Facebook Acquiring a Blockchain Startup Is Big News for Cryptocurrency Adoption — Here’s Why

  • Darryn Pollock
    🤷 Opinions

    Facebook once seemed very anti-cryptocurrency a while back, but acquiring Chainspace seems to suggest they are changing their mind.

Facebook Acquiring a Blockchain Startup Is Big News for Cryptocurrency Adoption — Here’s Why
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A report doing the rounds has suggested that the social media giant that is Facebook is getting more and more invested into the cryptocurrency and startup space with the acquisition of a small blockchain startup called Chainspace.

This may be small, both in terms of the size of the start up and the effect on the social media company, but it is a big step for the adoption of cryptocurrency and blockchain as it shows that major tech companies are actively getting involved in the space.

Facebook once banned the advertising of anything related to cryptocurrencies, but it has since reneged on that stance. In fact, Mark Zuckerberg, the well-known head of the company, has even insisted that he wanted to learn more about cryptocurrencies and blockchain.

Now, Facebook is putting its money where its mouth is by hiring the team behind Chainspace, which was founded by researchers from University College London.

Building their blockchain business

Facebook’s acquisition of Chainspace’s team, a move known in Silicon Valley as an acqui-hire, is the clearest sign yet of Facebook’s ambition to be a big player in the nascent blockchain industry.

Facebook has set up an entire group to deal with blockchain growth within the company, putting David Marcus, a Facebook executive and former PayPal president, at the head of its blockchain enterprise group.

So, Facebook has done a bit of a complete turn on its interest in blockchain, but the acquisition of Chainspace also points towards where it sees value in the distributed ledger technology.

Chainspace’s white paper explained that the team wanted to build a “distributed ledger platform for high-integrity and transparent processing of transactions within a decentralized system.” This essentially means they were trying to make transactions on the blockchain quicker and more functional in terms of a payment system.

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Facebook transactions?

This direction into blockchain transactions with cryptocurrencies could be a huge boost for Facebook. The possibility of, for example, a native Facebook blockchain token on the social media platform would allow for them to monetize a lot of aspects upon their platform.

It could indeed transform the face of social media, which has predominantly been about acquiring user data, and change it to receiving cryptocurrency as payment. This is especially prevalent with the increased focus on the value of users data in the wake of the Facebook-led data hack through Cambridge Analytica.

Already in the works

It has actually been reported that Facebook is interested in forming its own cryptocurrency, a stable-coin type currency that would operate in the messaging app WhatsApp, also owned by Facebook.

In terms of fueling adoption, the use of cryptocurrency and blockchain on two hugely popular apps, such as Facebook and Whatsapp, would see millions of people enter the sector and thus legitimize it far more.

More so, the value and price of the cryptocurrency would surely soar should this form of adoption come to be, as it would open the door to people not only on Facebook’s potential native token, but the entire cryptocurrency market, causing a huge demand rush.

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XRP Price Surging in Bullish Trend: Did Forbes 50 List Boost Ripple to Be Taken Seriously?

  • Jack Thomas
    🤷 Opinions

    XRP is seeing some good gains, but could it be because Forbes has listed it among other major billion dollar companies in blockchain?

XRP Price Surging in Bullish Trend: Did Forbes 50 List Boost Ripple to Be Taken Seriously?
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Ripple, and its XRP token, have always had a hard time being taken seriously by the Bitcoin maximalists and other ‘true’ crypto aficionados. The company has been focused on partnering with banks, which has been for a long time the scourge of the crypto market.

However, there has been a change in the sentiment around cryptocurrency and blockchain, with media houses like Forbes calling 2019 the year of enterprise blockchain, and one of rebuilding after the speculative boom and bust in 2017/2018.

Forbes has now produced a prestigious list of 50 enterprise business valued over $1 billion that are doing good things with blockchain and crypto, and Ripple is one of the few startups that are on the list. Ripple finds itself in the company of businesses like Microsoft, IBM, BP, Amazon and other multinational conglomerates.

A reputation boost?

So, while XRP and Ripple have been mostly viewed with suspicion within the cryptocurrency community, it could be that their appearance to the mainstream through the lense of Forbes is a lot better and brighter.

The blockchain list by Forbes is intended to inform about how much enterprise use of blockchain is actually going on from major companies, and some companies many would never have thought were involved in the technology.

There is no doubt that it is a boost for the technology underpinning cryptocurrency, but it would seem that even the XRP token is receiving a boost from this unearthing of institutionalised interest.

Price prediction?

This legitimizing boost has been reflected in XRP’s increase in value of over six percent, but looking ahead, it appears as though there is chance for a bigger boom.

This upwards move firmly established XRP’s support level around $0.32, so one analyst believes that it may continue surging towards $0.48 in the near-future.

Ryan W, a popular cryptocurrency analyst, spoke about this possibility in a recent tweet, noting that XRP does face resistance levels at $0.38, $0.44, and $0.50, but also explaining that he expects the crypto to garner enough upwards momentum to break above at least two of these resistance levels with a price target set at $0.48.

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