Digital real estate in the metaverse: An empirical analysis of retail investor motivations

Lennart Ante, Friedrich-Philipp Wazinski and Aman Saggu

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: This paper investigates retail investor motivations for digital real estate ownership in the crypto-metaverse. Utilizing a detailed financial behavior survey of metaverse landowners' intrinsic and extrinsic motivations, we apply principal components analysis to uncover four distinct motivational groups: (1) Aesthetics and Identity, (2) Social and Community, (3) Speculation and Investment, and (4) Innovation and Technology. Our findings reveal that age, education, investment knowledge, risk-taking, and impulsivity significantly influence investor group membership. This research provides valuable insights to investors and developers, underscoring the potential of a platform to attract retail investors with speculative intentions, engagement longevity, and passive or active trading characteristics, contingent on unique crypto-metaverse attributes.

Keywords: Metaverse; Digital real estate; Virtual land; Non-fungible tokens (NFTs); Retail investors; Cryptocurrency (search for similar items in EconPapers)
JEL-codes: C10 C38 G41 R39 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Digital Real Estate in the Metaverse: An Empirical Analysis of Retail Investor Motivations (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006712

DOI: 10.1016/j.frl.2023.104299

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