Meta Ready to Double Down on its NFT Bet: Report
Important takeaways
- Meta’s new fintech chief, Stephane Kasriel, has confirmed the social media giant’s plans regarding NFTs.
- Despite the declining interest in NFTs in recent months, Meta still sees a huge opportunity in the area and believes they can use virtual goods to grow their own economy of $ 3 trillion over the next 10 years.
- The monthly NFT trading volume has fallen from a record high of $ 17.16 billion in January to around $ 1.1 billion last month.
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The declining interest in NFTs has not discouraged Facebook’s parent company Meta from continuing its major strategic efforts on the technology.
Meta keeps pace when NFTs lose floors
Despite the downward trend in the market, Meta has signaled unshakable conviction in its strategic efforts on NFTs.
IN a Wednesday interview with Financial Times, the social media giant’s new fintech leader Stephane Kasriel said the company would stick to its plans for NFTs and the digital collectibles economy. “The opportunity [Meta] “is for the hundreds of millions or billions of people who use our apps today to collect digital collectibles, and for the millions of creators out there who can potentially create virtual and digital goods to sell them through our platforms.” , Kasriel said, adding that he believes the company can build its own $ 3 trillion economy from virtual goods over the next decade.
In October last year, Mark Zuckerberg’s company signaled its strategic turning point towards the virtual world and the digital asset economy by changes name from Facebook to Meta to align its brand image with the ambitions of Metaverse. Zuckerberg later announced in March that the company had plans to bring NFTs to its photo-focused social media platform, Instagram. The company also submitted five trademark applications for its payment product, Meta Pay, with hints on a potential leap into the crypto area with a Web3 wallet and cryptocurrency exchange.
Of all the big names in Big Tech, Meta has so far been the most aggressive in its embrace of the new digital collectible economywith Kasriel who now only confirms the company’s position on the matter.
According to Dune data, the monthly NFT trading volume – a benchmark indicator of investor interest in the asset class – has fallen from a record high of $ 17.16 billion in January to around $ 1.1 billion in June. Trading volume this month is forecast to reach $ 460 million.
Commenting on the declining interest in the market, Kasriel acknowledged the reality of the crypto “hype cycle” and said that there were “many things that will not survive.” Despite the cyclical nature of the market, he confirmed that the company is sticking to its plans to take NFT’s mainstream by making them affordable and easy to buy and trade.
After learning from its previously unsuccessful attempt to launch the global stack coin called Diem, Meta is now moving with caution. “We are trying to figure out what the regulatory landscape is so that we do not invest in things that will eventually become super-controversial or shut down,” Kasriel said, adding that the company is making investments with extra realism about the nascent nature of industry and technology. .
Disclosure: At the time of writing, the author of this article owned ETH and several other cryptocurrencies.
