounts that you can afford to lose.