There is no Metaverse yet. The required VR technologies are stuck somewhere between alpha and beta testing. And some online games that pretend to be metaverses are ridiculous. But thanks to Mark Zuckerberg we already know what kind of Metaverse crypto will we use to pay for goods (and, of course, ads) in virtual worlds.
Last year Mark Zuckerberg introduced the Metaverse and even renamed his Facebook corporation into Meta. Since then the metaverse trend went viral, and now everybody wants to be a part of this new web3 infotainment 3D space.
Skeptics claims there are no technologies to create the Metaverse in the near future.
But Zuckerberg is unshakable.
While we still have no idea how to enter the Metaverse, he has already decided how we will pay for goods there.
At least Zuckerberg is clearly seeing the money as the first thing that needs to be developed for the Metaverse.
Captivated yet?
Let’s see what kind of the Metaverse crypto is Zuckerberg planning to throw at us.
Zuck Bucks mean no crypto in metaverse
As per the new Financial Times report, right now Meta is developing alternative revenue streams to attract and retain users. And soon we can see Meta Financial Technologies introducing a virtual currency of their metaverse.
Wow, a metaverse crypto! That’s thrilling, huh?
Not so fast. According to the latest news, the metaverse crypto will not actually be a crypto in a way you imagine it. The crypto Meta is developing will not be a typical decentralized blockchain-based money. Instead, Zuckerberg’s company wants to create fully controlled in-app tokens.
So it will be something like the currency Roblox is using inside its gaming app rather than a new kind of crypto designed specifically for the Metaverse.
That is strange because even Decentraland and The Sandbox – first metaverses that obviously can not compete with the upcoming gigantic Meta – have already created their blockchain cryptocurrencies. Decentraland has MANA and the Sandbox has SAND. Those are legit cryptocurrencies with no questions about their security and privacy. Both MANA and SAND are available on the popular crypto exchanges.
Reportedly, Zuck Bucks will be exclusive to the Meta services.
Financial Times also reports that Meta is working on social tokens or reputation tokens. Those tokens would allow to reward Facebook users and groups for their meaningful contributions.
Among others, there is a plan to introduce creator coins which would help to additionally monetize the photo-sharing app Instagram for some celebs.
What about Meta’s NFT?
New Facebook platform is also bullish about non-fungible tokens and collectibles.
Zuckerberg may believe that NFTs can be the potential currency for transacting digital goods and commerce in the Metaverse. And he may be right. Just look at what is going with NFTs in most popular crypto metaverses Decentraland, The Sandbox or Axie Infinity.
For now all we know is that Meta is planning to add NFTs support to the Instagram app.
Though is remains unclear how exactly could users benefit from it.
Some experts predict that Instagram might allow users to create NFTs directly from their photos in the app and immediately put them on sale. That could be a giant leap for NFT as a thing. Because Instagram is so immensely popular nowadays.
Some say that Meta may even launch a pilot version of posting and sharing NFTs instrument for Facebook by May 2022. There also can be special Facebook Group memberships for NFT owners.
But the role of NFTs in the upcoming Metaverse is still not clear.
The aforementioned Zuck bucks aren’t crypto in the traditional meaning. One could expect that NFTs in the Metaverse might also turn into something much less of a crypto.
Wait, Libra?
If you remember the previous Facebook’s crypto project Libra you may think that isn’t the best idea for Meta to go into crypto.
Yes, in 2019 Facebook already announced its own cryptocurrency launch. But soon they faced strong regulatory backlash from EU and USA authorities.
There were plans about creating the Facebook crypto wallet and using Libra for internal payments like ads promotions and monetizing functions.
But the project died before it was actually born. With the first calls from regulators, big investors like MasterCard, Visa, and PayPal left Libra.
Then Facebook tried to make Libra the new payment system with the digital currencies and even the central bank digital currencies (CBDC). You may have heard about Calibra and Diem wallets that were part of the Libra project.
In late 2020 Libra was renamed Diem. Later Facebook once again announced issuing its own token together with Silvergate Bank.
But a few months ago Zuckerberg finally sold the Diem to Silvergate Capital Corporation for almost $200 million.
Will Meta actually build the Metaverse?
It seems like the new platform isn’t feeling good now. As we know, Meta shares are still down 30% from the beginning of February.
Analysts claim that Facebook’s enormous spending on the metaverse caused a decline in fourth-quarter profit. Facebook speakers also explained lower revenues with the competition from new platforms like TikTok.
Revenues may be directly linked with the decline in popularity. The number of Facebook users dropped by about 500 000 in the fourth quarter of 2021.
Now Meta may hope that it will be selling the new in-app currency directly to its users and will encourage them to stay on the platform. And they should do it right now because the problem is getting bigger.
Actually, even the central-controlled in-app currency idea isn’t the first for Facebook: in 2009 it launched Facebook Credits to facilitate in-app purchases in then highly popular games such as Zynga’s FarmVille.
Unlike Libra, Facebook Credits got a bit of success. But the platform was shut down four years later.
But there is still a lot to watch with Meta development. Recently Meta has filed for eight trademarks with the United States Patent and Trademark Office. Six of these filings were about cryptocurrencies and the Metaverse.
Among them are advertising services via virtual or augmented reality networks and the metaverse, E-wallets, wearables for virtual reality video games, and the development of computer hardware and software for web3.
So seems like Meta is hoping to make advertising services in its metaverse the biggest revenue generator for the company.
Would you like to see more famous brand names and logos through your VR handset?
Don’t answer. Because you will.
Sources: Bussiness Insider, The Guardian, Fortune
