Meta is trying to venture into the virtual coin segment. It has come up with the so-called Zuck bucks. The digital money will be used by users of Instagram and Facebook. It will be a part of the platforms' products to minimize dependency on advertising while the company shapes the metaverse.
Meta is the parent group of Facebook and it is developing several virtual products like creator coins and digital tokens. These products are to diversify income as well as revitalize the user base.
As of now, Meta is dominating the social media segment and its revenue was up by 37 percent in 2021 to $118 billion. The active user base of Instagram and Facebook is about 4.9 billion per month and this is making advertisers rush and grab opportunities. TikTok is the main rival and it has developed in-app purchases to reduce dependency on advertisements.
Meta is currently working on exploring ways to monetize its platforms equipped with a huge user base. The products to help in monetizing include reputation tokens or social tokens. These can be used in the form of rewards for users. It is paving the path to come up with creator coins that can be used by influencers.
TikTok similarly uses a tipping system under which the fans are able to buy the coins and thereafter buy gifts to offer to favorite creators, who can simultaneously buy the coins to promote videos and increase followers as well as viewers.
Earlier, Facebook attempted to create a crypto coin named Libra, which was later renamed Diem. However, the project was abandoned due to issues with regulators in the US.
Much earlier, Facebook launched Credits for the purpose of in-app buying in its games including FarmVille in 2009. The project was shut down after four years of success due to costly currency conversion rates.
Now, Meta is working on entering the NFT segment that can be integrated into Facebook and Instagram.
Meta is the parent company of Facebook and the new name was coined in 2021. It is headquartered in California, US. The key people currently responsible for the company include chief executive Mark Zuckerberg, COO Sheryl Sandberg, president Nick Clegg, CFO David Wehner, CTO Mike Schroepfer and CPO Chris Cox.
The products and services under the Meta umbrella include Facebook, Facebook Portal, Facebook Watch, Kustomer, Mapillary, Giphy, Oculus and Jio Platforms.