Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Thursday, May 26, 2022

Meta eyes major expansion into new sector – reports

Meta eyes major expansion into new sector – reports

Tech giant apparently wants to allow users on Facebook and Instagram to buy and sell NFTs
Megacorporation Meta apparently plans to launch a marketplace for users to buy and sell non-fungible tokens (NFTs), an investment that would represent the largest show of support from the mainstream tech industry thus far.

The user-created digital objects supposedly cannot be replicated (though they are frequently “stolen”), but may – and do – increase or decrease in value with often shocking speed depending on demand. NFTs give the buyer ownership of a digital asset, with this ownership recorded on the blockchain.

Facebook and Instagram are working on a feature that will let users display NFTs as their profile pictures, as well as an option to ‘mint’ new NFTs, and parent company Meta is reportedly discussing “launching a marketplace for users to buy and sell NFTs,” the Financial Times reported on Thursday.

The leading NFT marketplace, OpenSea, saw its value soar to $13 billion in January, just six months after it was valued at $1.5 billion.

Meta CEO Mark Zuckerberg hopes to use NFTs to generate a market for digital goods capable of propping up Facebook’s arm of the metaverse. His company is investing $10 billion into the project annually, with an aim of shoring up its falling profits as the popularity of Facebook and Instagram decline. Such a collapse could threaten Meta’s $85 billion per year profits, the lion’s share of which is currently based on targeted advertising.

Facebook has also branched out into digital currency, debuting a wallet called Novi in October, which will be vital to powering its NFTs, according to people familiar with the plans who spoke to the Financial Times on Thursday.

Related Articles

Hong Kong News