I wondered if anyone had purchased any virtual land or metaverse land yet?
In our crypto portfolio a small part is dedicated to what I used to refer to as “sh__coins” but now more reverently refer to this part as the “three zeros strategy”. It is three zeros because any holding associated with this strategy needs to have a possibility of becoming worth 10X, 100X or even 1,000X of the buying price.
There are few criteria that govern whether or not we seriously consider this as an “investment”.
1 In all, the contributing investments may not exceed 10% of our crypto portfolio in total
2 Any specific “three zero” investment must not exceed 1% of total portfolio value
3 At first opportunity for the crypto to double, we sell half and invest it in another “three zero” opportunity or park it in stable coin funds if we don’t have an immediate use for it.
I have decided to add a further criterion to the mix when it comes to that investment being a NFT (a piece of land).
4 It must have a future plan to earn income, and it must be possible either passively, or with active participation to earn a headline target rate of 20% per year on original cost.
Just before new year, we participated in an initial offering for a new game, not yet released, on the Harmony (ONE) network for a new game called Tranquillity City.
I had no plan at all to participate in virtual land ownership, and the only reason I took this opportunity was because of the extremely low transaction cost of Harmony, and the relatively huge success of the first gaming app on their network - DeFi Kingdoms.
I watched a video of some beta tests with block characters wandering around the city, but that was all. We can now log on to the game and view our owned assets. So four more NFTs to our name, and growing fast. Our other NFTs have made an impressive start to income generation. Though they require daily attention, it seems they will be generating up to 10% per month of their purchased value, but I am expecting a slowdown of their daily, weekly or monthly income earning potential just so I don’t get disappointed.
Here is a link to a developer vlog. I find this kind of pre-release communication excellent. I am imagining renting out our apartments and having to run around to the flats to collect overdue rent, and being able to sledge hammer the druggies if they haven’t paid their rent instead of having to go to court and fill in a section 21 form and turn up in court to get permission to evict bad tenants. Love this virtual world.