Diversified investment in virtual land and DAO (TheLandDAO)

Summary: a good opportunity to make a diversified investment in already established Blue-Chip virtual land projects; the project is at a very early stage of its development and has multiple utilities and flexible exit options

Project description:

TheLandDAO is a utility-focused NFT collection which has two mechanisms for value creation: 1) diversified investments in land and related assets in established and newly created Metaverses 2) creating its own Metaverse platform with its own digital currency. The project was launched in the end of December 2021, public mint took place in the middle of January 2022 (all tokens were placed within one hour or so!). At present, the wallet for investments in land is about ETH 400, with already made investments in the most popular virtual land platforms (NFT Worlds, Decentraland, the Sandbox, WW3, etc), and about ETH 350 for future investments.

Why this is a good investment:

With major companies (Meta, Amazon, etc) announcing their plans to heavily invest in Metaverses the price for land may go up quickly. However, making direct investments in specific 1 or 2 land plots for Wall Street Chads project could be risky since we will not be able to diversify investments in land by acquiring multiple assets (limited amount of funds available). Buying tokens of a project that focuses on diversified investments in land can solve this issue – we will be able both to participate in this lucrative segment and to achieve proper level of diversification.

Why now is a good time to invest:

The developers of the project are pretty much focused at the moment on technical side. Besides that, per my direct communication with the team, they do not see (and I agree with them) any value for the project in marketing and creating ‘hype’ around this project to increase the price of its tokens right now – the value of NFTs will go up as they progress with implementation of their strategy. As the result, many buyers of NFTs who were expecting quick profits are leaving the project that makes these NFTs undervalued. The tokens will start increasing in value as the project will continue to actively accumulate assets and move towards the launch of its own Metaverse platform.

Utilities that the project provides:

1. participation in the upside of virtual land market (with diversification of investments);
2. generation of $RENT token (its specific use is still being discussed right now; potential uses include purchase of WL spots in virtual land projects that will partner with TheLandDAO, integration of these tokens into partner’s world, etc.).

Specific proposal:

The project issued 4 types of NFTs: Genesis and Tier 1 – 3. Genesis NFTs provide the maximum utility (have more voting power and generate much more $RENT). Current price of Genesis NFTs of TheLandDAO is about ETH 0.15 (not that far from initial mint price!). I propose to buy Genesis NFTs for the total amount of ETH 1 (there should be around 6 of them at current price) with investment horizon of at least one year. I propose to decide on the timing of exit from this project in one year (it may happen that it would make sense to have at least some of these tokens forever).

Potential exit options that are imbedded into the project:

1. selling NFT on secondary market;

2. burning NFT through a twice-a-year burning mechanism. It works in the following way: twice a year the valuation of the project portfolio is conducted, 30% of this value is allocated to Genesis NFTs (even though there are just 1,500 of them out of 8,888 – another reason to buy Genesis tokens but not Tier 1 - 3) with the rest 70% being allocated to Tier 1 – 3 tokens, and any holder can burn his token for corresponding share in the portfolio.

Bottom line:

this is a unique project for us since we will be able to:

• acquire a portion of ownership in the Blue-Chip virtual land projects that we cannot afford to buy directly;
• have a diversified approach to investments in virtual land;
• get additional utilities;
• have flexible exit options.

proposed:

• to buy Genesis NFTs for the total amount of ETH 1 (at current price of about ETH 0.15 per token there should be around 6 of them);
• to make the deal as soon as possible;
• consider this as a long-term investment with investment horizon of at least 1 year (the project needs time to gain value);
• make a decision on exit options in 1 year.