In late 2021, Facebook underwent a comprehensive rebranding effort, changing its name to Meta to reflect its interest in the virtual reality (VR) platform. Many were taken aback by Facebook’s sudden pivot, but given the company’s track record with new technologies. However, it would have to enter the Web3 competition sooner or later.
How’s Facebook’s Web3 Venture Going?
Following the failure of a Messaging app payment method in the online payment industry, Meta’s crypto ambitions emerged in 2019. The internet company announced its intention to release a worldwide virtual currency backed by various national fiat currencies. With over two billion monthly users across Whatsapp, Facebook, and Instagram, the company hoped to launch a worldwide online payment network.
Regulators worldwide were dubious of Facebook because of the asset’s haziness and the company’s checkered past when protecting users’ personal information. Some American lawmakers likened it to a script, while others swore they would never allow it to be issued. Moreover, there was no improvement to the fledgling payments project after switching the Libra to Diem. And the stablecoin ended operations for good in February of 2022.
Meta has redirected its efforts on Web3 to establish itself as a frontrunner in the Metaverse. As a result, meta has invested billions in VR headsets and other specialized gear. Meta’s metaverse bet, however, has begun to appear wobbly with the beginning of the slowing market.
According to a story in the Wall Street Journal, the Diem group, a group of businesses developing a crypto-based payment platform, has sold its technological property to Silvergate Investment for $200 million. One of the organization’s original members is Meta, previously known as Facebook. Diem was Facebook’s most audacious cryptocurrency wager yet.
Facebook’s crypto initiative, formerly known as Libra, was announced in 2019. Up until now, both Diem and Facebook have repeatedly reduced their goals. The initial concept behind the Libra crypto was to create an entirely new currency pegged to a selection of existing fiat currencies and equities.
The Libra Association has always been met with hostility from government agencies and central banks. As a result, many people predicted that Libra’s currency would severely threaten sovereign money. In addition, it would have been an opportunity for inflation, shadow banking, and evasion of monetary policies.
And that is why Libra abandoned its idealistic stablecoin system in favor of a more practical one. The Libra Association opted to release several stablecoins pegged to a single currency rather than create a whole new coin from scratch. So, for example, a LibraUSD was meant to be equivalent to one US dollar at all times. Similarly, LibraGBP, LibraEUR, etc., would be appropriate.
Facebook has bought Oculus Rift VR, a virtual reality headset manufacturer, for $2 billion. The company’s goal is to provide new experiences to the platform beyond gaming.
The Oculus Rift equipment, developed by Oculus Rift VR, has been presented at several technology conventions over the last year. Having displays within wearing eyewear enables gamers to have a truly “immersive” gaming experience.
Facebook CEO and co-founder Mark Zuckerberg issued a statement saying the company is working on making Oculus more than just a gaming platform. He mentioned “enjoying a sitting courtside at a game,” learning in a classroom, and even creating an interactive virtual doctor’s consultation as possibilities.
Moreover, he says, “This is essentially a brand-new communication platform. When you’re fully present, you and the people around you may enjoy free time and space together. Envision a world where internet sharing encompasses not just individual moments but complete journeys and adventures shared with peers.
Meta Targets Finance With ‘Zuck Bucks’
As Facebook’s parent company continues to pursue its financial goals despite the failure of an attempt to establish a virtual currency, Meta has devised plans to include virtual currencies, tokens, and loan services into its applications. These plans were developed in the wake of Facebook’s acquisition of Meta.
As the popularity of the company’s primary social media products, such as Facebook and Instagram, continues to decline — a pattern that threatens the company’s $118 billion-a-year commercial revenue model — the company, headed by principal executive Mark Zuckerberg, is searching for innovative income streams and additional features that can retain and attract users.
According to multiple persons who are acquainted with the activities, the financial branch of Facebook, known as Meta Financial Tech, has been investigating the possibility of developing a digital money for the metaverse. The workers of Facebook have unofficially called this currency “Zuck Bucks.”
Some of the individuals indicated that it is quite improbable that this would be a coin that is dependent on the blockchain. On the other hand, Meta is considering implementing in-app assets that will be centrally managed by the firm. These tokens would be comparable to the ones used in gaming applications like the robux money in the famous kid’s game Roblox.
Meta NFT Sharing on Facebook and Instagram
Instagram’s parent company, Meta, revealed on that the long-awaited introduction of its digital collectable feature to Instagram’s millions of U.S. users has finally come.
Instagram’s NFT capability has been under trial since May, but recently, it is accessible to all U.S. users.
Users may link their Coinbase, Rainbow, MetaMask, Dapper Labs or Trust purses to Instagram. A blog post explains how Instagram users may automatically share their NFTs to respective Facebook pages.
CEO Mark Zuckerberg recently announced the sale of a non-fungible token (NFT) representing a boyhood baseball card he had for $105,000.
Meta’s Biggest Challenge
The world’s most popular social networking platform, Meta, is attempting to leap from its Web2-based roots to the decentralized Web3 environment. However, numerous industry professionals think that Meta’s hopes for the future of the Metaverse are unrealistic after the many setbacks it has already encountered with its stablecoin experiment.
Unlike previous stablecoin efforts, Meta’s metaverse ambition faces no legal hurdles, yet, the business is still falling behind the Web3 race. It is because, unlike in the prior decade, when Meta could purchase rivals or clone their new features, they now have to develop this complete platform themselves.
Amid mounting worries, the company has secretly cut its employees by 10% after losing $2.8 billion on Reality Labs. Moreover, the company’s metaverse effort may continue to encounter challenges in the future due to early deficits in its highly funded VR hardware sector, deteriorating market conditions, and Facebook’s poor track record of protecting users’ private data.
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