A Shift In The Meta — Facebook’s Pivot Away From Web 3

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Coinmonks

4 min readMar 14, 2023

When Facebook rebranded to Meta in 2021, I took it as a sign that times were changing and we are entering a new era of technological innovation powered by Web 3. After all, I believe Facebook represents the shift from Web 1 to Web 2 when we went from static web pages to user-generated content.

Through the early 2000’s the internet consisted of websites owned by brands and corporations. With Facebook, we saw a shift in what made the internet compelling. The content on Facebook was comprised of posts from our friends and family and the platform made being on the internet about being with our peers.

Over time we saw normal people attract an online following and some people went from relative obscurity to being famous on the internet. This trend only accelerated with platforms like Twitter, Youtube, and Instagram which gave rise to the modern creator economy as we know it.

Zuckerburg could spot trends from miles away and he has always been quick to pivot. He saw the shift from desktop to mobile and pushed Facebook to adopt a mobile-centric strategy. He also purchased Instagram to solidify Facebook’s positioning in the modern era of mobile-first applications and social media.

However, the latest pivot from Facebook to enter the Metaverse may have been a step too far. In 2021, Facebook rebranded to Meta.

I was confused by the rebrand initially.

That was when someone explained the Metaverse to me for the first time.
It’s the world of Ready Player One except it’s not just a work of fiction. Facebook was attempting to create the metaverse using Web 3 technology. They owned Oculus and had VR capabilities in-house so the synergy was already there. I grew up watching the Dot Hack anime and Sword Art Online. I understood the potential of virtual worlds powered by VR headsets and the immersion potential that existed with such tech, especially in video games. Moreover, they were going to integrate blockchain and NFTs into existing platforms in an effort to onboard the masses. If Meta could pull this off, it would be a massive technological feat.

It was around this time I quit my job in the creator economy to chart a course in the Web 3 industry.

The crypto space was booming at the time and the momentum felt unstoppable.

However, a lot has changed over the last few months.

Meta’s first attempt at a metaverse, Horizon Worlds fell short of expectations netting only 200,000 users in the year post-launch.

This was when we saw the first round of layoffs.

Meta is now dropping NFT support for Instagram and Facebook as well as laying off 10,000 additional employees likely involved in their Web 3 initiative.

“We’re looking closely at what we prioritize to increase our focus. We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses.” — Stephen Kasriel Meta’s head of Commerce and Financial Services

I still hold quite a lot of hope for the future of Web 3 and the metaverse so it’s difficult to see things play out this way.

Perhaps the metaverse was just a bull-run pipe dream or too ahead of its time.

It seems clear the world is not ready for the metaverse especially not one led by Meta.

As always, thank you for reading.

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