The Decentraland Auction
The Decentraland Auction went live on December 15th. This was a chance for people to purchase their parcels of land in the virtual city. Here are the results from the auction taken from the Decentraland.org website:
Looking at the stats and considering the time of the auction, it looks like the average parcel sold for around $255. Lands in the center of the city sold for over 10 times the average price. It is interesting that the people purchasing the land valued being in the center much more than other parts of the city considering the ultimate value will be created by the owners of the land.
Supply Side Value
In a scenario like this the value is going to be created by the supplier. If you think of the Ipod being something that created value on the supply side, then the value created through parcels of land in Decentraland will be something like that. The value of the Ipod wasn’t known to anyone before it was created, therefore you did not know that you wanted one. Because you did not know that you wanted one, you had no demand for it. Apple supplied the world the Ipod, and the world would eventually demand it.
With these parcels of land, people don’t really know what to expect from the creators of the content. The suppliers of the best content as deemed by the consumers of the content will create the most valuable parcels. Parcels surrounding these creators will go up in value because of the attention they will receive.
This won’t be a city where downtown is the most valuable real estate because it is close to everything like the past.
Mana is the currency used within Decentraland. It is a crypto currency similar to Bitcoin is an easy way to describe it to someone who has zero knowledge of cryptos in the first place. Mana is also some what finite, and it is used to buy the finite land available. This is what drew me to Decentraland as an investment in the first place. As a result of all of this, I came to recommend Decentraland and Mana as a good investment
The value of Mana will be dictated by the interest in Decentraland which will be dictated by the creators of the content within Decentraland. As long as the community can create positive growth within their own community, we will see MANA go up in value over time.
Decentraland can develop an ecosystem all to itself where content creators are paid by land owners to drive traffic to their parcels of land. Land owners may opt to charge rent to content creators as well. The possibilities are endless and I am excited to see what the future holds for Decentraland. We will probably see a lot of entrepreneurs come from Decentraland. First of all though, we need to see what happens with the Genesis city.
You can purchase MANA through an exchange. I recommend Binance.com. Click this link to create your account on Binance.com:
First of all you will need to have Bitcoin or Ethereum first to trade to Mana. Also, you can fund your Coinbase account via traditional bank accounts.
Set up a Coinbase account.
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For more on Decentraland, be sure check out the Decentraland wiki page that has tons of great information: