Meta formerly Facebook saw a sharp decline in its share price. A 26% fall in its earnings and daily active users.
After changing its name to Meta, Facebook planned to focus on metaverse. And since the announcement Meta’s efforts have collided with its decentralized competitors: The Sandbox and Decentraland.
It’s the first time Meta has shared a breakdown of its earnings report about its VA research and development. The business entity Reality Labs responsible for it saw losses that have topped $10 billion which is up from 6.6 billion in 2020.
You can claim Meta is in its early stages of laying the groundwork for metaverse, however, Yat Siu of Animoca Brands said, the slump in Meta’s share price is because people are waking up to the centralized model of Web 2.0 and the nightmare its become.
Facebook’s metaverse is aimed at driving out decentralized competitors. Now, this unsavory prospect seems less likely due to Meta’s poor performance. Any Web 3.0 and blockchain metaverses enthusiast would breathe a sigh of relief after this. And also their belief would have strengthened.
You can bet Meta’s metaverse in its full swing would be both centralized and would center around extracting and gathering user data. That means, providing a hefty revenue stream for the tech giant.
Jack Dorsey takes Meta to task
The fall in share price wasn’t the only thing this week. Jack Dorsey, former Twitter CEO disses Meta over its failed Diem stablecoin project. He believed the company should’ve focused its attention on Bitcoin from the outset.
Diem ended last week. Diem Association is reportedly selling its assets and IP to Silvergate Capital. Per Jack Dorsey, it’s “wasted effort and time”. Meta could have played its part in “making Bitcoin more accessible”, he added.
Metaverses on a roll!
MANA and SAND have performed well. Decentraland’s 2022 Manifesto describes its move to launch a prototype mobile app that offers improvements to its play experience, the greater utility of NFTs, and protocol enhancements.
Meanwhile, The Sandbox announced its partnership with UniX Gaming which is a decentralized autonomous organization. The platform aims to release more “land” in its metaverse.
To wrap up
Other than Meta, Apple and Microsoft are also looking to enter the metaverse space. Disney is in on it too. The entertainment giant even posted a recent job advertisement about a business development manager who’d “help Disney’s efforts in the NFT space”.