The Untold Truth Of Whatsapp🔥| Dark Side of Whatsapp | Business Case Study

In year 2009, a man with name Brian Acton develops a mobile application with one of his friend Jan Kaum, Which is being used by more than 1 billion people worldwide. Name of that app is “WhatsApp”. In February 2014, Facebook acquired WhatsApp in 19 billion dollars. After that founder of WhatsApp, Brian Acton started running WhatsApp as a Facebook employee. But in 2017, suddenly a day leaves Facebook and his stakes of 850 million dollars as well. And quits Facebook at that time itself. After few days only, other founder of WhatsApp Jan Kaum quits Facebook as well. This thing arises a very huge question that what happened suddenly that both the founders of WhatsApp quitted it? .

And not only this much, after that they designed a new application who was rival of WhatsApp whose name is “Signal”. Till date, there's hardly anyone among us who had spend money to use WhatsApp. Now question arises that a free to use application with more than 1 billion users worldwide, how's it surviving till date? Do Facebook cash burn for WhatsApp? No there's nothing like that. There's a dark secretive side of WhatsApp which most of the people don't know. So this story starts in 2009, when Brian Acton, who is founder of WhatsApp applies for a job in Facebook. Obviously, he was rejected. After that, he starts WhatsApp with his friend Jan Koum who is ex-executive of Yahoo. Initially WhatsApp was a free to use application, in fact it is free to use today as well. .

So any application which is free to use in this world can earn money only by these three ways. Advertising, in app purchases & sale of data. In simple words, if you are not paying for the product then you are the product. Interestingly both the founders of WhatsApp were totally against these three ways of advertising, in app purchases & selling of data. Isn't this thing very confusing? That if it's like this then how the hell WhatsApp earn money? So WhatsApp was growing with a great speed in 2010 & more & more people started using it, There was only a single reason for this rapid growth of WhatsApp, “Network effect”. So look how it works. For an example, you downloaded WhatsApp today & you can't even use WhatsApp alone, .

So you told one of your classmates that you download WhatsApp as well so we can do conversation here for free. Your friend download WhatsApp as well, after that a common classmate of both of you want to talk to you, Then you suggest him/her as well that he/she downloads WhatsApp as well because we both are on WhatsApp. After that, as you are talking to these people on WhatsApp then you will also ask your friends & family and rest of the people That you guys come to WhatsApp as well Because I am talking to these people here so will talk to you guys as well on the same platform. And Network effect is created by this only. In very simple language, any single user bring other users to use a platform & when those users join they bring other users as well. WhatsApp's growth was increasing so rapidly by this network effect only but there was a great problem in front of WhatsApp. .

That problem was Money. Without any revenue, WhatsApp was only surviving on it's initial seed capital. And founders of WhatsApp use to hate ads strictly, that's the only reason they quitted their job at Yahoo, Because of excessive use of ads. They were against in app purchases as well & as privacy was their top priority so there's no question regarding selling of data. But WhatsApp needed money very badly as more people were joining it hence they needed great servers. Along with this they needed a great team to manage the app as well, And this is a point where entry of Sequoia Capital takes place in this game. Founders of WhatsApp were not taking funds because they didn't wanted interference of anyone in their company. .

But when Sequoia Capital came, They gave millions & millions of dollars to WhatsApp & told them alongside that we won't interfere a bit in the company. And after this happened, WhatsApp got a new business model. What is that business model? So look, No.1 – Get users, first get users. After that, No.2 – Get investors. Bring investors & raise funding. No.3 – Get more users from funding, bring more users by using those funds. And No.4 – Get more investments. Instead of earning from their users, WhatsApp focused on how they can make their application best, So that more & more people start using it. .

In fact, WhatsApp started to charge an annual fee of 1 $ in few countries. But 1 $ might be making hardly any revenue but this thing makes no difference, Because in this world of venture capitalism, you get funding easily if you have users & they see potential in your application. And this strategy worked as magic for WhatsApp as count of users of WhatsApp even crossed 1 billion till 2014. But now a very huge problem was standing front of them, which was the problem of over reliance. If investors didn't gave money? Then WhatsApp will be shut down in just few nights. And this is a point when there is entry of Facebook in this game. To solve this problem of money & over reliance, Google calls Brian & Jan in it's headquarters. After hearing this, the very next day Mark Zuckerberg reaches out Jan & Brian, .

And buys WhatsApp by giving them a offer of 19 billion dollars. Now question arises here that the company which was such loss making & may not witness profit ever, Why Facebook bought that company for 19 billion dollars then as well? Facebook bought Instagram for only 1 billion dollars, then why did they spend 19 billion dollars for WhatsApp? To understand why Facebook bought WhatsApp, you must need to understand Investor cycle. So in venture capital world, investments are done in three types of businesses. No.1 – Low scale, high profit. Scalability of business is low but profitability is high. No.2 – High scale, low profit. Scalability is high but not that high profitability as you cannot earn that much money from every user. No.3 – High scale, high profit. Scalability is high & profitability is high s well. .

In 2nd business investment, i.e, high scale but low profitability, most of the investors first invest good amount of money, And when their stake & valuation gets very strong then they sell it to company & exit from it. And in 3rd business investment, i.e, high scale & high profit, investors stay for very long terms. In 2nd & 3rd kind of business investments, risk to reward ratio is very high in them, i.e, your risk is high & rewards are high as well. For an example, like I invest in cryptocurrencies & I have only two ways to earn through it, No.1 – Either I sell them when their price rises, No.2 – I go to PlotX & place a short term trade. If I think that in next half hour or one hour, value of this cryptocurrency will go up or down Then I will place a trade according to it on PlotX. .

If this prediction of mine proves to be correct then I can earn returns upto 200% on my investment. Now to understand & practice this is very tough for everyone, That's why on signing up from the link in the description you will get a signup bonus of 5 $, i.e, your first trade will be placed for free. And those who have interest in sports, they can go to PlotX and predict on sports game as well & can earn money. By the way, right now a contest is running on PlotX as well where you can earn SWAY coins upto 1 lakh rupees. And link is being given in the description for rest of the information, you can go & check it out. And a very important thing, it's very risky to predict and put money on anything. So whenever you do trading then do it with the amount of money for which you are ready to lose. I also trade with the money which I am ready to lose, I know this will reduce your profit but will also reduce your loss. .

And that's why when venture capitalist do investment so they make sure that their 50% of investment amount/money Is always invested in 1st & 3rd category of business. And they predict & play with only 50% of money in 2nd category of business. Why? So that they people can also keep themselves in a safer side as you must take risk but only as much as you can bear. Facebook is one of the most powerful company of this world & there's only a single thing which makes them this much powerful, That thing is, “Surveillance Competency”. And very few people have any idea of ​​its power. Look, business model of Facebook works something like this. No.1 – Bring users as firstly Facebook bring more & more users on it's platform. .

No.2 – Collecting their data as after it Facebook collects the data of users. No.3 – Creating profiles as by using that data Facebook creates a very strong profile of every individual. No.4 – Customizing, i.e, according to every profile Facebook customize it's user interface & it's advertisements. And No.5 – Showing advertisements, As by creating & customizing your profile only, Facebook will show you advertisements in a very customized way, Whether it's on Instagram or on Facebook. Looking at this, 90% among you people might have guessed the business model of WhatsApp something like this, That very first WhatsApp collect your data after that it shares all of your data with Facebook, And then Facebook show you advertisement & earn money but this isn't real business model of WhatsApp. .

Facebook bought WhatsApp only due to a single thing & a single reason which was, “Attention control domination”. Now understand this thing very carefully. As you install WhatsApp in your phone, it asks access from you for your data. But anyone of you know about which data of yours is being accessed by WhatsApp. Real job of WhatsApp is to create a data pack of your behavior. So look, WhatsApp gets access to all these things of yours – Your phone number, your contact list, your name, your profile picture, your gallery, your audio notes, your IP address, Your mobile phone's IEMI number, your login activity, your location, what thing you purchased, your financial information, Your phone's details, i.e, which company's phone you have, which model of phone do you use, your IP address & your camera as well. .

WhatsApp gets access to all these things. In May 2017, European commission imposed fine on Facebook of 110 million dollars. This fine was imposed because Facebook mislead them at the time of WhatsApp's takeover. This fine was highest procedural infringement fine till date, But in reply to this Zuckerberg said that WhatsApp & Facebook cannot be interlinked technically ever. And hearing this thing from the mouth of Zuckerberg wasn't a new thing, Because Facebook is already very popular for privacy concern issues. Whether it's Cambridge Analytica Scandal or Mark Zuckerberg's Harvard days, At that time in a private message he said, .

That if anyone needs data of anyone in Harvard then come to me as I have data of everyone. I have 4000+ emails & apart from that I have name, address of people. I have everything. And someone asked him that how did you managed all these things? So he answered that, “People just trusted me and they gave me the data. They are fools.” So whenever something like his happens & Facebook is caught then they simply do a thing, they apologize. When Facebook bought WhatsApp then at that time founders of WhatsApp were promised, That Facebook won't do any interference at all in their company. But in 2017, when rules were changed And WhatsApp was forced to declare publicly that WhatsApp take data of people & what they do with it, .

Then at that time Brian Acton & Jan Koum experienced a huge shock. When all this happens in 2017 & when Brian Acton & Jan Koum gets to know That WhatsApp was sharing data with Facebook from years And after getting to know this Brian Acton & Jan Koum quits Facebook in 2017. Now many people might be thinking that bruh there's a thing called “end-to-end encryption” as well, Encrypt the messages & WhatsApp won't be able to take your data. Interestingly, you will be very sad to hear this that end-to-end encryption is a myth. And I am not saying this, it's being said by ex employees of Facebook & WhatsApp. So look, whenever you type any message then very first WhatsApp convert it into data codes. .

After that it reads & encrypts that data code. After that these encrypted data codes reach the receiver, i.e, to the person whom you are sending the message. After reaching there these data codes are decrypted and after decryption, message is visible to that person. So ultimately when you type a message, first WhatsApp reads it after converting it into data codes after that it's encrypted. That's why encryption is a myth. But now WhatsApp has launched many ways to earn money, like WhatsApp business. In many countries those who use WhatsApp business, WhatsApp charge a late reply fees if businesses don't reply to customers on time, charges a penalty. Apart from this, WhatsApp is going to introduce ads in status section in many countries. .

I know after knowing all these thing, only a single though you might be getting in your brains. That if it's like this then why do people trust so much on WhatsApp? So answer to this is, “They don't”. No one trust WhatsApp. If it's like this then why do people use WhatsApp? So there's mainly two reasons to this. No.1 – Network effect. Even if you want to use Signal today still you won't be able to because there's only a single reason to it, Because your friends aren't on Signal, that's why you people will prefer WhatsApp over Signal. .

Because your friends, family members & every other human with whom you are connected, al are only on WhatsApp. And No.2 – They don't care. If you have to choose between these two options then which one will you choose among, No.1 – Keep your privacy safe, No.2 – Stay connected with people. And you have only these two options in today's date & 99% people will choose 2nd option only. Facebook's formula is to “Keep control of people's attention” & that's why Facebook is creating Metaverse, Through which it will control lives of all of us. Now how can we get away from this thing? Well if you want to know this then watch the right side video of your screen. .