💻Meta's Metaverse Division Lost $2.8 Billion - TWJ #196

Losing money is the new meta.

Jul 28, 2022

Hi folks,

In this write-up, I cover how most crypto projects are not focusing hard enough on implementing a sustainable business model. As an industry, we need to do better and brainstorm new concepts for projects to make money without resorting to predatory pseudo-ponzinomics machinations. I don’t claim to have all the answers, but the first step in solving a problem is to admit that there is one.

Pensive Pragmatism by Marco Manoppo

Unsustainable Crypto Business Models

Disclaimer, NFA, all that legal stuff: All the information presented on this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice…

2 years ago · 1 like · 1 comment · Marco Manoppo

Here are the quick takeaways:

Founders need to expand their business acumen and learn about non-crypto businesses.
Understand which business model is a race to the bottom and which is sustainable in the long term.
There are hard-to-solve important problems that require deep research work, which might never become good businesses.
The open-sourced, fork-able, and decentralized nature of crypto makes it challenging to predicate your business model on a mechanism that’s copiable.
Selling tokens for revenue might be controversial, but it is one of the current working models.

In today’s issue:

The crypto market is up with its total market cap above ~$1 trillion. Lido DAO (LDO) has been the best performer in the top 100 in the past 7-d. The Fed raised interest rates by 75 bps and signaled more hikes.

In other news, Meta’s metaverse division lost $2.8 billion in Q2 2022, Solana plans to open a retail store in NYC, and FTX.US opens US stock trading.

Photos of Mark Zuckerberg Wearing Sunscreen, Surfing in Hawaii Go Viral: Memes

We’re continually improving our content, please reach out if you have ideas or want us to recap another market segment.

- Curated by Marco Manoppo (@manoppomarco)

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📰Market News

⎆Meta’s Metaverse Division Lost $2.8 Billion in Q2 2022

Meta’s Metaverse division, called Reality Labs, reported a loss of $2.8 billion in Q2 2022 as the firm continues its R&D efforts in delivering the promised neverland. The firm also faces more challenges as it was sued by the FTX, alleging FB for trying to monopolize the metaverse industry.

Lina Khan’s impact as the head of FTC has relatively been underwhelming. This might be a pivot in which the agency becomes more aggressive toward big tech giants.

⎆Solana Plans to Open a Retail Store in NYC

In an extremely smart move, the Solana blockchain is preparing to open retail stores and a Web 3.0 “Embassy” in NYC.

Marco Manoppo @ManoppoMarco

Honestly the #1 thing Solana does best is that it actually operates like a startup and tech company. $SOL You might hate that its not as “decentralized” but its doing great strategic initiatives (phones, now stores).

Solana Spaces @solanaspaces

Welcome to the world of Solana, IRL. Coming very soon to NYC. Here's the first visual of what the storefront will look like. See 🧵 for the full story of why we're building this. https://t.co/xN7iQquaoU

⎆FTX.US Opens Us Stock Trading

Crypto exchange FTX continues its horizontal and vertical integration. While they’re facing tough challenges in their efforts to revamp the derivative settlement system, the FTX US division achieved a win by enabling US stock trading to all users in 50 American States.