Meta Considers Virtual Coins And Social Tokens For Facebook And Instagram Users
Meta Platforms Inc is planning to introduce virtual tokens and cryptocurrencies on its platforms. The virtual tokens will be used for rewarding creators and providing other financial services.
If the plan is implemented, it could also give Meta a new revenue channel and control over transactions in its suite of apps and services. Meta Platforms Inc is the parent organisation of Facebook, Instagram, and WhatsApp.
According to the Financial Times, the plan is in its early stages. Meta is also focusing on growing the metaverse, a virtual environment where people interact, work, and play. Reportedly, Meta’s cryptocurrencies, “Zuck Bucks”, are intended for the metaverse. It would not be tied to a blockchain.
The company could introduce in-app tokens that would be centrally controlled by Meta. Reportedly, the tokens could be used to pay favorite creators on Instagram or reward people who make meaningful content in Facebook groups. With this, the main goal of Meta is to boost alternative sources of revenue.
Mark Zuckerberg, chief executive officer of Meta, said last month that Instagram will introduce non-fungible tokens (NFTs) soon. NFTs is a non-interchangeable unit of data stored on a blockchain. In January, rival social media company, Twitter, introduced NFTs to its platform. Reportedly, Meta is considering monetising NFTs via fees or advertisement. However, Meta did not provide much detail about the plan.
Facebook rebranded to Meta in October 2021. This year, Meta became a member of the Crypto Open Patent Alliance (COPA) to promote open access to cryptocurrency technologies. COPA is a consortium of tech and crypto companies led by Jack Dorsey’s payments company Block Inc.
In February, Meta dropped out of the world’s 10 most valuable companies by market value. The company was once the world’s sixth-largest company with a valuation above $1 trillion. It also lost about one million users from the third quarter to the fourth quarter of 2021.