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arXiv · 2308.10309

Digital Real Estate in the Metaverse: An Empirical Analysis of Retail Investor Motivations

Lennart Ante·Friedrich-Philipp Wazinski·Aman Saggu
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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.

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Lennart Ante, Friedrich-Philipp Wazinski, Aman Saggu. 2023-08-20. Digital Real Estate in the Metaverse: An Empirical Analysis of Retail Investor Motivations. https://doi.org/10.1016/j.frl.2023.104299

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