The Metaverse coin storm continues to accelerate. A new stage surprises everyone. Metaverse mortgages are issued to purchase virtual land. One of the first mortgage applications was signed for a property in Decentraland.
A first in the metaverse coin craze
TerraZero Technologies has facilitated one of the first “metaverse mortgages” for a client purchasing virtual property on the Ethereum-based metaverse platform Decentraland. The Web 3.0 company said it provided the majority of the funding, according to a statement released over the weekend. However, financial terms and the identity of the customer were not disclosed. TerraZero has not yet responded to questions. “The availability of mortgages and financing will accelerate the development and adoption of the metaverse,” CEO Dan Reitzik said in the announcement. “We are excited to be at the forefront of this new and exciting economy.”
Going forward, potential clients can use the TerraZero website to explore metaverse land listings and then complete the brokerage process with the company. TerraZero holds the virtual land as its registered owner until the loan is repaid. Every transaction is collateralized by the underlying virtual real estate represented as an NFT. The Metaverse mortgage emerged when virtual property sales exploded last year. According to one estimate, sales exceeded $500 million in 2021, according to MetaMetric Solutions data cited by CNBC. Among the largest deals was the $2.43 million purchase of virtual land. Top clothing and luxury brands are also developing the metaverse feature. However, some experts say that virtual real estate is more like crypto assets than physical land. In their view, digital land can be beneficial for brands to build experiences, but less so for investors seeking property appreciation.