Recently, under the regulatory pressure of the US SEC, Republic, the third largest equity crowdfunding platform in the US, announced that it has officially closed its $75 million Metaverse Real Estate Fund. Prior to this, this investment company was a krypton gold player in virtual land, which once refreshed the transaction record in this field, and played a certain role in fueling the hype of virtual land.
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Metaverse Fund Shut Down, Subsidiary Everyrealm Keeps Betting
Republic is an independent company spun off from the well-known financing platform AngelList, which has helped thousands of companies such as Robinhood, Cruise, Calm, and Notion raise more than one billion US dollars. Republic mainly provides equity crowdfunding services and issues security tokens Republic Note based on the Reg A+ and Reg D exemptions under the SEC.
The Republic Realm Metaverse Real Estate Fund was launched by Republic in March 2021, and launched the Test the Waters Regulation A event in December of the same year, which is open to all investors, and completed a predetermined limit of US$75 million in a short period of time. According to the plan, the fund will focus on purchasing virtual real estate such as Sandbox, Axie Infinity and Decentraland, and plans to hold them for a long time, while continuing to develop them into virtual shopping malls, event spaces and other communities, and provide real estate leasing services to provide the fund with sustainable income.
After the Metaverse Fund was launched, Republic Realm has successively purchased large amounts of virtual land. For example, in June 2021, Republic Realm purchased 259 pieces of Decentraland land for US$913,000, and in December of the same year, it purchased The Sandbox for US$4.3 million. Create a historical record for the sale price of virtual land.
However, affected by the bankruptcy of FTX, the SEC began to strengthen the supervision of the encryption field, and Republic canceled the Metaverse Fund at the request of the SEC. The sale page of Republic Realms official website also shows that all funds have been returned to investors.
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Invested in about 28 virtual platforms, and the land prices all dropped sharply
Everyrealm’s official website shows that in addition to blue-chip NFTs such as BAYC, Moonbirds, Doodles, and CloneX, the company also holds land in about 28 popular virtual worlds, including Otherside, Decentraland, The Sandbox, Somnium Space, Axie Infinity, CryptoVoxels, HighStreet, and Aavegotchi .
And Everyrealm CEO Janine Yorio has said that by buying land in a number of different virtual worlds to spread investment can reduce risk. So, what is the ROI performance of these virtual lands? The several mainstream virtual world lands that Everyrealm participated in the purchase accounted for more than 85% of the total market share, but the land prices have declined to varying degrees, but many have recently recovered.
Otherside
Otherside is due to be launched in May 2022 by Yuga Labs, the parent company of BAYC, for a total of 200,000 pieces. According to Metacat data, as of February 28, the total sales of Otherside exceeded 1.2 billion US dollars, the total number of land sales reached 169,000, the number of holders exceeded 33,000, and the market share reached 66%. Among them, the sales in 2022 will exceed 1.05 billion US dollars, and the number of land will exceed 124,000.
From the perspective of land prices, Otherside has dropped 57.6% from the average price of US$10,400 when it was launched last year, and the current average price is US$4,444.
The Sandbox
The Sandbox began to build its games on the blockchain after being acquired by Animoca Brands in 2018, attracting well-known companies such as Adidas, Gucci, HSBC, and CJ ENM to settle in. Since its launch, The Sandbox has a market share of 9%. According to Metacat data, as of February 28, the total land sales of The Sandbox exceeded 160 million US dollars, the total land sales exceeded 24,000, and the number of holders was about 22,000. Among them, the sales in 2022 will exceed 85.1 million US dollars, and the number of land will exceed 13,000.
From the perspective of land price performance, the average price of The Sandbox has fallen by 86.8% in the past year, and is currently $1,485.
Decentraland
Decentraland is a veteran virtual world platform that was first launched in beta in 2017, with an initial price of $20 for land. According to Metacat data, as of February 28, Decentralands total land sales exceeded 190 million US dollars, the total number of land sales exceeded 15,000, the number of holders exceeded 7,300, and the market share was 7%. Among them, the sales in 2022 will exceed 48 million US dollars, and the number of land will exceed 7,300.
At the same time, the average selling price of land in Decentraland also fell to $2,074, an 87.6% drop from the same period last year. However, the average price in January this year has risen by more than 51.3% compared with the end of 2022. In addition, the average Decentraland lease amount has also declined, from a peak of $8,297 to the current $893.
Somnium Space
Somnium Space is a virtual reality world based on Ethereum and Solana, with a market share of 2%. According to Metacat data, as of February 28, the total land sales of Somnium Space exceeded 38.7 million US dollars, and the total land sales exceeded 2,000 lots. Among them, the sales in 2022 will exceed 5 million US dollars, and the number of land will exceed 7,300.
Somnium Space has a total of 5,026 pieces of land, and the average selling price dropped from US$19,366 in the same period last year to US$1,175, a drop of more than 93.9%. However, prices have rebounded this year, up more than 21.1% from the beginning of the year.
CryptoVoxels
Cryptovoxels was founded in April 2018 by Nolan Consulting, headquartered in Wellington, New Zealand. The appearance is pixel-style, and the land has been set by unlimited issuance to a limit of 70,000. According to Metacat data, as of February 28, the total land sales of Cryptovoxels exceeded 39.5 million US dollars, the total land sales exceeded 7,300 pieces, and the market share was 2%. Among them, the sales in 2022 will exceed 8.3 million US dollars, and the number of land will exceed 2,100.
The average selling price of land in Cryptovoxels has similarly fallen, and is now down 88.4% from a year ago.
Aavegotchi
Aavegotchi is a DeFi-enabled NFT development game based on Aave. According to Metacat data, as of February 28, Aavegotchis total land sales exceeded 49.87 million US dollars, and the total land sales exceeded 39,000, with a market share of 2%. Among them, the sales in 2022 will exceed 12.3 million US dollars, and the number of land will exceed 14,000. In the past year, the average selling price of Aavegotchi has dropped by 51.6%, but it has risen by more than 64% from the beginning of the year.
Judging from the price dive and inactive trading performance of various virtual lands, the investment income of Everyrealm is not ideal. Of course, this also has a lot to do with the retreat of the Metaverse boom. Regardless of market hype, for landholders like Everyrealm, it is more important to increase the value of land through better construction and operation to attract more players.
