Meta suffers 13.7 billion loss in 2022 + other stories for the week

Meta CEO Mark Zuckerberg continues his quest to popularise the metaverse, but the company is losing billions in the process. Meta released its fourth quarter and 2022 yearly financial results on Wednesday, and the report tells a dire financial tale for the big tech firm.

According to the reports, Meta’s Reality Labs division experienced a total loss of $13.7 billion in 2022. Despite the heavy losses, Zuckerberg and Meta seem keen to continue with the metaverse plans. Since the technology is still emerging, metaverse has not fully taken off, but Meta is hoping that it can be the first mover in this burgeoning market

Here are the major crypto stories from all over the world this week:

Tether revealed to be owned by inexperienced founders 

According to a Wall Street Journal article this week, new information about the founders and owners of Tether holdings has emerged. The documents reviewed by the WSJ revealed that a bunch of founders and owners with inadequate experience in financial terms allegedly runs the $68 billion stablecoin empire.

According to the report, one of the founders was earlier a child actor who turned into a cryptocurrency investor, and another was an ex-plastic surgery practitioner who steered his way into electronics and cryptocurrencies.

Recall that the recent implosions in the crypto space were caused by the sheer inexperience and ineptitude of the firm’s founders, a reason why more spotlight is being shed on this aspect. However, Tether remained robust throughout the bear market of 2022 and has been stable in the new year. 

Binance lauds UK for crypto policy

Binance has praised the United Kingdom’s decision to establish a framework to regulate cryptocurrencies better, spurring adoption in the region. In a tweet on Wednesday, Binance said they welcome the government’s steps.

You can read about the United Kingdom’s crypto proposals here:

UK lays out plans to regulate crypto industry after FTX’s collapse

Binance believes a stable regulatory environment will spark innovation and create trust. These are the two ingredients that will foster long-term growth in the industry. Subsequently, the exchange is reviewing the details of the report’s consultation and looks forward to contributing to the process.

Meta records loss in 2022

The Facebook parent company lost $13.7 billion in 2022 due to its fixation on building a metaverse, an effort led by its ‘Reality Labs’ division. In Q4 2022, the company recorded a $4.2 billion loss. Other areas showed marginal growth, like daily and monthly active users. However, it has not generated much, bringing in $2.16 billion last year and $727 million last quarter.

Meta has consistently been strategising on the metaverse, offering updates over the last year. In December 2022, the company stated that it would devote 20% of its costs to the metaverse in 2023. Also, it began testing members-only spaces in its Horizon Worlds metaverse recently 

Read also:

Pick n Pay to accept Bitcoin in 1500 stores across South Africa

Documentary to spotlight SBF – CZ relationship

The FTX saga and the developments that led to the crypto exchange’s collapse will be framed in a new documentary focusing on the volatile relationship between Sam Bankman-Fried and one of his fiercest critics, Binance founder Changpeng Zhao.

According to The Hollywood Reporter, the production is a partnership between Fortune and Unrealistic Ideas. The documentary will focus on how Bankman-Fried, born into a prominent academic family with political connections, and Zhao, whose family fled from China to Canada when he was 12, came to be two of the most relevant figures in the crypto space and how their relationship alternated between being allies and rivals.

That’s all from this week. See you same time next week!