Illuvium brought in more than $72 million in land sales

Illuvium (ILV), an upcoming Ethereum-based role-playing game, has completed its NFT land sale in just a few days of airing, raising over $72 million.

The open sale that started on June 3 ended up seeing nearly 20,000 NFT land lots sold to potential investors and players. Illuvium’s land NFTs run on Immutable X (IMX) – a layer 2 scaling solution for Ethereum that enables cheaper, faster, and more energy-efficient transactions.

Basically, the game world of Illuvium will have a total of 100,000 pieces of land, the holders of which will receive more preferential rights in the game. Illuvium will launch on Windows and Mac computers later this year.

Of the 20,000 plots initially offered, 29 will be kept by the developers for future giveaways, while two Level 5 plots, the most valuable tier in the game, will each be auctioned off at prices using the standard auction format.

For the 19,969 plots of land that were sold, Illuvium used a Dutch auction, whereby the price of each lot decreases with each sale. Prices start at 2 ETH (currently $3,700) for Tier 1 lots, 6 ETH ($11,100) for Tier 2, 20 ETH ($37,000) for Tier 3, and 80 ETH ($148,000) for Tier 4.

In total, Illuvium raised more than $72 million in this sale. Additionally, the Illuvium team said around 4,018 ETH (over $7.4 million) will be redistributed to the game’s ILV token holders. Meanwhile, 239,388 sILV2 tokens (worth around $22 million) will be burned or destroyed forever, thus contributing to a decrease in the total project supply.

In fact, virtual land sales have generated hundreds of millions of dollars for blockchain-based metaverse games like The Sandbox and Decentraland. A report from MetaMetric Solutions reveals around $501 million worth of virtual land was sold throughout 2021, with another $85 million in January 2022 alone.

However, interest in the metaverse has plummeted after a cycle of hype fueled by Facebook’s name change to Meta. Transaction volume in the virtual world has decreased by 12% compared to Q4 of 2021, reaching over $430 million in Q1 of 2022. The average price of lands in Decentraland and Sandbox has plummeted 40%, while transaction volumes on both platforms have dropped 20% and 60% respectively.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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