Cryptovoxels is in the process of selling more newly minted land as it expands out of its traditional territory. In recent weeks we have witnessed Proxima, Ceres, Trinity and now The Bronx, appear from beneath the sea which surrounds Origin City.
As each new island is born, the land on that island is sold off on a fastest-finger-first basis, every Tuesday at the same time.
There is always a big crowd of people waiting eagerly to buy low priced land on these new islands, usually selling out within minutes.
However, it is questionable how many of those buying land have any dreams of ever creating their own place on a paradise vox island.
In fact, there is a group of land flippers who turn up each and every week with zero intentions of ever adding any value at all to Cryptovoxels. They are there purely to line their own pockets and steal from legitimate buyers, and the further development of Cryptovoxels.
A Bronx Tale
A perfect example is the sale of land on The Bronx island, which happened less than 12 hours ago. Various land parcels were listed for a reasonable price of 1.2-1.8 ETH each, however, in some cases the transaction had barely been confirmed before it was listed on Opensea for double that. This is proof that this system is broken, and money going into the wrong hands.
This issue also runs deep. There are a total of 88 land on Bronx island…. today 16 of those are already listed for sale, which means that nearly 20% of land is being immediately flipped for profit.
Excluding the 50 ETH outlier bundle listing in the image above, when all these land parcels finally sell to those who actually want to build and create, but couldn’t make the initial land sale (which is at midnight European time) then the combined inflated prices now total over 17.5 ETH, or a little over $4200 at the time of writing. Not a bad profit for a few minutes work from the flippers (pop the cork, its champagne and McDonalds for dinner!) but not so good if you consider that this ETH could/should have been collected by Cryptovoxels and used to fund another developer for a month or two.
More worryingly, if you then consider that this fiasco is repeating itself week after week, only then does the true damage and amount of leakage become clear. This bucket has a big hole in it.
More Than Money
The idea behind listing land for such low prices was to make it more attainable for investors and creators with smaller budgets to get involved. A commendable approach, but it isn’t working. In fact, this is doing more harm beyond just the financial implications, with murmurs from several new potential buyers being left disappointed and frustrated after they were unable to buy in the land sale because flippers had bought so much. Maybe these new investors/creators will never return.
Selling new land in a Dutch style auction would immediately put a stop to this circus and help generate true value for the development of Cryptovoxels, allowing the CV team to achieve the maximum return for each of their land parcels. This way, every last ETH would be going where it belongs… into the Cryptovoxels coffers to fund quicker development, which would result in a better virtual world for everyone to enjoy, much sooner.