Meta recently reported that it will shut down its digital wallet facility, Novi from September 1, 2022, barely after a year it started the project. This crypto wallet facility is one of Meta's most ambitious projects that was aimed to establish the company's foothold in the crypto market. Based on Meta's claims, Novi was established as the social networking giant's money-transfer service to empower the platform's cryptocurrency investors.
The wallet was supposed to be interoperable across different metaverse experiences, reflecting the goals of the newly created Metaverse Standards Forum that is supposed to maintain the industry-wide standards across virtual reality and augmented reality experiences. But according to tech experts, Meta has already figured out that Novi was not supposed to work out. The service was created to be a safe way for its users to send and receive crypto assets the service was supposed to work with Diem. But the collaboration did not take place because Diem collapsed in February of 2022.
The company and its partners were forced to stop operations of Diem, which is a similar cryptocurrency venture that started in 2019. Another significant setback to Meta's ambitions was its announcement in 2021 when David Marcus, one of the Meta executives, said that he would depart the business to pursue other entrepreneurial opportunities.
Meta's failure to instate Novi in the crypto market came at a time when the crypto market is unraveling due to various macroeconomic factors. Besides, there are also massive sell-off issues at big crypto companies like Three Arrows Capital and Celsius Network, which triggered more investors to flee the market. Currently, Zuckerberg and his team are focused on expanding the company's reach in the metaverse domain. The company is also planning to recruit thousands of users to the immersive digital domain, which will further help with the company's revenue growth.
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