Meta has decided to close its cryptocurrency wallet Novi, which launched about a year ago. The unpredictability of the cryptocurrency markets has prompted Meta to reevaluate its investments in this area.
Novi was designed to facilitate cryptocurrency transfer transactions. Initially, Meta said it would make crypto transactions “as easy as sending a message” with this system. The company aimed to create its own ecosystem through its own crypto Libra (Diem) and Novi. The recent sharp decline of Bitcoin and the extreme fluctuation in the cryptocurrency markets caused this project to be shelved. Last January, the Diem currency was also shut down by the company.
Meta’s crypto wallet services will be completely terminated as of September 1. Users who already have money in Novi will be able to continue trading until July 21.
Meta has given up on its crypto wallet Novi but continues its work in the metaverse area at the same pace. In a statement made by the company, it is stated that the technologies developed for Novi will be used in metaverse studies.
On the subject, Meta made the following statement to Bloomberg:
“We are already leveraging the years spent on building capabilities for Meta overall on blockchain and introducing new products, such as digital collectibles. You can expect to see more from us in the web3 space because we are very optimistic about the value these technologies can bring to people and businesses in the metaverse.”
Meta’s company statement says that the technologies already developed for Novi will be used to develop new products. On the other hand, these statements somewhat contradict the statements of the company’s founder, Mark Zuckerberg. He says that Meta’s investments will start to generate net income after at least seven to ten years, rather than in the short term.
The “collapse” of the Bitcoin and cryptocurrency markets has affected many of the companies operating on the Web3. Investors have started to think more when investing in blockchain-based projects. Technology companies and developers are looking for solutions to be less affected by these fluctuations.
