Mark Cuban says buying metaverse real estate is ‘the dumbest shit ever’

By November 14, 2022The Sandbox
Click here to view original web page at www.morningstar.com

MarketWatch

Cuban loves crypto and Web3 technology, but believes buying real estate in the metaverse is a bad idea.

Billionaire entrepreneur Mark Cuban loves cryptocurrency and Web3 technology, but thinks buying digital real estate in the metaverse is not a good idea.

"The worst part is that people are buying real estate in these places," Cuban told YouTube channel Altcoin Daily in August. "That's just the dumbest shit ever."

See also: Tom Brady, Steph Curry and Kevin O'Leary set to lose big from FTX bankruptcy filing

Cuban, who is one of the stars of the investing show "Shark Tank" and also owns the NBA's Dallas Mavericks, is referring to companies like Decentraland or The Sandbox where people can invest in virtual land within the metaverse.

The metaverse in this case refers to a 3-D decentralized version of the internet -- in many instances the metaverse may be partially powered by blockchain technology.

Celebrities like rapper Snoop Dogg, and reality TV star Paris Hilton, as well as companies like Gucci, Atari and HSBC (HSBA.LN), have already purchased virtual land in the metaverse -- a plot of virtual real estate next to Snoop Dogg's in Sandbox reportedly sold for $458,000 in December 2021.

But "right now it's more talk than anything," Cuban said in the interview about the metaverse.

See also: Matt Damon's 'Fortune Favors the Brave' commercial turns one. Here's how much you would've lost if you bought crypto then

Cuban, who made part of his fortune in the early days of the internet when he sold his company Broadcast.com to Yahoo in 1999 for $5.7 billion just before the dot-com bust (Broadcast.com has since been discontinued), has been an advocate in the crypto and NFT space in recent years.

The Dallas Mavericks owner is invested in the crypto and NFT space and claims to own several thousand dollars worth of bitcoin , ethereum and dogecoin , according to a CNBC report, and also says that 80% of his investments that aren't on Shark Tank are crypto-centric.

Generally, Web3 or Web 3.0 depicts a decentralized internet platform that runs on public blockchain technology, as opposed to Web 2.0 which is mostly run through large centralized conglomerates like Google (GOOGL)(GOOGL) and Facebook-parent Meta (META).

The metaverse could become an $800 billion market by 2024 as brands like Meta, Google, Microsoft (MSFT) and Apple(AAPL) investing in some form in the metaverse, according to Bloomberg.

See also: Why is crypto crashing? Mark Cuban says 'crypto is going through the lull that the internet went through'

The metaverse real-estate market is expected to grow by $5.37 billion between 2021 to 2026, according to a report from Technavio, a global technology research and advisory company.

-Weston Blasi

(END) Dow Jones Newswires

11-14-22 1150ET

Copyright (c) 2022 Dow Jones & Company, Inc.

All Today's Crypto News In One Place