Facebook’s Metaverse News Launched These Cryptos Higher
Facebook is going all in on the metaverse.
On Thursday, Facebook CEO Mark Zuckerberg announced that the company is changing its name to Meta.
He added: “I believe that metaverse is the next chapter for the internet. And it’s the next chapter for our company, too.”
This marks the biggest pivot in corporate history.
Facebook has nearly 3 billion monthly active users. That means it touches almost half of the world’s population.
And the company is willing to spend what it takes to develop this next iteration of the internet.
This is one of the biggest bets in corporate history. Zuckerberg said the initial spend on the metaverse would erase $10 billion from this year’s profits.
And that’s just the start. I expect Facebook to spend over $100 billion in the next decade building virtual worlds.
Here’s the crazy part: Zuckerberg doesn’t know when or if this endeavor will be profitable.
He did forecast that “within the next decade, the metaverse will reach a billion people, host hundreds of billions of dollars of digital commerce and support jobs for millions of creators and developers.”
Facebook’s move will accelerate us into the metaverse. But here’s why I think there are better ways to invest in the next wave of computing…
Facebook Opens the Metaverse Door
Facebook’s plan to throw huge amounts of money into the metaverse makes me more bullish on crypto than ever.
That’s because the metaverse will enable new uses for digital assets.
These could be a virtual pair of sneakers for your digital self or a digital music collection.
And Facebook’s plan accelerated our shift toward this digital world.
Cryptos that allow for the creation and purchase of digital goods in virtual worlds rallied sharply over the weekend.
MANA, a token used in Decentraland’s virtual worlds, shot up over 400% to as high as $5 on Coinbase.
And SAND, a token used in a game called The Sandbox, more than tripled, reaching as high as $2.43 on FTX.
Facebook’s entrance will open the metaverse door to half the planet. This will drive the virtual world narrative.
Blockchain Will Flip the Virtual World on Its Head
This isn’t the first time a Facebook project rippled through the crypto markets.
In 2019, the company announced it was working on its own coin called Libra.
The launch never happened. But the story drove the crypto markets higher for most of that year.
As I said last week, blockchain will flip the virtual world on its head.
With blockchain, digital assets don’t need a middleman to keep track of who owns what.
That means Facebook might spend billions building a virtual world, but it won’t own the things in it.
Blockchains will make sure that you own those digital items.
That’s why the best way to invest in the virtual world is through crypto, which gives us the means to create and own these digital items.
Editor, Strategic Fortunes
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My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.