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Technology

As Metaverse Land Prices Plummet, Mark Cuban Says Buying Digital Land Is 'the Dumbest Sh*t Ever' (fortune.com) 70

Mark Cuban, the billionaire Dallas Mavericks owner and avid crypto enthusiast, is not sold on the metaverse. "The worst part is that people are buying real estate in these places. That's just the dumbest shit ever," he told the crypto-themed YouTube channel Altcoin Daily this past weekend. From a report: Cuban's comments come as the hype surrounding the metaverse -- a term that loosely describes an emerging virtual world where people can hang out, play, and shop -- seems to be cooling. Last November, Facebook changed its name to Meta, spurring a flurry of excitement about the potential of the metaverse, which fueled a land grab for digital plots in so-called metaverse platforms created by the likes of the Sandbox and Decentraland.

These platforms enable investors to buy land as an NFT, which can be developed with virtual buildings or experiences or resold on secondary markets like NFT exchange OpenSea. Companies like Warner Music Group, Atari, Samsung, and Adidas have all bought digital land -- a move that Cuban, based on his latest comments, appears unlikely to follow. Cuban also isn't buying the central claim of metaverse land speculators that scarcity will make these digital plots valuable. "It's not even as good as a URL or an ENS [Ethereum naming service], because there's unlimited volumes that you can create," he said during the YouTube interview. Despite being an investor in Yuga Labs, the owner of popular NFT collections Bored Ape Yacht Club and CryptoPunks, Cuban said he was not a fan of the company's land sale, which raised about $317 million for its metaverse platform Otherside in April. "I still thought it was dumb to do the real estate. That was great money for them, you know, but that wasn't based off a utility," he said.

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As Metaverse Land Prices Plummet, Mark Cuban Says Buying Digital Land Is 'the Dumbest Sh*t Ever'

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  • by Caro Cogitatus ( 7226002 ) on Wednesday August 10, 2022 @11:50AM (#62777626)
    ...thinks something is "the dumbest thing ever". Gotcha. Thanks for that.
    • by Petersko ( 564140 ) on Wednesday August 10, 2022 @12:10PM (#62777668)

      Well, you can look at it in a different light. We've got somebody willing to buy into something tangentially connected, and even HE thinks this is stupid.

      • by shanen ( 462549 )

        Well, okay as an FP branch, but the joke I was searching for was more along the lines of "Hold my beer". But I see the moderators have apparently been satiated already?

        And yet Mark Cuban is too rich to care. He probably has a designated and professional "beer holder" following him around for any occasion where he feels the need to do something stupid with his couch cushions' money.

        "If you think buying digital land is stupid, how'd you like to see my huge NFT collection?"

        (And no, I'm not giving up my day job

        • Hmmm... talking comedy, I think you should take another swing at your already karmically maxed-out post in pursuit of "hold my beer". I thought it was funny, but I didn't get to your destination. Can we revise it?

          • by shanen ( 462549 )

            I wish I could remember the joke about "I wouldn't recognize a funny comment if it bit me in the keyboard."

            Will you settle for the old goodie?

            http://www.bash.org/?835030 [bash.org]

            It's short, but can't be cut-and-pasted into Slashdot without editorial repairs. How dare bash.org use "special" characters? But for a good time, click on "Random" to consume (or waste) some of yours.

      • by jythie ( 914043 )
        I suspect it ls less that he thinks his stuff is worthwhile and meta land is stupid, and more that his investment depends on hype and there is less of it to go around, so time to encourage the 'fud' for the competition.
    • Precisely. He's an expert.
    • He hasn't figured out this grift yet and is concerned that other people may take money that is rightfully his (but currently in the hands of rubes).
    • It's kind of like saying "you know it's bad when even the dog won't eat it."

    • You can use your NFTs to decorate the walls of you un-real estate
  • by Pinky's Brain ( 1158667 ) on Wednesday August 10, 2022 @12:20PM (#62777696)

    As long as the VR world is actually popular, people who want to flaunt their wealth or sell/advertise something will likely want prime real estate. The VR world will likely have teleportation portals rather than completely free teleportation, so there will be some travel/discovery involved in getting any where.

    The problem is creating a popular VR world.

    • by Opportunist ( 166417 ) on Wednesday August 10, 2022 @12:29PM (#62777722)

      The problem is the same as with the rest of the web: Escaping the slew of advertising and getting where you want to be.

    • Why do you need 'prime real estate' in VR, when everything can be bigger on the inside than it is on the outside?

      • You are thinking of Metaverse in the way you are GOD and can build anything you can imagine on your plot of land.

        Corporate on the other hand, they are thinking you are a money tree that needs to be fleeced and will severely cripple what can be done on your plot.

        If things really take off, you will get real world laws dictating how the land can be used. Then comes the permits, licensing fees, taxes, etc, just like real life. That will be the only "official" Metaverse. Any other area is just imitation or downr

        • Nah, the future ain't Cyberpunk. Companies will not take over, they will just compete.

          Trying to lock you into their VR world and monetize you, but not to the point of driving you away. Also it's an open question how large the audience really is. I think an expertly coded and run VR version of Second Life could support a large economy, but not the size to satisfy Meta. It could always just be a niche.

      • Lure in window shoppers, put up billboards, to show off.

  • by superdave80 ( 1226592 ) on Wednesday August 10, 2022 @12:26PM (#62777708)
    So, why is buying bits of code from bitcoin, ethereum, etc. the wave of the future, while buying bits of code from the metaverse the 'dumbest shit ever'? How is this guy a billionaire?
    • by Tom ( 822 ) on Wednesday August 10, 2022 @12:33PM (#62777754) Homepage Journal

      How is this guy a billionaire?

      The same way most billionaires - connections and/or family, luck at the right moment, tenacity to make it stick, and once you're past the glass ceiling, other people tend to give you their money.

      • by jacks smirking reven ( 909048 ) on Wednesday August 10, 2022 @12:40PM (#62777774)

        luck at the right moment

        And for Cuban's case that had a lot to do with it, he got bought out during the height of the dot-com-boom by selling broadcast.com/audionet to Yahoo for $5.7B in stock. He at least seems aware of it though.

        Yahoo!'s costly purchase of Broadcast.com is now regarded as one of the worst internet acquisitions of all time. Broadcast.com and Yahoo!'s other broadcasting services were discontinued within a few years after the acquisition.[42] Cuban has repeatedly described himself as very lucky to have sold the company before the dot-com bubble burst. However, he also emphasized that he hedged against the Yahoo! shares he received from the sale and would have lost most of his fortune if he had not done so.

        • by SethJohnson ( 112166 ) on Wednesday August 10, 2022 @01:06PM (#62777840) Homepage Journal
          To provide additional context...

          Cuban's original Broadcast.com offering was a comprehensive collection of exclusive internet streaming rights to major league sports. The sales pitch was that Packers fans in Oklahoma could watch their favorite teams' games over the internet while local broadcasts only offered the local teams' games. Reality of it was, this was the era of the 14.4k modem and the video stream would have to be downscaled to a postage stamp and impossible to recognize things like a football let alone a baseball, etc. But he had ALL the contracts and that seemed like a valuable property to the Yahoo board of directors, who were really casting nets at that time to figure out how to make their own property generate revenue. He came out of that sale with $2b cash and plowed it into the Dallas Mavericks and HD.net. The former won a championship, the latter was an attempt to capitalize on cable high definition content while the other networks were still catering to standard def. Once everything else switched to HD, his network became devoid of purpose.
    • by jhecht ( 143058 ) on Wednesday August 10, 2022 @01:05PM (#62777832)
      You ask: "How is this guy a billionaire?" He finds greater fools
    • by dfm3 ( 830843 )

      So, why is buying bits of code from bitcoin, ethereum, etc. the wave of the future, while buying bits of code from the metaverse the 'dumbest shit ever'? How is this guy a billionaire?

      Because some people are convinced that there are still enough "bigger fools" out there willing to pay them for the bitcoin, ethereum, etc that they hold.

  • "real" estate (Score:5, Insightful)

    by Tom ( 822 ) on Wednesday August 10, 2022 @12:32PM (#62777740) Homepage Journal

    "The worst part is that people are buying real estate..."

    Shouldn't it be "unreal estate" or "fictional estate" or "digital estate" or something? It definitely isn't REAL in any sense of the word that's not coming out of the mouth of a marketing dude.

    • by shanen ( 462549 )

      Mod parent something? Maybe "unreal"?

      (I really like the idea of unreal estate and the unrealitor salespeople. (But I think "realtor" is a trademark?)

    • It's real in the same sense that having control over some area or thing that other people find desirable is something people value. Especially if this virtual real estate is unique and can then be sold later at a profit. It's like having gold in an MMO. It's usually tradable for real world money, therefore it has some real value.

      Being that it's from facebook/meta/whatever does drop it's value considerably but the idea still sounds neat or will be in the future.

      • by Tom ( 822 )

        But you don't have control in any sense of the word comparable to actual real estate.

        There is always the layer of the VR system, which is owned by someone else. That someone can at any time withdraw, change, modify, or do whatever the heck they want with your un-real estate. Sure, you can afterwards sue them for breach of contract, maybe. But factually, THEY have all the control and you have only whatever they grant you. You can't even sell it to someone else without them noting the transfer of ownership in

        • Replace them with government, what's the real difference? Sure, on a technical level, they could absolutely stop you from breaking a rule where as in meatspace you can go ahead and build your extension onto your house without a permit, but the city will eventually notice and you will pay dearly for not getting the permit.

          Even doing work inside of your home without a permit means that when you eventually sell, you legally can't say you have a 3 bedroom because you never got permits, etc.

          All the laws we have

          • by Tom ( 822 )

            Replace them with government, what's the real difference?

            Everything. I am in factual control of my property right now. The government can NOT just press a button and change that. Sure they can bring an overwhelming force and would probably win a conflict with superior firepower, but it's not automatic, it's not low-effort, and it requires a public display of force. Same with taking my legal rights.

            There's a HUGE difference between someone being powerful enough to enforce something, and someone being technically god and able to just do whatever they want without e

  • by zarmanto ( 884704 ) on Wednesday August 10, 2022 @12:46PM (#62777782) Journal

    The metaverse is a concept, not a single instance. It exists on servers around the world in a multitude of forms -- not all of which are VR based. Most people envision the metaverse as nothing more than a collection of video games -- and in a sense, even the more involved instances really are exactly that. From Minecraft [minecraft.net] to No Man's Sky [nomanssky.com], virtual world building has existed for years... and in both of these examples, the initial purchase price and a little bit of time and effort is all you are really required to invest in order to tap into virtually unlimited potential.

    Zuckerberg isn't some amazing visionary who just happened to wake up one morning with with this grand new idea that nobody else had ever conceived. He's just a guy who got his hands on an Oculus -- and was so enamored with the possibilities that he decided to buy the company. Then he watched Ready Player One and mistakenly thought he saw himself reflected in the character of James Halliday... so he decided to rename his own company to reflect his new personal mission. Then he realized that VR hardware at anything approaching affordable prices for consumers is an absolute money pit for the company that makes them... so he increased the price of his VR devices, without changing their features in any way. And even with that, he is almost certainly still many, many years away from turning a profit on anything related to either VR or the metaverse.

    So yeah... Cuban is absolutely right to shun Zuckerberg's particular "vision" of the metaverse -- but not necessarily for the reasons that he assumes.

  • Problem with Metaverse is it's All Social, and those who think Social is Everything are no less mental than those who think Social is Nothing. No man is an island, but no island is everybody neither.
  • by rlp ( 11898 ) on Wednesday August 10, 2022 @01:08PM (#62777844)

    Second Life 2.0

    • I know, right? Paying for unreal estate was dumb then, and it still is now.
      • Buying high and selling low was a dumb investment. Buying low and selling high is a smart investment and even after the crash of the hype, people have still been making money that way in Second Life. Also a lot of people just want to model stuff and put it in an online world for others to see, people will pay for that privilege because they get pleasure out of it. Which is also not dumb.

    • or, Second Second Life

  • So he's trashing it to drive the price down.
  • Can I get an NFT of Mark Cuban saying that and can I pay for it with crypto?

    'Cause that would be SO COOL! I'll put it right up there on my shelf with my Beanie Babies and Pet Rocks.

CChheecckk yyoouurr dduupplleexx sswwiittcchh..

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