Facebook, Google, and Facebook Are Investing in the Metaverse
The Metaverse is an online social space where users can engage in virtual activities and interact with other players. According to Citi GPS, the market for metaverse services will grow to five billion users by 2030. Despite the promise of this new medium, there are several drawbacks. These include regulatory uncertainty, the risk of money laundering, counterfeit NFTs and trading scams, and the high volatility of most cryptocurrencies. However, big firms like Google, Facebook, and Microsoft have an advantage over the smaller startups when it comes to investing in the metaverse, as they already have budgets to spend and security measures in place to protect users’ data.
In recent weeks, prices for metaverse-related coins have soared. Popular cryptos like MANA, a popular virtual currency, have soared 400%. Meanwhile, gaming tokens like DECENT and Roblox have also surged. Facebook has announced it will rebrand itself as a “metaverse company” and has even made references to crypto and non-fungible tokens.
Many investors have come on board to support the Metaverse, including Andreessen Horowitz, a large American venture capital fund. Its investments include companies like Facebook, Airbnb, Coinbase, and Lyft. In addition, this fund is putting money into several metaverse projects, including Animoca Brands and Dapper Labs.