Sam Bankman-Fried believes Meta is wasting billions on smoke bombs

A year after the name change, Meta has seen its market capitalization 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 take on Meta’s strategy

A year after Facebook has rebranded itself as MetaSam Bankman-Fried (SBF), the founder and CEO of FTX, tried to explain Mark Zuckerberg’s policy in a long Twitter thread:

He tries to explain why the band took the trip to the metaverse. According to him, part of the explanation lies in the fact that Facebook has become so large that the social network no longer really had room for growth. Furthermore, 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 decline as users turn to other platforms and Facebook’s public image deteriorates.

As a result, Sam Bankman-Fried does not hesitate to describe Meta’s new workhorse as a distraction to try to breathe new life:

“But another way to help his reputation is to just make people ‘dislike him less.’ And one way to do that is to use a distraction. ‘Hey everybody, look over there, it’s the metaverse!’ People no longer think about privacy, bullying and poor stock performance.”

👉 To go further – Learn more about the virtual worlds that make up the metaverse

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Are the spent billions just smoke bombs?

In its analysis, SBF goes even further by qualifying the 10 billion investments per year “smoke bombs that do not produce much smoke“. It refers to that this no longer convinces investors now that the initial excitement is over :

It must be said that Meta’s metaverse is struggling to find its audience. A year after this image change, the group’s results are simply disastrous with a share price devalues ​​even more than Bitcoin (BTC)deletes at the same time more than 763 billion dollar capitalization :

Action Meta

Meta share price

Signs of lack of adoption, we have recently noticed the practice of the management of Meta, which forced the hand of its employees so that they go to Horizon World.

Since 28 October 2021, Date of name change on Facebook, Meta has taken several actions towards its blockchain shift. Little by little, non-fungible tokens (NFT) appear on the group’s social networks, and several requests for the name “Meta Pay” had even been filed.

It now remains to be seen whether these various bets will pay off in the long runor if they will accentuate the company’s current difficulties.

👉 On the same topic – Led by its metaverse? Meta posts are down for the 3rd quarter in a row

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Source: TradingView

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