Miscellaneous

Why Mark Cuban Thinks Investing in This Metaverse Product is ‘Dumb’

Imagine this: you’re an entrepreneur who’s passionate about the metaverse and Web3, and you want to claim your space in this new digital frontier. You learn that some metaverse companies, such as the Sandbox and Decentraland, are selling “plots” of digital land in the form of NFTs. Big brands like Sotheby’s, Samsung, and Netflix have shelled out thousands for this “land”. Should you consider planting your flag as well? 

For Mark Cuban, the answer, at least for now, is a resounding “No.” During an interview with YouTube channel Altcoin Daily, the billionaire entrepreneur called buying real estate in the metaverse “the dumbest shit ever,” then rephrased to “super-mega immaculatley dumb.”  

Cuban went on to explain that the biggest and best selling point of the metaverse is that unlike the real world, there is unlimited space to create, meaning that any scarcity of land is artificial. 

According to Cuban, specific places in the metaverse could have perceived value because of exclusive access to people or digital experiences, but digital real estate simply won’t work in the same way that it works in the physical world. Having a great storefront location right off the highway might be a winning strategy in the real world, but in an environment where you can teleport anywhere with the press of a button, will location still matter? 

The investor says that the quality and exclusivity of access to specific communities and experiences will define the value of digital spaces in the metaverse, rather than an address having inherent value. 

Cuban’s thoughts show that everyone is still trying to figure out exactly what the metaverse is going to be, but for entrepreneurs interested in the space, its necessary to think critically about how doing business in the metaverse will differ from real life, and adjust your tactics to fit this strange new world. 

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