Why swapping your collections in Upland might decrease their value in the long run
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Why swapping your collections in Upland might decrease their value in the long run

By TheTurbo | Upland Academy | 5 Jan 2021


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Introduction

In Upland players can collect properties and put them into various collections. The completion of a collection will provide additional UPX, the in-game currency. This bonus consists of a one-time completion bonus and a multiplier for the base rent which increases players earnings from all active properties in this collection. Furthermore, every player receives a collection badge after a new collection has been completed. While the earnings multiplier requires a player to actively own the respective properties, it is an achievement that will even remain visible after those properties have been sold to another player.

What is collection swapping?

This term describes the process of two players trading properties from a specific collection with the single goal to collect the one-time bonus and the collection badge. After this has been done both players will trade the same properties in reverse. Sometimes profits are shared, but this is not mandatory.

The rarity and value of virtual assets

According to the Cambridge dictionary the term rarity is defined as “something that is very unusual, or the quality of being very unusual”[1]. In terms of Upland this means that the fewer properties are available for one collection, the rarer it becomes. Likewise, the lower the number of players that have successfully completed a collection, the rarer it becomes.

The value of virtual assets in blockchain games is most often very subjective. This might be caused by the fact that it is a brand-new market and there won’t be many professionals who can really estimate the value of a virtual asset. As an example, if you want to buy a diamond from somebody in the real world you can go to a diamond broker who will evaluate it's quality before you buy it. In the virtual world, you will probably have a hard time finding a person that is qualified and trustworthy. Things might change in the future when this rapidly rising economic sector has further matured.

 

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Example of a rare collection in Upland

Short-term vs long-term value

Some players are more interested in short-term profits. They do not really care much about any long-term collection value nor the properties inside it. They are making money by not keeping assets for a long time. While this is a valid strategy for assets that are available in large numbers, it might have significant impacts if it is done with rare assets. Owners of rare collections should think twice before they allow other players to swap collections.

First of all, there is always a risk that the other player will not return the traded properties. Upland does not provide any virtual escrow system for collection swapping. It is always your own risk of trusting another player that you probably do not even know in real life. Additionally, swapping a rare collection enables others to also wear the collection badge. In other words, the more often a collection badge is worn, the less rare it becomes. As a logical consequence it might also reduce the value of actively owning such a collection.

Final thoughts

Upland is a game that offers freedom of choices. Players can decide with whom they will trade and what kind of assets they trade. If you own properties that are available in large numbers the impact of collection swapping on your long-term value might be negligible. However, if you own rare properties for very limited collections, you should think twice if you really want to decrease their rarity value by swapping them with others. Imagine you are a collector of luxury cars. Would you buy a rare car which has 10 owners in the registration document (even though each of them was just sitting in it once for 10 minutes) or would you rather buy a car that only had one owner?

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TheTurbo
TheTurbo

Creator of the Upland Academy https://upland.academy


Upland Academy
Upland Academy

The Upland Academy provides useful knowledge about the blockchain based game Upland, in which you can buy and trade virtual properties. In the Upland metaverse players can rebuild the real world. Did you ever want to own a famous property but could not afford it in real life? In Upland, sky is the limit.

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