The virtual island includes a gigantic abandoned castle and beautiful beaches which are described as ripe for developing beachfront property.
Deathifier will make money from his investment as he is able to tax other gamers who come to his virtual land to hunt or mine for gold.
He has also begun to sell plots to people who wish to build virtual homes.
"This type of investment will definitely become a trend in online gaming," said Deathifier.
The Entopia economy lets gamers exchange real currency into PED (Project Entropia Dollars) and back again into real money.
Ten PEDs are the equivalent to one US dollar and typical items sold include iron ingots ($5) and shogun armour ($1.70)
Gamers can theoretically earn money by accumulating PEDs through the acquisition of goods, buildings, and land in the Entropia universe.
MMORPGs have become enormously popular in the last 10 years with hundreds of thousands of gamers living out alternate lives in fantasy worlds.
Almost 200,000 people are registered players on Project Entropia.