Meta, under CEO Mark Zuckerberg, is reportedly developing a prediction market platform internally dubbed 'Arena.' The platform would allow users to make predictions on events using points rather than real cash, leveraging Meta's billions of users across Facebook, Instagram, and other social networks to drive mainstream adoption. This marks another crypto-adjacent bet for Meta, following its previous attempts with stablecoins like Libra (later Diem) and the metaverse, which saw significant investments but faced regulatory pushback and eventual scaling back. The initiative comes amid growing popularity of prediction markets like Polymarket and Kalshi, and broader interest from financial firms and tech platforms. However, lawmakers have raised concerns about consumer protection in prediction markets, calling for regulations. Meta's history with crypto-adjacent projects includes shelving the Libra stablecoin after intense criticism and pivoting away from Horizon Worlds. Still, the company continues to support crypto in other ways, such as allowing creators to receive USDC stablecoin payments. The arena project is described as experimental, reflecting Meta's ongoing exploration of emerging technologies despite past setbacks.

Key facts

• Meta is developing a prediction market platform internally called Arena.
• Users will make predictions using points instead of real money.
• Meta aims to leverage its billions of users for mainstream adoption.
• Previous crypto bets include stablecoins (Libra/Diem) and the metaverse.
• Lawmakers call for regulation of prediction markets to protect consumers.