Various sources indicate that Meta, previously known as Facebook, is working on virtual tokens. Consequently, some people have been left confused, especially since the last attempt to launch a cryptocurrency ended in failure, and earned Meta the ire of Congress.
The New Tokens are Not Blockchain-Based
It would appear that Meta gave up on ever launching a cryptocurrency; their latest plans to launch a digital currency will not be based on blockchain. These new digital tokens, which are called “Zuck Bucks” by Meta employees, will be used within the Meta metaverse.
According to a Financial Times report, these coins will be used as in-app tokens, which would be controlled by the company. They will work similarly to the Robux currency in the popular Roblox children’s game.
The Robux currency can be bought via the game’s app and can be used for upgrades or purchasing avatar accessories. Roblox has built a major business model around Robux, and Meta could be seeking to ride on some of that success with their metaverse.
The FT report also noted that Meta was working on plans for social tokens, or reputation tokens, which would be given to users for the contributions to the site’s social platforms, with a focus on Facebook. Additionally, Meta was working on creator coins, which would be given to influencers on Instagram.
Meta and Crypto
Meta has opted to distance itself from a blockchain-based crypto coin after its USD-backed stablecoin project faced fierce opposition from regulators across the world. Later on, an American bank bought the company’s blockchain-based crypto project, and that was the end of it.
For years now, Meta has been looking to develop new revenue streams outside of its traditional ad revenue. The reason for this is that ad revenue streams from its main products have been dropping. According to 2021 full-year performance data, Facebook lost a million active daily users in Q4 2021. In February, the company lost over 220 billion from its market valuation after the CEO said users were spending more time on alternative social media platforms like TikTok.
To avoid these problems, Meta has been trying to diversify its revenue streams such as offering small business loans at attractive rates. However, the FT report notes that most of these efforts are in the early stages.
Meta has not given up on the blockchain altogether, the report noted that they plan to launch NFT support across all their platforms, including Facebook. Zuckerberg announced back in March that Instagram would begin supporting NFTs over the coming months. The company also plans to add NFTs to Facebook at some point. Meta’s growing interest in the virtual world and blockchain-based innovations come as the company’s CEO has stated he believes the metaverse is the next chapter of the internet.
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