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Facebook Could Rake in $19 Bln After Rolling Out Its Cryptocurrency: Barclays

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🤑🤑🤑Barclays’s Ross Sandler claims that the cryptocurrency will generate a new stream of revenue for the social media giant
Facebook Could Rake in $19 Bln After Rolling Out Its Cryptocurrency: Barclays
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While social media giant Facebook is acting coy about its plans to launch a cryptocurrency, Wall Street firm Barclays has already estimated that its forthcoming crypto project could turn out to be a $19 bln revenue opportunity. Barclays’s Ross Sandler also predicts that the successful rollout of the new currency will ‘change the story’ for the company’s shares.

Facebook’s crypto plans

As reported by U.Today, Facebook Coin is expected to be launched in the first half of 2019. Facebook is already sopping its dollar-based stablecoin to numerous cryptocurrency exchanges. However, the Mark Zuckerberg-led company, which is currently expanding its Blockchain team, has yet to confirm its crypto plans.

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A new revenue stream

Last year, Facebook was engulfed in a major scandal after it was revealed that Cambridge Analytica would collect the data of 50 mln users that without their permission. Facebook somehow managed to dodge a big bullet with this one – its shares rallied 30 percent in 2019. However, creating a new revenue stream is crucially important, and Facebook’s bet on crypto could be the right option.

A path to Facebook Coin

Facebook debuted its own virtual currency dubbed ‘Facebook credits’ back in 2010, but the initiative hit a snag due to interchange cost that took a toll on the company’s profitability. Now, the media giant, which also owns Instagram and WhatsApp, is going to revitalize the idea by introducing a cryptocurrency for micro-payments and domestic money transfers.

Plenty of challenges

With that being said, Facebook is still facing plenty of challenges. The company has tainted its reputation after the Cambridge Analytica disaster, and it currently has to win trust from the general public.

In the cryptocurrency community, the reception of Facebook’s upcoming project was mixed. While some think it could push crypto into the mainstream, others are dismissing the possibility that it could realistically compete with Bitcoin. Cryptographers even laughed at it.   

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Darryn Pollock

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

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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