Virtual Land on Ethereum-Based Decentraland Sold for $215,000

An unnamed user or organization has recently acquired an estate on Decentraland, a virtual reality (VR) platform developed on the Ethereum blockchain, for $215,000. The estate was a 126-parcel piece of LAND, and set a new record for the platform.

As first pointed out by Twitter user DCLBlogger, someone used the virtual project’s built-in marketplace to buy the estate with 2.7 million of the platform’s native MANA tokens.

LAND parcels are non-fungible digital assets maintained through a smart contract on the Ethereum network. These represent actual land in a 3-D virtual world that its owners will be able to use for whatever they want to once it goes live. Said virtual world has finite space, and in it each LAND token represents one 10m2 parcel.

Once Decentraland goes live later this year on early next year, users will be able to use VR to explore it and interact with applications other users have built. While the platform is expected to be a few major releases away from going live, things are moving quickly.

A partnership between Decentraland and the Ripio Credit Network (RCN), a borderless peer-to-peer crypto lending network, has recently also made it possible for the virtual world’s users to use their tokens to take out mortgages. To register for one, according to a Medium blog post, they’ll have to complete a short application and put down at least 10% of the property’s value.

Once they do, a decentralized application (dApp) will publish a request so lenders can claim the mortgage at interest ranges that can reportedly go up to nearly 80%. Once a lender claims the request, partial ownership is transferred to the purchaser, who will be able to use it.

If the borrower goes into default, the lender may gain full ownership of the parcel. Commenting on its partnership with Decentraland RCN’s CEO Sebastian Serrano stated:

The partnership between RCN and Decentraland — two of the most promising Ethereum-based projects — is one of the first examples that highlights how different smart contracts-based applications can work together. At RCN we drive our efforts to connect lenders and borrowers and offer them. Doing so in virtual reality is an exciting new horizon.

As CryptoGlobe covered, Decentraland is also developing a “strategic role playing game” called Chainbreakers. Decentraland’s native MANA token is currently trading at $0.078 after rising nearly 3% in the last 24 hours.

Reddit Co-Founder: Investing in Cryptocurrencies Should Be a Long-Term Commitment

Alexis Ohanian, the co-founder of Reddit, has said that digital asset investors should not be discouraged by the prolonged crypto bear market - as he thinks it has helped in significantly reducing the number of speculative traders and investors.

Ohanian, a history graduate from the University of Virginia and Coinbase investor, told Yahoo Finance:

This is the Crypto Winter, no doubt. But a friend of mine, Brian Armstrong — who’s the CEO of Coinbase — said, ‘This is the spring of crypto innovation.'

"Some Of The Smartest People" Now Working On Crypto Projects 

Ohanian explained that this means cryptocurrency prices are currently “depressed”, however most of the speculators may have finally exited the digital asset ecosystem. This, according to Ohanian is “great” because the people that are left are now are involved in “building” real-world solutions. He remarked:

They’re actually building the infrastructure that it’s going to take to really make this happen.

Ohanian also revealed:

Some of the smartest people I know in tech are still working on solving these problems. They’re building companies that are built on blockchain.

Expressing views similar to other prominent business leaders and entrepreneurs, Ohanian believes:

The hype [around cryptocurrencies and blockchain] is gone. The fervor is gone. But I think that’s a good thing for all of us who have been in this [from the technology’s early stages of development].

Investing In Coinbase Back In 2011

Ohanian also pointed out that he was a “seed investor in Coinbase back in 2011, back when it was a pipe dream of devoted engineers.” He mentioned that JPMorgan, the largest bank in the US, and other established established financial institutions are starting to enter the crypto space. According to Ohanian, the introduction of the JPMorgan coin suggests that “there is real innovation that is happening now that all the wild speculation is gone. And that’s a good thing.”

Acknowledging that the extended bear market may be tough to endure for many crypto industry participants, Ohanian recommended taking a long view when investing in digital assets. He said: .

The [prolonged bear market] is painful. But if you were investing ... in [crypto] in the first place, you really should have been thinking long-term. That’s just generally good advice for any kind of investing, but especially something so nascent as crypto.

Comparing Crypto Adoption To The Growth Of The Internet

In October 2018, Ohanian, a best-selling author, had compared the current state of crypto technology to that of the growth and adoption of the internet. The Reddit co-founder had noted at that time that the present state of blockchain-based platforms is similar to how the internet was during the early 1990s. However, Ohanian had also said last year that crypto technology was improving and that the initial coin offering (ICO) craze of 2017 had gone away. He remarked (in late 2018):

Now is a good time because it's scattered all the hucksters and scenesters.