Facebook's rebrand

Oct 22, 2021

As creator platforms are losing the trust of their members, gamer platforms are divided by NFTs while Facebook may be Facebook no longer.

Legitimacy crisis

Creators are questioning the terms of their relationship with the platforms that hold them hostage.
Creator platforms are trying to regain legitimacy while keeping control of monetization terms.
Building better alternatives: (1) ownership and portability of data, (2) participatory decision making and cooperative business models, and (3) decentralization via crypto and open-source protocols.

From Platformer, by Casey Newton

The rise of NFTs and Crypto payments are causing generational divides between gaming platforms.
As Steam shuts its doors to any NFT-based game, banning items to have real-world value, their rival The Epic Games Store announces it is ‘open’ to featuring NFTs.
The question of whether to “shut it down” or “explore the Crypto craze” will soon lead all platforms into picking a side that will determine their future.

From Digital Native, by Rex Woodbury

Axie Infinity is a leader within the new digital economy, here are its economics:

Axie has 2 in-game tokens. AXS allows you to be a “citizen” of its world, SLP is the currency you earn by playing the game (which later converts to ETH and then dollars).
Axie earns revenue from marketplace fees and breeding fees (the latter increased greatly after moving from Ethereum blockchain to Ronin sidechain).
Their economic risk: over-breeding of Axies could dilute their value, choke supply and slow player demand.

From Platformer, by Casey Newton

The rumors are true, Facebook is changing its name. Why?

The company’s reputation has never fully recovered since the 2016 election scandal, with its political allies dropping off one by one.
The Facebook app is no longer the future of Facebook the company.
The new name is likely to exhibit Facebook’s expansion goals into the metaverse.

From The Diff, by Byrne Hobart

FedEx is betting on network effects within its market and making investments that will lead to better returns if its competitor USPS shrinks.
When the network effects of USPS unravel due to external reasons, FedEx can acquire a share, at gradually increasing margins.
Difficult road ahead:
- FedEx has to win over shareholders on investments for which payoff is uncertain
- USPS has to advocate to Congress for its survival as it increasingly offers a poor substitute delivery service.