There are several cryptocurrencies featuring one of the internet’s favorite dog breeds, the Shiba Inu, but only one is in the midst of an initial land sale for its new metaverse. SHIB: The Metaverse is a project born from the SHIBArmy, a community for wearers of the shiba inus piece of money (SHIB 1.06% †as well as other coins and tokens belonging to the same ecosystem.
When I first heard they were launching their own metaverse with land for sale, my ears perked up. However, there are several reasons why I don’t opt for virtual real estate in SHIB: The Metaverse at this point.
1. Lack of a development roadmap
While members of the SHIB Discord assure me that they mostly operate without a network, I am a relatively conservative investor (for someone involved with cryptos and metaverse spaces). I like seeing that there’s a solid plan and I can actually sit down and put together some numbers about what the future of a platform could look like.
Unlike decentralized (MANA -0.98% †documented dead and open to investors for years, or the sandpit (SAND -0.82% †whose creators have a long history of developing games in the open world, I don’t see enough evidence yet to convince me that I understand what SHIB: The Metaverse will look like, or how it will behave.
This matters when it comes to metaverse real estate. For example, some platforms will show everything in the world around a property at once, so you are in front of a metaverse cafe, but you can see the billboards across the street, the shops next door, etc. as in the real life. Others just display the specific lot you’ve chosen to explore, in which case, say, a billboard company might not do very well because you can’t see anything but the project you’re committing to.
I don’t know what perspective the platform will provide, and I don’t think anyone knows yet. The developer of the software has not been announced at the time of writing on April 13, 2022. For some metaverse real estate companies, this detail may not matter, but for others, it may not matter. For that reason alone, now is definitely not the time to buy. As they say, the devil is in the details. It’s a detail that makes a huge difference.
2. He doesn’t use his own room
SHIB: The Metaverse was a great opportunity to bring consistent usability to the Shiba Inu portion. Instead, metaverse property purchases are secured with a token called LEAVE ALONE and bought with Ethereum† The developers explain that this is because they plan to cash out all sales in stablecoins (cryptos backed by real currency) and fear devaluing the Shiba Inu token.
It may be a real risk, but it’s also a step that gives the feeling that this project is even more in the idea phase and less in the practical phase. For a real estate investor, we need to know what we are buying, who we are buying from and what the vision is. A lack of documentation in a new world and the refusal to use the native currency makes me think that this project still has a long way to go, despite the hype and the very genuine dedication of the SHIBarmy.
3. The SHIBArmy itself
Many cryptocurrencies are developing their own following. It’s completely natural and normal, and it generates a sense of community. If there’s no reason for people to hang out, a metaverse platform is just an empty program with nothing in it. Having a pre-built community is definitely a plus for this metaverse project.
However, this can also be problematic if you have a close-knit community that is still relatively small when it comes time to sell real estate. Only a percentage of SHIBArmy members will be both interested and willing to buy virtual real estate in this new world at this point. Currently, sales are limited to Shiboshi NFT holders, of which only 10,000 have been made. Ironically, that’s probably great for Shiboshi holders, but it can create a club that’s too exclusive to really fuel the real estate economy of a metaverse platform.
For now I’m staying out of SHIB: The Metaverse
I have some SHIB coins and bought them last year mostly out of curiosity, but until I can see a more solid vision of what SHIB: The Metaverse wants to be, I can’t approve a purchase there. Once a game developer is safe and a clearer picture of what kind of platform it is and how it will work, that story can change.
After all, we are first and foremost real estate investors. With this we need to know that what we buy is a property that we can develop on our own or that someone will want to buy what we have. Blindly buying these virtual lands can get you a decent price (provided the metaverse platform does), but it’s like buying fallow land without knowing if you can fit there, operate utilities or if it’s already been explored .
There are simply too many unknowns to get a clear picture of what the highest and best uses of these properties really are and the costs involved in developing them.
This article represents the opinion of the author, who may disagree with the “official” endorsement position of a high-end Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.