Meta intends to integrate certain types of virtual money into its apps, such as Facebook and Instagram, and to integrate NFTs to generate new revenue streams, the Financial Times reports. Such a project would be very different from a blockchain-based cryptocurrency project like diem, which was born from Meta (at the time still known as Facebook) and then scaled back to be sold to Silvergate after various regulatory hurdles.
The version of the virtual currency that Meta intends to adopt is instead Much like platforms like Roblox or video games like Fortnite, i.e. completely under the control of Meta. In such virtual spaces, people can buy virtual coins that can then be spent on cosmetic accessories, for example, to customize their avatar.
It is not clear how the virtual Meta currency can then be used by those who receive it and whether it can be converted into real money, such as the euro.
As reported, Meta intends to offer “social tokens” and “reputation tokens,” which are issued based on, for example, contributions made to groups on Facebook.
Likewise, Meta can issue custom tokens specifically to those who create content: this aspect will be especially true for Instagram, which has given Facebook more space for influencers and creators of highly popular content over the years.
There is no official plan yet; Therefore, some aspects, even important ones, may change before they are announced or not announced at all.
NFT on Facebook in May
Meta also intends to integrate NFTs into its apps as early as mid-May, according to rumors, starting with Facebook. At a later stage, then, connected functionality will be introduced, such as the ability to create new NFTs (a process known as “coinage”) and join a group based on the possession of certain NFTs.
According to reports from two people familiar with the facts, Meta is on the path of a centralized virtual currency because it is subject to fewer rules and restrictions than a blockchain-based cryptocurrency.
In other words, while Project Diem (initially known as Libra) was immediately a project with certain conditions, the virtual currencies envisioned by the new Meta project would be easy to integrate as they are similar to those found in online video games.
Destination in search of new paths
Since the start of the year, Meta shares have lost 34% of their value, after the company saw a quarterly drop in active Facebook users each day.
Although Facebook is still the largest social network in the world (2.91 billion active users each month), the social ecosystem of Meta (Facebook, Instagram, WhatsApp) has 3.59 billion people. TikTok has billions according to data from September 2021.
For a long time, Facebook has lost its appeal with the younger generation, who are more interested in TikTok and Instagram. Just TikTok has made a huge impact on Instagram, which has incorporated Reel, short videos of up to 60 seconds, which are actually the fastest growing Instagram content; But also the most difficult to monetize because ads are easier to avoid with a simple swype up.
Furthermore, Instagram recently changed its algorithms again, giving more space to carousels with many photos and reducing paying for views collected with reels for more followed profiles.