A year after its name change, Meta has seen its market cap drop by more than $763 billion. Faced with this observation, Sam Bankman-Fried took a critical look at Mark Zuckerberg’s strategy.
Sam Bankman-Fried (SBF) gives his opinion on Meta’s strategy
A year after Facebook has renamed itself MetaSam Bankman-Fried (SBF), the founder and CEO of FTX, tried to explain Mark Zuckerberg’s politics in a lengthy Twitter thread:
1) Metamark
— SBF (@SBF_FTX) October 29, 2022
He tries to explain why the band took the turn of the metaverse. According to him, part of the explanation lies in the fact that Facebook has become so big that the social network no longer really had room for growth. Moreover, he notes that the number of active users per month began to stagnate after “two decades of continuous growth“.
Thus, the group’s income could not mechanically increase more. They could even potentially fall as users turn to other platforms and Facebook’s image among the general public deteriorates.
As a result, Sam Bankman-Fried does not hesitate to describe Meta’s new workhorse like a distraction to try to breathe new life:
“But another way to help his reputation is just to make people ‘not like him less.’ And one way to do that is to use a distraction. “Hey everyone, look over there, it’s the metaverse!” People don’t think about privacy, bullying, and poor stock performance anymore. »
👉 To go further – Learn more about the virtual worlds that make up the metaverse
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Are the billions spent only smoke bombs?
In its analysis, SBF goes even further by qualifying the 10 billion investments per year “smoke bombs that don’t produce much smoke“. It refers to the fact that this no longer convinces investors, now that the initial enthusiasm has passed :
22) Which makes no sense if this is all a diversion.
It’s one thing to blow $10b/year on smoke bombs.
It’s another thing to blow $10b/year on smoke bombs that don’t produce very much smoke.
Why throw good money after bad?
— SBF (@SBF_FTX) October 29, 2022
It must be said that the metaverse of Meta is struggling to find its audience. A year after this change of image, the group’s results are quite simply catastrophic, with a share price devaluing even more than Bitcoin (BTC)erasing at the same time more than $763 billion capitalization :
Meta share price
Sign of a lack of adoption, we recently noted the practices of the management of Meta, which forced the hand of its employees so that they go to Horizon World.
Since October 28, 2021, Facebook name change date, Meta has carried out several actions in the direction of its blockchain shift. Little by little, non-fungible tokens (NFT) are appearing on the group’s social networks and several requests for the name “Meta Pay” had even been filed.
It now remains to know whether these different bets will pay off in the long runor if they will accentuate the current difficulties of the company.
👉 On the same subject – Leaded by its metaverse? Meta posts decline for 3rd consecutive quarter
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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