Category: Facebook

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Crypto News Facebook Metaverse

US Regulator Sues Meta to Prevent it from Owning the Entire Metaverse

The US Federal Trade Commission (FTC) has shared a media release indicating its intentions to sue Meta and block its acquisition of Within, a VR fitness app maker.

The lawsuit, filed in the US District Court for the Northern District of California, comes off the back of rising concerns over Meta’s plans for metaverse expansion:

Meta Marches Toward a Monopoly

The purchase of Within may not be so significant on its own; however, the FTC has concerns it could be Meta’s first step towards holding a monopoly over the metaverse:

In its media release, the FTC stated that it sought to block the purchase and alleges that Meta is attempting to stifle VR fitness competition from independent studios. The commission’s final vote was 3-2 in favour of blocking the deal.

With Meta already owning ‘Beat Saber’, which many deem a fitness app, there is concern that the purchase of Within could stifle competitive innovation. However, Nikhil Shanbhag, Meta’s vice president and associate general counsel, has challenged this notion.

https://theorg.com/org/meta/org-chart/nikhil-shanbhag

The idea that this acquisition would lead to anticompetitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible.

Nikhil Shanbhag, Meta vice president/associate general counsel

The FTC’s plans to prevent the purchase of Within are not the only new information to come to light this week. Meta’s latest earnings report for Q2 revealed that the tech giant’s Facebook Reality Labs (FRL) division recorded a loss of US$2.81 billion, only a slight improvement on its Q1 loss of US$2.96 billion.

Meta is seemingly not fazed by these figures. Instead, the company is focusing on establishing its metaverse sector for what it hopes will be a successful 2030s decade.

Other Metaverse Developments

Of late, there have been multiple developments regarding the metaverse and its adoption. In April, Meta announced plans to open a physical metaverse-themed store in the San Francisco Bay area. Plans for the store include wall-to-wall curved LED screens to display what users would see when using virtual reality (VR) headsets. Its overall purpose is to provide demos and show the public how VR and metaverse tech work.

This week also saw new initiatives from Sandbox creator Animoca Brands, which has announced an alliance with several prominent Web3 companies to develop a new decentralised autonomous organisation (DAO). The DAO will prioritise users’ asset ownership capabilities and return autonomy to the owners of digital assets.

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Crypto News Facebook NFTs

Meta to Start Testing Digital Collectibles on Instagram

Meta, formerly known as Facebook, will start testing digital collectibles on a small number of users on its Instagram platform, according to Meta CEO Mark Zuckerberg.

A small group of creators and collectors in the US on Instagram will be able to use NFTs as profile pictures in a move similar to what Twitter has done in recent months. The test group will be able to post NFTs at no cost by linking their third-party digital wallets in-app. Each NFT will get a special “shimmer” around the photo attributing the piece to both creator and owner.

Ethereum and Polygon Provide Initial Blockchain Support

Ethereum and Polygon are blockchains that will be supported, with Flow and Solana launching soon. Rainbow, MetaMask and Trust Wallet, along with Coinbase, Dapper and Phantom, will be compatible with the platform.

Zuckerberg commented: “Meta plans to bring NFTs to apps in our family. This week, we’re starting to test digital collectibles on Instagram so creators and collectors can display their NFTs on their profile. Similar functionality is coming to Facebook soon, along with augmented reality NFTs on Instagram Stories via Spark AR [a free studio that allows businesses and private users to create their own filters] so you can place digital art into physical spaces.”

Adam Mosseri, head of Instagram, tweeted in agreement:

The news comes after speculation that Meta will support NFTs from Ethereum, Solana and Polygon, and confirms the rumour raised last year that the social media giant would support NFTs via the Novi digital wallet.

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Crypto News Facebook Metaverse Social media Virtual Reality

Meta Launches a Metaverse-Themed Store in San Francisco

Meta, the parent company of Facebook, will open a physical metaverse-themed store in the San Francisco Bay area. A feature of the store will be wall-to-wall curved LED screens that display what users see using virtual reality (VR) headsets.

In an April 25 announcement, Meta said it would be opening its doors in the Burlingame, California location on May 9. The store, situated on the Meta campus, is aimed at providing interactive demos for the company’s hardware products, including VR headsets, video communications displays, and smart glasses.

Virtual reality now in the hands of Meta Store customers. Source: wsj.com

According to store head Martin Gilliard, “The Meta Store is going to help people make that connection to how our products can be the gateway to the metaverse in the future.” He added:

We’re not selling the metaverse in our store, but hopefully people will come in and walk out knowing a little bit more about how our products will help connect them to it.

Martin Gilliard, store head, Meta Store

Backlash Greets Meta’s Metaverse Vision

Facebook rebranded as Meta in October 2021 saying it was time it focused its efforts on expanding beyond social media, later announcing its metaverse vision for connecting online social experiences and the physical world.

Although its plans may be well-intentioned, Meta has since received a lot of backlash in the Twittersphere:

Meta Makes More Moves in the Metaverse

Only a week ago, Meta announced the launch of a digital economy that will allow users to sell virtual goods for its VR game as it continues to expand in the metaverse. Meta is also looking into introducing non-blockchain-based virtual tokens and loans as it seeks new revenue streams against a backdrop of fierce competition in the social media landscape.

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Crypto News Facebook Gaming Metaverse Virtual Reality

Meta Launches Digital Economy Allowing Users to Sell Virtual Goods for its VR Game

The metaverse may yet be years away in terms of functionality, but that hasn’t stopped Meta (nee Facebook) rolling out the first stages of a new digital economy to underpin its role in that brave new world.

The social media behemoth is already testing features that will enable creators to make money trading virtual items and effects in the company’s virtual reality (VR) game, Horizon Worlds.

According to Meaghan Fitzgerald, Horizon’s product marketing director, creators will be able to trade anything from virtual accessories to VIP access to their own private zone in the metaverse. American participants in the pilot will also be able to earn bonuses from a US$10 million fund set up by Meta to incentivise creators.

Meta May Pocket up to 50% of Bonus Payouts to Creators

Meta says it will reward creators whose virtual worlds prove especially popular among users with monthly bonus payouts. While that program will not be subject to fees, the virtual items marketplace could see Meta take a cut of up to 50 percent.

As it stands, Meta will take a 25 percent cut of the percentage left after the platform fee; with Meta’s Quest Store charging a 30 percent commission, that leaves creators with slightly over half the sale price for each item. Meta evidently thinks that’s a fair thing:

We think it’s a pretty competitive rate in the market. We believe in the other platforms being able to have their share.

Vivek Sharma, VP of Horizon Worlds, Meta

That said, Meta considers Apple’s 30 percent take rate as “too aggressive” for the iPhone ecosystem and has intentionally lowered its mobile rate for certain in-app purchases.

For more on how Horizon Worlds will work, Meta has helpfully supplied a video (see below) featuring VR versions of CEO Mark Zuckerberg and his Horizon team of creators. Try not to be disconcerted by the fact that each avatar only exists from the waist up, yet they require virtual stools to “sit” on:

Amid all this talk of virtual worlds, Zuckerberg announced earlier this month that Meta is exploring the creation of non-blockchain-based virtual currencies, which employees have internally dubbed “Zuck Bucks“. We can now perhaps see where he’s going with this idea.

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Facebook Social media Stablecoins

Meta (Facebook) Turns to ‘Zuck Bucks’ in Latest Virtual Currency Move

Since offloading its failed Diem stablecoin intellectual property and rebranding to Meta, Facebook is looking to introduce non-blockchain-based virtual tokens and loans as it seeks new revenue sources against a backdrop of fierce competition in the social media landscape.

Virtual Currencies Dubbed ‘Zuck Bucks’

According to a report by the Financial Times, Facebook is exploring the creation of non-blockchain-based virtual currencies which employees internally have dubbed “Zuck Bucks”. Unlike Diem, its doomed blockchain stablecoin project, Meta is said to be leaning towards in-app tokens centrally controlled by the company, much like those used in gaming apps such as the Robux currency in popular gaming platform Roblox.

The company is also considering rewards for users who contribute meaningfully on its platforms – for example, within Facebook groups you may have “social tokens” or “reputation tokens”. Instagram by contrast could have “creator coins”.

Meta Looks to New Revenue Streams

Amid declining profits and users, as well as competition from TikTok, Facebook has of late increasingly turned to other revenue streams for future growth.

In addition to creating a token economy, the US$600 billion social network behemoth is also considering traditional financial services, such as loans for small to medium-sized enterprises. Details, however, remain sparse:

We have no updates to share today. We continuously consider new product innovations for people, businesses, and creators. As a company, we are focused on building for the metaverse and that includes what payments and financial services might look like.

Spokesperson for Meta (unnamed)

Moves to introduce non-fungible tokens (NFTs) are more advanced, as founder and chief executive Mark Zuckerberg recently confirmed plans to integrate NFTs into Instagram in the “near term”.

As news broke of Facebook’s latest attempt to remain in the social media driver’s seat, Twitter was awash with criticism of both Facebook and the controversial founder himself:

At this stage, it’s too soon to tell whether these initiatives will dilute the company’s growth efforts or otherwise accelerate it towards new heights. Time will be the arbiter.

Categories
Australia Crime Cryptocurrency Law Facebook Scams Social media

Australian Consumer Watchdog Sues Meta Over Crypto Scam Ads

The Australian Competition and Consumer Commission (ACCC) has announced it will be suing Meta over the company’s failure to block crypto scam advertisements involving Australian public figures that are in breach of Australian consumer law.

person holding silver iphone 6 https://unsplash.com/photos/iurEAyYyU_c
ACCC takes action against Meta, the owner of Facebook and Instagram. Source: ABC

False Endorsements of Crypto Investments

Dick Smith, David Koch and Andrew Forrest are some of the prominent Australian personalities unwittingly involved in a series of crypto scam ads circulating on Facebook. The ads claim that the featured celebrities have hugely benefited from cryptocurrency investments, then direct users to scam websites on the strength of these false endorsements.

The consumer watchdog believes that Meta is not doing enough to prevent the circulation of these ads on both Facebook and Instagram. The personalities in the ads have not given any permission for their names and faces to be used in the money-making schemes, and users who have engaged with this material have reportedly been the victims of intense pressure tactics, including phone calls asking for funds.

Rod Sims, the ACCC’s chair, outlined his disappointment with Meta’s lack of action and solutions in a March 18 media release:

https://www.accc.gov.au/media/image-library

Meta should have been doing more to detect and then remove false or misleading ads on Facebook, to prevent consumers from falling victim to ruthless scammers.

ACCC chair Rod Sims

Sims stated that in one circumstance an individual consumer lost A$650,000 to one of these scams. The ACCC will be seeking injunctions, penalties, declarations, costs, and other orders from Meta to ensure the practice does not continue.

Australia Cracks Down on Crypto Scams

News of the ACCC’s legal action against Meta follows an investigation into how Australians lost over A$70 million in 2021 through investment scams alone.

Scamwatch reported in July last year that investment scams involving cryptocurrency and other digital assets were on the rise. Other prominent fraud-related practices have included romance scams, personal identity theft and illegal crypto mining.

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Facebook Metaverse NFTs

Zuckerberg Confirms Instagram Will Soon Feature NFTs

Mark Zuckerberg, founder and CEO of Meta, has confirmed that non-fungible tokens (NFTs) will soon be coming to Instagram.  

The plan was revealed in an interview with Shark Tank’s Daymond John at an SXSW convention in Austin, Texas, US. The goal is for Instagram to become compatible with NFTs in “the near future” – over the next several months.

This appears to be another stepping stone in Meta’s path to the metaverse. It’s unclear at this point how the facility may look on the platform, though Zuckerberg did detail that Instagram users will have the option to mint their own NFTs.

NFTs on Facebook as Well

Instagram CEO Adam Mosseri admitted in December 2021 that the social media giant was considering integrating NFTs, saying that at the time the company was “actively exploring” the possibility. January 2022 saw Meta begin experimentation with how an NFT marketplace might work on the platform. Meta wanted to offer users the option to create and display NFTs on their Facebook and Instagram pages, intentions that are now being acted on.

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Australia Crypto News Facebook Scams

Australian Consumer Watchdog Investigates Meta (Facebook) for Crypto Scam Ads

The ACCC (Australian Competition and Consumer Commission) is investigating Facebook’s parent company Meta for allowing crypto scammers to advertise on the social network using fake articles or requesting crypto transfers.

Investment scams in Australia increased more than 53 percent in 2021, with Australians losing over A$70 million. Now the ACCC is probing Meta for allowing crypto scammers to advertise on Facebook, defrauding Aussies hundreds of thousands of dollars.

Mining Magnate Sues Meta for Misrepresentation

This follows news last week, reported by Crypto News Australia, of Fortescue Metals chairman Andrew Forrest pursuing legal action against Meta for allowing crypto scammers to post fake articles using his image and name, along with those of other business identities and celebrities.

Forrest is accusing the social media giant of breaching Australia’s AML (anti-money laundering) laws and is also pursuing a related civil case in California.

Like Dr Forrest, we consider that Meta should be doing more to detect, prevent and remove false or misleading advertisements from the Facebook platform so that consumers are not misled and scammers are prevented from reaching potential victims. The ACCC will continue to consider whether Meta’s conduct raises concerns under Australian Consumer Law.

ACCC chair Rod Sims, The Australian

Forrest is not the only high-profile Australian whose identity has been co-opted to promote cryptocurrency scams. Others include actor Chris Hemsworth and TV commentators Waleed Aly and David Koch.

Fake Crypto News Australia Website

Notably, a fake Crypto News Australia website on Facebook is promoting “crypto bonuses”, requesting users to send ETH to a specific wallet to receive triple the amount sent. Keep in mind that Crypto News Australia will never ask for crypto or send crypto to readers.

Fake websites, fake wallets or exchanges, impersonation giveaways -there are so many types of cryptocurrency-related scams that it can be hard to keep track of them all. Make sure you stay safe and check out our guide on the Top 10 Bitcoin Scams to Avoid.

Categories
Australia Crime Crypto News Cryptocurrency Law Facebook Social media

Australian Billionaire Launches Criminal Case Against Meta for Fake Crypto Ads

Australian mining magnate Andrew ‘Twiggy’ Forrest has launched criminal proceedings against Mark Zuckerberg’s Meta conglomerate, alleging its Facebook social media arm breached Australia’s money laundering laws by failing to police false crypto advertisements.

Forrest, billionaire chairman of iron ore giant Fortescue Metals, has filed his criminal lawsuit against Meta in the Magistrates Court of Western Australia, having already launched related civil proceedings in the US state of California last September.

In charges brought under the Australian Commonwealth Criminal Code, Forrest alleges Facebook has repeatedly failed to remove posts by scammers that used his image, among those of other celebrities, to promote crypto investments on the site since March 2019.

Andrew ‘Twiggy’ Forrest, chairman of Fortescue Metals. Source: cnn.com

According to Forrest’s complaint, the company’s failure to prevent or remove the ads constitutes “criminally reckless” behaviour. Forrest further alleges that Facebook “failed to create controls or a corporate culture to prevent its systems being used to commit crime”.

‘World-First’ Criminal Action Against the Social Media Giant

In a statement, Forrest said he was launching the “world-first” action on behalf of “everyday Australians” to protect their savings from being “swindled away by scammers”.

“I’m concerned about innocent Australians being scammed through clickbait advertising on social media,” Forrest said. “I’m committed to ensuring social media operators don’t allow their sites to be used by criminal syndicates.

Social media is part of our lives, but it’s in the public interest for more to be done to ensure fraud on social media platforms is eliminated or significantly reduced.

Andrew ‘Twiggy’ Forrest, Australian mining magnate

An initial hearing of Forrest’s complaint will take place on March 28, with the separate civil case pending in the Superior Court of California. A Meta spokesperson said the company was unable to comment on either court action, but provided a broader statement about scams on Facebook:

We don’t want ads seeking to scam people out of money or mislead people on Facebook – they violate our policies and are not good for our community. We take a multifaceted approach to stop these ads, working not just to detect and reject the ads themselves but also block advertisers from our services and, in some cases, take court action to enforce our policies. We’re committed to keeping these people off our platform.

Statement from Meta spokesperson

Meta Share Price Tanks, $200B Wiped Off Market Cap

It’s been a pretty ordinary start to the year for Meta, whose share price plunged 26 percent this week in what was the biggest single-day slide in market value for a US company. The drop erased over US$200 billion from Meta’s market capitalisation and around US$29 billion from CEO Zuckerberg’s net worth.

Yet Meta is not the only entity under fire for its advertising practices, with Spain, Singapore and the UK the latest jurisdictions to have made changes to their crypto advertising regulations. Last year, Google reviewed its crypto advertising policy after lifting its ban and adding specific requirements to which advertisers have to adhere.

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Facebook Institutions Stablecoins

Meta’s Diem Plans Fail, Zuckerberg in Talks to Offload Intellectual Property

Diem (formerly Libra), the stablecoin backed by Mark Zuckerberg’s Meta, hasn’t had the best start to the year. It appears that the Diem Association is selling off its intellectual property to Silvergate Capital for US$200 million, The Wall Street Journal reports, citing an unnamed source familiar with the matter.

Diem Fails to Receive Regulatory Approval

The Diem project was presented by Zuckerberg’s Meta (formerly Facebook) in June 2019, formed under the name of the Diem Association. The Libra stablecoin was meant to be backed by a handful of global currencies such as the US dollar, in similar fashion to the business model of Tether’s USDT or USDC.

The Diem Association secured Silvergate Capital, a bank that serves blockchain companies, as the exclusive issuer of the Diem USD. However, Zuckerberg was soon confronted with obstacles imposed by US regulatory bodies and abroad.

The lack of security and privacy was the main concern for regulators, warning off investors including eBay, Mastercard, Visa and PayPal – all of whom resigned as founding members in a single day. Zuckerberg then rebranded Libra to Diem, but it only made things worse.

Diem Association Trying to Repay Investors

The Diem Association is now selling its intellectual property to Silvergate to repay investors, which include tech and investment concerns such as Coinbase, Spotify, a16z, Ribbit Capital, and more high-profile institutions.

It wasn’t as if the news hurt the crypto community. We need to remember that Zuckerberg and his businesses have attracted controversial accusations ever since news broke in 2018 that Facebook had allowed Cambridge Analytica to harvest sensitive data from 87 million users.