Right now•6 min read•Other
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In the last year, Facebook has undergone massive rebranding. Facebook renamed its parent company Meta. With this, the company wanted to react to the new trend of the metaverse, which was also making waves in the crypto market. But what about Facebook meta at the moment?
We wanted to represent the current situation of Meta. We tell if Facebook’s new branding was successful and how the metaverse could define the future of both Facebook and cryptocurrencies.
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What is Meta of Facebook?
The company Facebook was one of the most successful technology companies in recent years. But the social network emerged as one of the largest and most powerful companies in the world. In October 2021, Facebook Inc., the parent company of the social platform, changed its name to Meta. The company thus undertook a complete re-branding. Only the social platform is now called Facebook.
Meta Platforms, Inc. owns the Facebook and Instagram platforms and the WhatsApp and Messenger messaging platforms. The re-branding in Meta derived from the notion of the metaverse. The Metaverse is intended to represent a digital space in which users can interact with each other completely independently. You can find more information about the Metaverse here.
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Why did Facebook change its name to Meta?
Facebook’s re-branding in Meta should mark a fresh start for the company. Facebook has had a troubled reputation as a platform, but especially as a company, for some time.
The platform has become “older” over the past few years. The average age of users is growing while young users are migrating to Instagram and TikTok platforms. Furthermore, the criticism of a lack of innovations and security gaps flares up again and again.
The biggest criticism, however, went to Facebook as a group. For many Internet users, the company symbolizes a “data octopus” that collects and processes user data in bulk. Facebook is said to be acting more and more often on the edge of legality. Furthermore, Facebook is also considered a symbol of a powerful tech group that has too much power in the digital space, keeps competition down and restricts freedom of expression.
With the renaming to Meta, Facebook wants to develop a better image and prepare the company for the future. The bad associations should end.
Why is Facebook interested in the Metaverse?
As a free, decentralized, digital space for individual users, the Metaverse is intended to be the next step in the development of the Internet. The connection with Web 3.0 is also mentioned again and again. In this article we explain the term Web 3.0 in detail.
Facebook and its founder Mark Zuckerberg took up this idea and would like to not only offer social networks in the future, but also provide its users with an entire metaverse. The services offered are to be massively expanded in the metaverse.
Ultimately, many observers are wondering whether the renaming to Meta really reflects Facebook’s vision for the next few years or whether the renaming is primarily intended to give the ailing company a fresh coat of paint. Probably both apply to the re-branding.
How have the last few months been since the renaming?
Of course, the renaming of Facebook to Meta caused extreme astonishment and some uproar in the digital world. After a time when the company was spoken about less, and when it was then negative, Facebook was on everyone’s lips again. At the same time, the concept of the metaverse became even more mainstream.
The crypto market also benefited greatly from the renaming. Even before the re-branding, individual metaverses and metaverse tokens were created on the basis of the blockchain and were able to fight their way into the top 100 most valuable cryptocurrencies. After the renaming to Meta, the prices of these Metaverse tokens exploded. Here is a summary of the successful Metaverse tokens.
However, the figures for the fourth quarter were rather sobering for the company Meta. The number of users on the Facebook platform fell by one million users for the first time. Meta blamed the strong competition from relatively young platforms like TikTok. As a result, share prices plummeted.
What did 2022 bring for Meta?
Meta was able to put the disappointing 4th quarter somewhat behind in 2022. This was helped by the fact that the number of users on Facebook rose by 30 million in the first quarter, which pushed Facebook’s share prices back up. A total of 1.96 billion people used the social network Facebook in the first quarter of 2022.
However, at Meta, formerly Facebook, all that glitters is not gold. Full-year sales increased 5% to €27.9 billion from $26.4 billion. This has historically been a rather low increase for the company. The forecasts of the analysts were not achieved.
What are Facebook’s plans for the Metaverse?
Facebook wants to create its own huge metaverse in the future. The Reality Labs department takes care of the implementation at Meta. Reality Labs develops, among other things, virtual reality glasses such as Quest 2. This area generates high sales. However, the high development costs mean that Meta is currently making losses in the development of virtual reality.
The development of the Metaverse is a long-term project for Meta, which entails extremely high costs. Meta’s plan is for platforms like Facebook and Instagram to generate profits to partially finance the development.
What could be the implications for the crypto market?
The blockchain could be an important basis for the metaverse in the future. Because in the Metaverse, decentralization is one of the most important properties. The Metaverse is intended to be a digital space that is independent of a central control. That’s why many people are very skeptical when Facebook takes the step towards Metaverse and now calls itself Meta.
Nevertheless, a further development of Facebook into a metaverse could also make the concept more popular in the mainstream and ensure that many blockchain projects around the metaverse receive more attention and more sponsors. The Metaverse will remain an exciting development in the future, which will also determine the crypto world.
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