Summary
- Internally referred to as "Arena," Meta is developing a prediction market platform that allows users to make forecasts using points.
- The company aims to leverage its vast user base across Facebook, Instagram, and other platforms to promote mainstream use.
- This initiative represents another venture into crypto-related technology, following Meta's prior efforts with stablecoins and the metaverse.
After stablecoins and the metaverse, Meta is now turning its attention to prediction markets.
Under the leadership of Mark Zuckerberg, Meta has been actively pursuing various crypto-related technologies, and it appears the company is gearing up for its next venture, influenced by the rising popularity of platforms like Polymarket and Kalshi, as reported by The New York Times on Tuesday.
Zuckerberg has reportedly endorsed the development of an app called "Arena," which has led a small team to work on a platform that enables users to make predictions about events using points instead of real money.
With millions of users on platforms such as Facebook and Instagram, Meta hopes that its extensive customer base will facilitate the adoption of its prediction market, according to two employees familiar with the project.
Previously, Meta attempted to launch a prediction market with an app named Forecast, which debuted in 2020. This app aimed to allow users to predict future events during the pandemic-inspired crypto boom, but it was discontinued about two years later.
This new initiative is considered experimental, but it highlights a growing interest in prediction markets, attracting attention from various sectors, including established financial institutions like the Intercontinental Exchange, gambling enterprises like DraftKings, and fintech companies such as Robinhood.
This is not Meta's first foray into a crypto-related sector, especially as calls for regulatory measures grow among lawmakers, who currently argue that there is a need for safeguards to protect consumers in prediction markets.
The company encountered significant opposition from Congress in 2019 when it announced its stablecoin project, Libra, along with its digital wallet, Calibra. This initiative was eventually put on hold after being rebranded to Diem, and its assets were sold to the now-defunct Silvergate Bank.
Additionally, Meta has reportedly invested $80 billion into Zuckerberg's metaverse vision. Earlier this year, the company announced it would halt the development of new virtual reality experiences for Horizon Worlds, which was once seen as a central component of its metaverse strategy.
Moreover, Instagram's brief experiment with NFTs ended after just a year, despite efforts to popularize digital collectibles, which were discontinued shortly after their introduction.
Nevertheless, Meta has shown support for cryptocurrency in other areas. In April, the company, which faced criticism for a pair of fake legs on Zuckerberg’s avatar, started allowing creators to receive payments in USDC stablecoin directly to their crypto wallets across multiple networks.