Mark Zuckerberg is set to develop virtual coins — Zuck bucks — for users of Facebook and Instagram. His latest decision is part of a scheme of things designed to lessen his platforms’ dependence on advertising in the metaverse.
Meta, Facebook’s parent group, is looking to develop a series of virtual products – including digital “creator coins” and tokens – to diversify income and rejuvenate its user base, which is increasingly bent on newer rivals such as TikTok. However, Meta remains the dominant digital media network provider, with revenues rising by 37% to $118bn in 2021. Advertisers, on the other hand, clamoured to reach the mark of 4.9 billion monthly active users of Instagram and Facebook. Meanwhile, TikTok has also built up a significant non-ads business based on e-commerce and in-app purchases.
Meta has proven quick to ape successful products introduced by rivals such as Snapchat. It is now exploring ways to monetise its user base, as per the Financial Times.
Products being looked at include “reputation tokens” or “social tokens,” which users would use as rewards. Moreover, the platform is also looking at “creator coins,” which would be used by influencers on Instagram.
Like Amazon’s Twitch and TikTok’s tipping system, where fans can buy coins to buy gifts for their favourite creators, Meta is also planning to reward creators on its platform.
Creators can also buy coins on Meta in a bid to increase viewers or followers.
The initiatives are led by Facebook’s financial arm — Meta Financial Technologies. The initiatives follow the company’s attempts to create a global cryptocurrency. It is pertinent to state that their projects called Libra and Diem were abandoned earlier this year after various issues with US regulators.
This is not the first time that Facebook has looked to move into virtual finance. In 2009, it launched Facebook Credits to aid in-app purchases.