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Meta Looks to Sell Off its Diem Cryptocurrency Project Due to Ongoing Challenges and Restrictions

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Meta Looks to Sell Off its Diem Cryptocurrency Project Due to Ongoing Challenges and Restrictions


After three years of development, and a raft of changes to its name, scope, leadership and purpose, it seems like Meta’s trouble cryptocurrency project may soon come to an end.

According to reports, Meta’s looking to pull the pin on its Diem/Novi crypto project, with company representatives seeking expressions of interest on its sale.

As reported by Bloomberg:

The Diem Association, a cryptocurrency initiative once known as Libra backed by Meta Platforms Inc., is weighing a sale of its assets as a way to return capital to its investor members, according to people familiar with the matter. Diem is in discussions with investment bankers about how best to sell its intellectual property and find a new home for the engineers who developed the technology, cashing out whatever value remains in its once-ambitious Diem coin venture, said the people, asking not to be identified because the discussions aren’t public.”

That would be a significant step back for Meta, which launched its original Libra crypto project to much fanfare in 2019, with former PayPal chief David Marcus at the helm of the initiative.

But the project saw strong resistance from the start.

Maybe it’s because it was coming from Meta (then Facebook), or maybe it was due to widespread distrust of crypto projects, but many regions came straight out and said that they would not support the company creating its own currency. The public backlash saw many of the initial big-name backers pull out, including Visa, Mastercard and PayPal, all key names which had leant credibility to the initial concept.

That, already, put the entire experiment in limbo, because without the support of major financial institutions, Meta’s options for the project were limited. It seemed, then, that the project would likely fade away, but then in May 2020, Meta announced that it was changing the name of its crypto wallet from Calibra to Novi.

In October last year, after a long period of no news, then Novi chief David Marcus announced the next major step forward for the project, with the launch of a pilot of its Novi digital wallet in the US and Guatemala, enabling users to send and receive money between the two regions.

Novi

That was the first concrete steps we’d seen in making the project a workable reality, but still, many regions are still very skeptical of cryptocurrency, and with India, in particular, moving to ban cryptocurrencies outright, the value of the project was also lessened, potentially to the point where it’s now no longer viable in broader terms.

India, it’s worth noting, is where Meta sees the most potential for money transfers and eCommerce, as it looks to cement its apps as key connective tools in the emerging market.

Shortly after the launch of the Novi payments pilot, David Marcus left the project, and maybe that was the final flag, the signal that it was just never going to make it.

Which now leads to these new reports, that Meta’s looking to sell it off – though it is worth noting that the reports suggest that Meta is looking to get out of the Diem Association, the parent group overseeing the project, with no mention of the Novi payment project specifically.

I would assume that they are intrinsically tied together, but maybe there’s a way for Meta to continue to support and develop its Novi payments option independently, though that does seem like a stretch.

So what would a sale of Diem, and the failure of Meta’s crypto push, mean for crypto more broadly?

I mean, resistance is steadily growing for cryptocurrencies in general, with more regions now moving to cut them off completely, including Russia, China and Indonesia in recent months. A report published the Library Law of Congress late last year showed that the number of countries and jurisdictions that have either banned or restricted cryptocurrencies has more than doubled since 2018, due to concerns around scam activity, market price fluctuations, and environmental impacts as a result of crypto ‘mining’.

Yet, at the same time, many western nations are seeing a boom in sales of crypto-aligned projects like NFTs, and with Web3 advocates essentially tying the growing tech movement into crypto development, it is actually gaining momentum in some circles, despite concurrently rising concerns.

But as noted, western markets are not where Meta saw the most potential value in its crypto project. Meta’s real aim has been to build native, in-stream payments into its apps, in order to further embed their use into developing markets, like India and Indonesia. Both of these regions see high remittance activity, with people transferring money back to family, and Meta originally saw Diem as a vehicle for removing fees from such exchanges, which would then get more people moving their money through Facebook and WhatsApp.

And once they’re already shifting their money around in its apps, that would make it much easier for Meta to parlay that behavior into eCommerce, expanding utility, and importance, for the millions of people in these markets.

But it does seem like that’s not to be – and given that, it makes sense for Meta to move on.

Though it’s not a great endorsement for the potential of crypto, in a broader sense. If Meta, with all of its resources and influence, can’t find a real use case for crypto, does that suggest that its potential value is not as high as some advocates think?

That might be a stretch, but as more regions move to ban crypto projects, and more big players step away from the sector, it does seem like the challenges are rising, which could, eventually, put the brakes on the entire crypto movement.    





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Snap making changes to direct response advertising business

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Snap making changes to direct response advertising business

The company posted a net loss of $288.5 million, or 18 cents a share, including $34 million in charges from its workforce restructuring. That compared to a profit of $23 million, or one cent, a year earlier.

Snap ended the fourth quarter with 375 million daily users, a 17% increase. In the first three months of the year, the company estimates 382 million to 384 million people will use its platform daily.

Snap has become a bellwether for other digital advertising companies. Last year, it was the first to raise concerns about the slowdown in marketer spending online and to fire a significant number of employees—20% of its workforce—to cut costs in the face of falling revenue.

The company has spent the last two quarters refocusing the organization, cutting projects that don’t contribute to user and revenue growth.

In the first quarter, Snap expects the environment to “remain challenging as we expect the headwinds we have faced over the past year to persist.”

Investors will get additional information about the state of the digital ad market when Meta and Alphabet report earnings later this week.

—Bloomberg News

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Twitter Outlines New Platform Rules Which Emphasize Reduced Reach, as Opposed to Suspensions

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Twitter Outlines New Platform Rules Which Emphasize Reduced Reach, as Opposed to Suspensions

After reinstating thousands of previously suspended accounts, as part of new chief Elon Musk’s ‘amnesty’ initiative, Twitter has now outlined how it will be enforcing its rules from now on, which includes less restrictive measures for some violations.

As explained by Twitter:

“We have been proactively reinstating previously suspended accounts […] We did not reinstate accounts that engaged in illegal activity, threats of harm or violence, large-scale spam and platform manipulation, or when there was no recent appeal to have the account reinstated. Going forward, we will take less severe actions, such as limiting the reach of policy-violating Tweets or asking you to remove Tweets before you can continue using your account.”

This is in line with Musk’s previously stated ‘freedom of speech, not freedom of reach’ approach, which will see Twitter leaning more towards leaving content active in the app, but reducing its impact algorithmically, if it breaks any rules.

Which means a lot of tweets that would have previously been deemed violative will now remain in the app, and while Musk notes that no ads will be displayed against such content, that could be difficult to enforce, given the way the tweet timeline functions.

But it does align with Musk’s free speech approach, and reduces the onus on Twitter, to some degree, in moderating speech. It will still need to assess each instance, case-by-case, but users themselves will be less aware of penalties – though Musk has also flagged adding more notifications and explainers to outline any reach penalties as well.

“Account suspension will be reserved for severe or ongoing, repeat violations of our policies. Severe violations include but are not limited to: engaging in illegal content or activity, inciting or threatening violence or harm, privacy violations, platform manipulation or spam, and engaging in targeted harassment of our users.

Which still means that a lot of content that these users had been suspended for previously would still result in suspension now, and it leaves a lot up to Twitter management in allocating severity of impact in certain actions.

How do you definitively measure threats of violence or harm, for example? Former President Donald Trump was sanctioned under this policy, but many, including Musk, were critical of Twitter’s decision to do so, given that Trump is an elected representative.

In other nations, too, Twitter has been pressured to remove tweets under these policies, and it’ll be interesting to see how Twitter 2.0 handles such, given its stated more lax approach to moderation, despite its rules remaining largely the same.

Already, questions have been raised on this front – Twitter recently removed links to a BBC documentary that’s critical of the Indian Government, at the request of India’s PM. Twitter hasn’t offered any official explanation for the action, but with Musk also working with the Indian Government to secure partnerships for his other business, Tesla, questions have been raised as to how he will manage both impacts concurrently.

In essence, Twitter’s approach has changed when it chooses to do so, but the rules, as such, will effectively be governed by Musk himself. And as we’ve already seen, he will make drastic rules changes based on personal agendas and experience.

Twitter says that, starting February 1st, any previously suspended users will be able to appeal their suspension, and be evaluated under its new criteria for reinstatement.

It’s also targeting February for a launch of its new account penalties notifications.



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4 new social media features you need to know about this week

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New social media features to know this week


Social media never stands still. Every week there are new features — and it’s hard for the busy comms pro to stay up-to-date on it all.

We’ve got you covered.

Here’s what you need to know about this week.

LinkedIn

Social media sleuth Matt Navarra reported on Twitter that LinkedIn will soon make the newsletters you subscribe to through the site visible to other users.

This should aid newsletter discovery by adding in an element of social proof: if it’s good enough for this person I like and respect, it’s good enough for me. It also might be anopportunity to get your toe in the water with LinkedIn’s newsletter features.

Instagram

After admitting they went a little crazy on Reels and ignored their bread and butter of photographs, Instagram continues to refine its platform and algorithm. Although there were big changes over the last few weeks, these newer changes are subtler but still significant.

 

 

First, the animated avatars will be more prominent on profiles. Users can now choose to flip between the cartoony, waving avatar and their more traditional profile picture, rather than picking one or the other, TechCrunch reported, seemingly part of a push to incorporate metaverse-esque elements into the app.

Instagram also appears to have added an option to include a lead form on business profiles. We say “appears” because, as Social Media Today reports, the feature is not yet listed as an official feature, though it has rolled out broadly.

The feature will allow businesses to use standard forms or customize their own, including multiple choice questions or short answer.

Twitter

In the chaotic world of Twitter updates, this week is fairly staid — with a useful feature for advertisers.

The platform will roll out the ability to promote tweets among search results. As Twitter’s announcement points out, someone actively searching for a term could signal stronger intent than someone merely passively scrolling a feed.

Which of these new features are you most interested in? That LinkedIn newsletter tool could be great for spreading the word — and for discovering new reads.

Allison Carter is executive editor of PR Daily. Follow her on Twitter or LinkedIn.

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