Friday, June 2, 2023

Facebook’s Metaverse Pivot Drops Meta Shares

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Facebook is putting the quest of quick profit on hold in favor of creating a metaverse.

Investors aren’t convinced. This evidenced the dip in the price of Facebook’s stock this morning. Meta’s stock dropped by more than 20% this afternoon. Immediately after, the company’s parent company, Facebook, released its fourth-quarter profits report for the fiscal year 2021.

Metaverse

Facebook reported flat user growth in its earnings report. Despite the company’s shift away from its core products. And toward the creation of a metaverse—a virtual internet where users interact with digital avatars. Also, frequently using virtual and augmented reality headsets—as a result of its shift away from its core products.

BTC and Web3

An increasing number of blockchain initiatives are competing to develop an open-source metaverse. Rumors said that Bitcoin (BTC) and Web3 powered this.

This is just the most recent in a string of bad news for the technology industry. Also, Libra was the previous name for Diem Association. Silvergate bank has acquired Facebook’s stablecoin development efforts. Moreover, it was only a few months ago that it was estimated to be worth $200 million. Thereby putting an end to the social media giant’s stablecoin intentions for good.

Regulators slammed it. This is after the unveiling in June of this year. Moreover, US Senators Sherrod Brown of Ohio and Brian Schatz of Hawaii, among others, as soon as it got off to a slow start. In the beginning, several of the group’s founding members had to leave. This includes PayPal, Visa, eBay, Stripe, and MasterCard.

With each passing day, the project’s scope became less and smaller. After it was put on hold. The truth came to light.Cryptocurrency security concerns persist despite the recent launch of the Novi wallet. It will not host the Paxos stablecoin.

Facebook, What’s the Plan?

Despite Facebook CEO Mark Zuckerberg’s plan in October to rename the company to Meta, the move to the metaverse is experiencing opposition from both political parties in the United States. Facebook is widely disliked. This is because purported involvement. This is because of the distribution of misleading information about COVID-19.

Moreover, the prospect of Russian meddling in the 2016 presidential election in the United States, among other reasons. In Meta’s virtual world, there have been allegations of sexual and verbal abuse. As a result, there has been no proof of these claims.

Finally, because of the company’s vast presence. It has been able to weather the storm for the moment. According to the writers of the paper, increased competition for people’s time will result in a shift in their level of involvement.

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Ivan Cruz
Ivan Cruzhttps://www.cryptoconstellation.com/
Ivan Cruz is a writer for Cryptoconstellation. He has his Masters in Applied Research in Economics & Business. Ivan has been trading crypto for the past 7 years himself and feels it is his duty to bring you all the latest news.
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