In just a few hours we will move into the tenth day of the Decentraland Dutch auction….and there’s a storm of epic proportions on the horizon. LAND investors, both new and old, have been patiently waiting for prices to fall to investable buying levels with baited breath…and that time is edging closer by the minute. Now all that is left is composure, coins and carnage.
So far we have seen a total of 132 LAND parcels sell for >20,000 MANA, which was expected due to the ‘countryside’ locations of the remaining unowned auction LAND. However, just these few sales have already resulted in nearly 3,500,000 MANA (approx 47 BTC, $180,000) being burnt.
With a remaining 9199 LAND parcels still up for sale, one has to wonder just how much MANA will be burnt once the auction is over, and how drastically that will affect the value of MANA token going forward.
The Domino Effect
Over the next few days we are likely to see FOMO like never before. This is potentially the last auction for the foreseeable future after all. Judging by historical LAND sales, it is probably a fair prediction that once in the attainable ‘buy zone’, LAND parcels will sell like hot cakes, burning MANA as they go, at a pace that may be hard to keep up with.
MANA Value – Early FOMO
Simple economics suggests that when demand outstrips supply, prices boom, especially in a short space of time. If the domino effect and FOMO starts to take effect early, it is likely many will rush to the exchanges to stock up and buy more MANA, realising that the budget they initially put aside will now only buy a fraction of what they had hoped.
MANA Value – Late FOMO
From another perspective, if LAND investors hold their nerve and don’t start buying until LAND auction prices reach really low levels, then the vast majority of prospective LAND buyers may realise that they can afford what they wanted, and then some on top. Under these circumstances, we could see very little change in MANA value, but a potential knock-on effect on the LAND marketplace boom, with investors deciding to pump their MANA into other, more premium LAND options.
In reality, there are potentially hundreds of different eventualities and ways the next few days can play out.
Whether you are buying to sell in the future, to build a new business in VR avoiding all the AFK red tape that comes with it, or just believe in NFT’s and crypto, we hope everyone taking part thoroughly enjoys the upcoming LAND auction fiesta. You are taking part in virtual LAND history here.