Project Zuck Bucks: Meta Plans Virtual Currency After Crypto Failure

Financial Times | GT

Meta has outlined plans to offer virtual currencies, tokens and lending services for its apps, as Facebook’s parent company pursues its financial ambitions despite the collapse of a plan to launch a cryptocurrency.

The company, led by CEO Mark Zuckerberg, is looking for alternative revenue streams and new features that can attract and retain users as the popularity of major social media products such as Facebook and Instagram declines – a trend that threatens 118 billion dollars. General advertising business model.

Meta Financial Technologies, the financial arm of Facebook, is planning to create a virtual currency for the metaverse, which employees have internally dubbed “Zuck Bucks,” according to several people familiar with the effort.

Some people have said that it is unlikely to be a blockchain-based cryptocurrency. Instead, Meta tends to offer in-app tokens that will be centrally controlled by the company, similar to those used in gaming apps such as the popular kids game robux. roblox game.

According to memos from the company and people familiar with the plans, Meta is also considering creating “social tokens” or “reputation tokens,” which can be issued as rewards for meaningful contributions to Facebook groups, for example. Another effort is creating “creative pieces” that can be linked to specific influencers on the Instagram photo-sharing app.

Meta is also exploring more traditional financial services, with a focus on providing loans to small businesses at attractive rates, according to several people familiar with the initiative. One person said that without immediately planning, the company had already held discussions with potential loan partners.

Most of the efforts are still in the early stages of discussion and could change or be scrapped, though its plans to incorporate non-fungible tokens (NFTs) into its apps are more advanced. Zuckerberg has confirmed an earlier Financial Times report that Instagram will soon begin supporting NFTs.

According to a note shared internally last week, Meta plans to launch a beta program for posting and sharing NFTs on Facebook in mid-May. This will be “quickly followed up” by testing a feature that enables Facebook group membership based on NFT ownership and another for instrument – ​​a term to create – NFT.

NFTs could be monetized via “fees and/or advertising” in the future, according to another internal document.

Facebook declined to comment.

Meta lost more than $220 billion of its market valuation in February, the day it revealed users are spending more time on new competitors, such as short-form video app TikTok.

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Project Zuck Bucks: Meta Plans Virtual Currency After Crypto Failure

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