Facebook Is Likely Seeking A $1 Billion Outside Funding for Its Facebook Coin Project
It looks like Facebook is working more seriously towards introducing its cryptocurrency in the market this year. According to the latest report, the social media giant is seeking nearly $1 Billion in investments from outside sources through venture capital capitalist.
Technology reporter at The NewYork Times, Nathaniel Popper sullied the beans by tweeting out details coming from his insider sources. On Monday, April 8, Popper tweeted: “Update on Facebook's cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums -- as much as $1b”.
Furthermore, Popper goes to mention that the money will back Facebook’s cryptocurrency in the same way that the stablecoins are backed by physical dollars in the bank accounts.
“One person I spoke with said that Facebook is talking about using the money as collateral for its cryptocurrency. Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts,” said Popper.
Last month, in March 2019, a report stated that Facebook is currently in talks with several crypto exchanges to list its native crypto token ‘Facebook Coin’ ahead this year. Facebook plans to use it crypto tokens for instant payment settlements across its suite of other messaging applications including Facebook Messenger, WhatsApp, and Instagram.
Facebook CEO Mark Zuckerberg has spoken several times regarding the power of blockchain technology and the use of crypto tokens for cross-border payments.
Now, getting its plans straight ahead, Facebook might be launching its crypto token anytime during the first half of 2019. You also might be wondering why a multi-billion-dollar company like Facebook is looking for outside investments? By April 2018, Facebook already had $44 billion in cash reserves.
Popper’s sources suggested that the reason to have outside investors is Facebook wants to keep its cryptocurrency project as “decentralized and less controlled”. This is a bigger step by the social media giant to have a decentralized control over the user-data, especially when Facebook is facing several charges of data leak over the last year.
Over the last year, Facebook has stepped-up its decentralization drive and is significantly expanding its blockchain team for its future projects.