Connect with us

À la une

Meta, formerly Facebook, lost 70 percent of its value after switching to the metaverse.

Published

on

Key facts:
  • Meta lost nearly $10 billion this year in its division dedicated to the Metaverse.

  • Metaverses in general are in crisis, with cases like The Sandbox joining Meta.

Facebook’s bet, now Meta, on the world of metaverses and cryptocurrencies has not gone well. Since changing its name to Meta following Mark Zuckerberg’s bid to enter the world of metaverse, the company’s shares have fallen as much as 71 percent.

When compared with the stock returns of other large technology companies, such as Google or Apple, Meta’s debacle has an even greater dimension. Although all markets have suffered in this bear market, neither of these two companies comes close to Meta’s devaluation.

Google’s stock fell less than 40 percent during the same period that Meta’s stock fell 71 percent.a chart by Kaiko. Apple’s stock, in turn, has depreciated about 20 percent over this period.

Shares of Meta, Google, and Apple.
The fall of Meta is very alarming compared to those of Apple or Google. Source: Kaiko.

In total, Meta’s Metaverse division alone. lost about $9.4 billion this year.According to the most recent report by the analyst firm Kaiko. The same document states that in the third quarter of 2022 the division’s losses amounted to $3.7 billion.

In addition to these losses, Kaiko analysts point out that the company is unable to meet its utilization targets. The metaverse Horizon World’s Metaverse has just under 200,000 monthly active users. This figure is equal to the number of users of The Sandbox, a much younger and completely niche cryptocurrency company. Meta is the successor to Facebook, but even this fame has not helped it gain a large mass of users.

This is equivalent to the monthly users of Sandbox, a blockchain-based game that earlier this year was looking to raise a valuation of $4 billion: less than half of what Meta plans to spend on the Metaverse per year.

Kaiko.

Metaverses (like the real world) are in crisis.

Although the Meta debacle is noteworthy, the truth is that the entire metaverse industry seems to be in crisis. The token trading volumes associated with platforms such as Decentraland, The Sandbox or Axie Infinity Are at an all-time low right now.

Axie Infinity, Decentraland and Enjin shares.
Tokens associated with metaverses register big losses this year. Source: Kaiko.

And if we go and look at the returns on these tokens, as seen in the graph above, the catastrophe is evident: over 80 percent decline for the metaverse tokens.which only a year ago dominated the cryptocurrency market.

A lire aussi :   the secret to surviving the crisis

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.