Metaverse Mortgages: They are now a thing. You can risk it all for a corner of the metaverse.
A company called TerraZero Technologies Inc has just provided the first-ever metaverse mortgage. It was used to buy virtual real estate within the metaverse.
The ‘land’ purchased was in Ethereum-based metaverse platform Decentraland.
TerraZero say that metaverse mortgages “provide for a greater number of people to acquire virtual real estate.” Are we really getting into debt for virtual land now? Is this what the metaverse was really designed for? Getting into debt in new and exciting ways? The mind boggles.
TerraZero Technologies call themselves a “vertically-integrated metaverse technology company.” While the company didn’t provide all of the financing to buy the land parcel, they provided most of it.
How it Works
Clients of TerraZero who intend to finance the purchase of virtual real estate (represented as a non-fungible token) will use the client’s NFTs as digital asset collateral.
If you want one of these mortgages, you can get yourself to the TerraZero platform. Here you can can explore offerings and listings. You can get information about land size, location, and applicable prefab build elements.
It is also here that you can also run your NFT collection by the mortgage broker to see what you can acquire using your stash. If you decide to take out a mortgage, and sign on that dotted line, TerraZero will hold the land NFT as the registered owner until the loan is paid back.
Simultaneously, TerraZero grants the client ‘deployment rights.’ This means that the client can build on their land, organize events, run digital storefronts, and host their internal company office right away, even though TerraZero technically own the land. All clients have to do is make monthly payments until the mortgage is paid off. Then the virtual land (NFT) will be fully transferred to the client.
Metaverse Mortgages: The background
TerraZero was founded by Dan Reitzik. He is a co-founder and former CEO of DMG Blockchain Solutions Inc, who are Bitcoin miners. TerraZero owns digital real estate and provides offices and services to those interested in the metaverse. They acquire, design, build, and operate virtual assets and solutions to monetize the metaverse ecosystem.
Reitzik said that TerraZero’s vision is to build and provide the tools that bridge the real world with the metaverse. “An entirely new economy is emerging. We want to offer entrepreneurs and others similar products and services for the metaverse that are available to them in the real world. Mortgages and financing availability will expedite the development and adoption of the metaverse, and we are excited to be at the forefront of this new and exciting economy.”
If anyone has ever lived through a real-life property bubble, they might just say that this smells like something similar. Others may say fortune favors the brave. Whichever school of thought you are from on this, there’s no doubt that we are all in new territory.