JJ Lin purchased virtual land again. Can ordinary people play with it?

According to the latest news, the famous singer JJ Lin announced on the social platform that he has acquired a virtual plot of land in Arcade Land.

It seems that neither Singapore nor Jiangnan can satisfy JJ's "possessiveness". You know, this is not the first time that JJ Lin has bought virtual land. As early as last year, he bought three plots of land for nearly 800,000 yuan.

Not only that, judging from JJ Lin’s Opensea account information, he is also the owner of many NFTs, such as Fat Ape, Snadbox land, Space Kubz, Dark Horizon, AK Cyber ​​Dolphin Star, Graycraft, etc.

So, who is the Arcade Land owned by JJ Lin this time?

What is Arcade Land?

Arcade Land is a new metaverse project that mainly operates virtual land, and its token is ApeCoin . Arcade Land’s official website announced a number of strategic partners, including BYAC, Mekaverse, mfer, PhantaBear, etc.

On April 1, Arcade Land officially started whitelist sales , with the mint price starting at 0.25 ETH, and divided into four types of land. Element market data showed that Arcade Land's transaction volume exceeded 1,200 ETH one hour after the sale started, with 2,700 holders and a floor price of 0.45 ETH.

Arcade Land was launched on April 2. According to NFTGo.io data, Arcade Land's 24-hour trading volume exceeded $12.24 million, ranking third in NFT trading volume, with a floor price of 0.685 ETH.

It seems that JJ Lin acted quite quickly this time, as he decided to invest in this new project on the seventh day after the sale started.

Learn about virtual land

Some people may not know much about virtual land. Let us briefly introduce this new "investment darling".

At present, a large part of blockchain technology applications are based on Ethereum. For example, the popular "CryptoKitties" in the past few years is a scenario-based application based on Ethereum. The virtual land purchased by JJ Lin is similar to this, but it is embodied as "land".

So why is virtual land valuable? Because virtual land is based on the principle of decentralization, land and other assets are stored on the blockchain, ownership belongs to the user, and the "land area" is negotiated by all users. Generally speaking, the number of plots is limited. As more and more people enter the market to invest, the price will inevitably continue to grow.

In addition to the land itself, the influence of star players, derived advertising, event revenue, etc. are all part of the value. Moreover, users can transfer and sell assets such as land in the form of NFT to obtain actual income.

Currently, high-value virtual plots within the Metaverse project are mostly used for commercial purposes such as information display, retail, and social interaction.

Will you definitely make money?

Investing in virtual land certainly has the opportunity to make money, but it is also inevitable that you may lose money. In fact, the risks of this type of investment target are not small, and some wild projects are even more risky.

Take the three pieces of virtual land purchased by Li Junjie on the Decentraland platform in 2021. He spent about 783,000 yuan to purchase these plots of land. In less than a month, the total price fell by nearly half, and the total loss reached about 300,000 yuan.

It can be seen that the investment risk of virtual land is still quite high.

When these virtual real estate projects develop well, investors continue to pour in and the value of virtual land naturally rises. However, once a reverse trend occurs or the project encounters unexpected risks, it may become worthless.

Of course, some virtual real estate projects still performed well. For example, on the same day that JJ Lin purchased three pieces of virtual land in Decentraland, a piece of land on DCL was sold at a sky-high price of US$2.43 million. A few days later, a piece of virtual land on TheSandbox set a new record at US$4.3 million.

Generally speaking, risk and return are always proportional.

Can ordinary people play this?

In addition to big stars like JJ Lin, business giants such as Microsoft and Disney have also entered the metaverse and set their sights on virtual real estate. More and more investment companies have begun to snap up virtual land in metaverse projects such as The Sandbox.

In this case, is it suitable for ordinary people to invest in this popular project? To be honest, it is not recommended.

For companies and celebrities who are "not short of money", even if virtual land involves high investment risks, there is a high probability that they can make money. Even if they lose money, it will not be a serious loss.

But most people don’t have this confidence. If they want to make money by “speculating on land” in the virtual world, they have to invest almost their entire fortune, or even more. Once a loss occurs, they will certainly not be able to bear it.

Therefore, instead of taking huge risks to be a "leek", it is better to work hard on some more secure and lower-risk metaverse projects.