Maxine Waters' Interest in Meta's Crypto Patents: An Insight

• Understanding NFTs and Their Impact on Brands
• NFTs and Social Media
• The Unexpected Dip in Crypto Market and NFTs
• The Adventures and Misadventures of Meta in Crypto
• Congress Questions Meta's Involvement in Crypto
• Are Meta's Crypto Plans a Matter of National Interest?
• Patents and Crypto Activity
• What Does the Future Hold?

Understanding NFTs and Their Impact on Brands

In the early stages of 2022, Arun Sundararajan, a professor of Entrepreneurship at New York University's Stern School of Business, contributed to a Harvard Business Review case study. The study explored how established brands could leverage non-fungible tokens (NFTs) right before the cryptocurrency market saw a major drop. He discussed how technology companies, including Twitter and Facebook (now known as X and Meta), were enabling more user customization through NFT avatars.

NFTs and Social Media

Sundararajan argued that if designed correctly, NFTs could enhance conspicuous consumption prompted by social media. This would allow individuals to authentically and expansively showcase their offline lives in their online spaces. He believed that NFTs were on the path to becoming mainstream in 2022.

The Unexpected Dip in Crypto Market and NFTs

However, within a few weeks, the cryptocurrency market experienced a dramatic fall, and NFTs' value plummeted. Meta had to discontinue its NFT functionality on Instagram and Facebook to focus on areas where they could create a significant impact.

The Adventures and Misadventures of Meta in Crypto

Meta's journey into the realm of cryptocurrency has seen many hurdles. In 2019, it hatched a plan for the Libra stablecoin, which was envisioned as an alternative global currency. However, this plan was met with regulatory backlash. Following this, the company launched Diem, a downsized version of the stablecoin, only to pull the plug on it later.

Congress Questions Meta's Involvement in Crypto

Meta's cryptic relationship with cryptocurrency doesn't end there. Recently, Rep. Maxine Waters, a ranking member of the Democratic Financial Services Committee, expressed concerns over some blockchain-related patents the company filed. The patents in question were from 2022. Waters' concerns stem from the belief that these patents show Meta's intent to increase its involvement in the digital asset market.

Are Meta's Crypto Plans a Matter of National Interest?

Waters has taken interest in Meta's crypto-related research and development, questioning whether it has any plans for cryptocurrency at all. She has specifically inquired about whether Meta has any future stablecoin plans, partnerships, plans to launch a payment platform, or whether its technology enables cryptocurrency creation, mining, storage, transmission, or settlement.

Patents and Crypto Activity

Although Meta's patent applications cover a broad range of ideas, including digital asset wallets and hardware, chain validation tech, and blockchain as a service advertising, it does not necessarily mean that the company will actually implement these ideas. Patents are often filed as a defensive measure or to create an illusion of progress. Therefore, these patents may not be an accurate indication of Meta's activity in cryptocurrency.

What Does the Future Hold?

As the cryptocurrency market rebounds, Meta appears to be keeping its distance. However, its activities are being closely watched. One thing is clear - the world of cryptocurrency remains uncertain and volatile, and only time will tell how major players like Meta will navigate this complex landscape.

Edited by Jonathan Stoker