Illuvium defies bearish trend with $72 million digital land sale

Illuvium defies bearish trend with $72 million digital land sale

Illuvium defies bearish trend with $72 million digital land sale

Ethereum-based game Illuvium has sold plots of digital land for in excess of $72 million in a recent NFT-based sale.

The sale commenced last Thursday, with 20,000 plots of digital land sold to prospective players and investors. The corresponding NFTs run on Immutable X, an Ethereum-based layer 2 platform designed for cheap, fast transactions for gaming NFTs. NFTs are being used in the GameFi space to prove ownership of digital land, avatars, skins and weapons.


Smooth sales process

The NFT sale seems to have gone smoothly in contrast to Yuga Labs recent Otherside mint which clogged up the Ethereum network, causing transaction fees to go into thousands of dollars temporarily. Illuvium followed a dutch auction format for the sale, with starting prices ranging from 2 ETH for Tier 1 plots and 80 ETH for Tier 4 plots. Ultimately, the project intends to sell 100,000 digital land plots. 4,018 ETH from the sale will be redistributed to holders who have staked Illuvium’s native ILV token.

Co-founder Kieran Warwick tweeted out his satisfaction with the process, stating: “$38 million sold so far and only $200K spent on gas. I guess dutch auctions aren’t bullshit after all”.

Real world utility in GameFi

The sale is all the more remarkable when you consider that we seem to be in the midst of a crypto bear market. It may be that sectors like GameFi will be the ones that lead us through this period. What is particularly encouraging is that as blockchain becomes more and more embedded in gaming, it becomes more and more about real world use and utility rather than speculation.

While community reaction overall seems to be positive, one community member expressed concern about the amount raised relative to the status of the project. At the time of publication, Illuvium’s ILV token has a market capitalization of $176 million.  Meanwhile, the game is not fully developed, but is currently in beta.

Regardless of whether this project has gotten ahead of its skis from a valuation perspective or not, it is encouraging that these land purchases are a necessary part of the game. Land in Illuvium allows owners to extract a critical resource (fuel) which is required for gameplay. Therefore, these NFTs have utility, as will the in-game items like NFT-based avatars.

The open-world exploration and auto battler game is scheduled to launch on macOS and PC later this year. Illuvium’s in-game marketplace was launched for the land sale. The project intends to extend its use to also cover the trading of the game’s NFT-based collectibles and gameplay items prior to the official launch of the game.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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