The social media they no longer seem to be as profitable for Target (Facebook) after the series of criticisms and government interventions for the real use they give to the data of their users around the world. For this reason and despite a Failed attempt to create its own cryptocurrency, Mark Zuckerberg’s firm prepares new plans to create virtual currencies, tokens and financial loans according Hannah Murphy at Financial Times.
The company is looking alternative revenue streams and new features that can attract and retain users, as the popularity of their main social media products like facebook and instagram. A trend that threatens their 118 billion dollars a year and a business model based on advertisements.
The financial arm of the firm, Metafinancial technologieshas been exploring the creation of a virtual currency for the metaversethat the employees have called internally “Zuck Dollars”, according to several people familiar with the efforts.
It is unlikely to be a blockchain-based cryptocurrency, some people said. Instead, Meta leans toward the introduction of tokens in the application that would be controlled centralized way by the company, similar to those used in gaming applications, such as currency Robux in the popular children’s game Roblox.
According to company memos and people close to the plans, Meta is also looking into creating the so-called “social tokens” or “reputation tokens”, that could be issued as a reward for significant contributions in Facebook groupsfor example. Another effort is to “creator coins” that could be associated with influential people individuals on your Instagram photo sharing app.
Meta has also been exploring more traditional financial serviceswith a focus on helping to provide small business loans at attractive ratesaccording to several people familiar with the initiative. While nothing is planned immediately, the company has previously held talks with potential lending partners, one of the people said.
Most of the efforts are in the early stages of discussion and could change or be abandoned, although their plans to integrate non-fungible tokens or NFTs in their applications they are more developed. Zuckerberg confirmed an earlier Financial Times report that Instagram would soon start supporting NFT.
According to a memo shared internally last week, Meta plans to release a pilot to publish and share NFT on Facebook in mid-May. This will be “quickly followed” by testing a feature that will allow membership of Facebook groups based on owned by NFT and another to mint NFT.
NFTs can be monetized through “rates and/or advertisements” in the future, according to another internal document. Facebook declined to comment.
Meta lost more than $220 billion off its market valuation in February the day it revealed users were spending more and more time on newer rivals like the short-form video app tik tok.
Recently, the company has sought to find other sources of income and support the electronic commerce on the platform, delving into the cryptocurrencies and blockchain technology. Its Big Tech rivals, such as Google and Applethey have been more cautious in diving into nascent space.
But the push has been plagued by setbacks and regulatory scrutiny. Earlier this year, the global cryptocurrency project he spearheaded, diemwas liquidated and its assets were sold to a Californian bank, silver doorafter the US regulators refused to give the green light to the pilot project for reasons of monetary stability and competition problems.
Amid internal frustrations, the financial division of Meta has suffered what a former employee described as a “mass exodus” staff in the last six months. his boss, david marcushe left late last year, along with key engineers, compliance staff and nearly his entire legal team.
Those that remain are researching how to create or support digital currencies in their metaverse, a virtual world full of avatars that Zuckerberg hopes will eventually generate billions of dollars in trade in digital goods and services.
Staff are now trying to find the least regulated way to offer a digital currency, two people said, with a non-blockchain-based digital token emerging as the most attractive option.
Virtual currencies are nothing new for Meta
It would not be the first time that Facebook has introduced a currency of this type in its ecosystem. He launched Facebook credits in 2009a virtual currency which allowed users to make in-app purchases, usually in games like Farm. This represented the 16% of income at the time of its initial public offering in 2012, according to Barclays, but it was closed in 2013 because it was too expensive to maintain.
In a memorandum at the end of January, the new head of Meta’s finance division, stephane casrielwrote: “We are making changes to our product strategy and roadmap…so we can prioritize building the metaverse and what payments and financial services will look like in this digital world.”
Kasriel, who replaced Marcus when he left the company at the end of 2021, said the company would “accelerate” investments to facilitate payments within WhatsApp and Messenger and “help creators to monetize your activity”, for example, via NFT.
He also outlined plans to merge your wallet for Facebook Payyour existing peer-to-peer payment system that does not use blockchain technology, with Novi, the digital currency wallet that was initially supposed to house the Diem coin.
“The wallet will offer payments, identity, and digital asset management within the family of apps and Reality Labs, its virtual and augmented reality arm, and over time to other apps/sites,” Kasriel noted.
Meta and the Web3
Where some of Meta’s efforts are focused on digital payments, other efforts are part of broader plans to use blockchain technology to introduce a further “decentralization” on their platforms, amid growing turmoil in Silicon Valley around the so-called web3 movement.
Web3 advocates generally seek handle distributed ledger technology to allow users a greater control, ownership over your data and disintermediate Big Tech groups that typically monetize that data as part of their ad-based business models.
But Meta seems to be adopting some ideals from Web3. is exploring if store data on a blockchainhow it could give users more control over their digital identity and whether their identity or accounts can be transferred or used on other platforms beyond Meta apps, according to a planning document.
Meanwhile, his plans to reward users for credible content with “social tabs” could allow Meta is removed as a central content moderator and give Facebook communities more power to moderate themselves, according to the document.
Target (Facebook) closed Wednesday’s session at $223.30 and the latest moving average crossover, the 70-period below the 200-period moving average, would give us a bearish signal. Not forgetting that it is still below the last bearish gap in February. Meanwhile, most Ei indicators are bullish.