Facebook Seeks Benefits of Launching Its Own Cryptocurrency
Tech news broadcast Cheddar senior reporter reveals plans of Facebook
On 11th May 2018, a senior reporter in tech news broadcast Cheddar revealed plans of social media giant Facebook to explore the benefits of launching its own cryptocurrency. According to the information received through anonymous sources, Alex Heath, the senior reporter of Cheddar mentioned that the company is having top management level discussions to launching its own Facebook cryptocurrency.
Heath stated the following;
Sources say that Facebook is specifically interested in creating its own digital token, which would allow its more than two billion users to facilitate transactions without government-backed currency. Facebook is also looking at other ways that it could use this core blockchain technology that underpins these popular cryptocurrencies like bitcoin and Ethereum.
Facebook market cap larger than cryptocurrencies
The company has a 533 billion USD market cap which is 140 billion USD bigger than the current digital currency market cap altogether. Earlier last week, the company revealed their newest team created focusing research on blockchain platform and its underlying technology. David Marcus is leading the team who is a Facebook executive and a member of the Coinbase director board. This will be the same team that will look into the cryptocurrency research as well.
The company is exploring possibilities of using blockchain technology to verify identities and secure the back-end infrastructure. This could even include the way Facebook manages its vast customer data.
Marcus is a former president at PayPal and an outspoken digital currency advocate. His expertise at PayPal a company working with digital transactions is a suitable pick to oversee the potential of Facebook in the crypto space.
The company might be seen in future involved in “strategic acquisitions” in the crypto industry on the path to building blockchain infrastructure. However, the discussions are at an earlier stage. This would mean, even if the firm decides to finally launch its own cryptocurrency it will be years from now on.
Telegram is another social media platform that raised over 1.7 billion USD through an initial coin offering (ICO) aimed to launch Telegram Open Network, a “third-generation blockchain”. Also, the Kik chat app created Kin, a blockchain token.
As Heath sees it, Facebook at the moment have no plans to launch an ICO. This is due to the billions of dollars the company already have at hand and also the selling of tokens would yield negative views onto the already injured reputation of the company. So, we might see other ways the coins will be given to its users, through a reward system or in some other way.