Facebook Seeking $1 Billion in VC Funding for Crypto Project

By Tripti Rai
2. min read
Last update on: July 16, 2020

The rumors of a material called Facebook Coin started coming on the surface in December when Bloomberg reported that a token is being planned by the company to be brought into existence for making money transfers on WhatsApp messenger.

While not much attention was given to the Bloomberg report then, the rumor got air again in February through NYT.

NYT reported that the coin would not just be brought into use in WhatsApp Messenger but also Facebook Messenger application and Instagram as well – amove that will bring the Facebook Coin in front of 2.7 billion users every month. NYT backed the news through some unnamed sources who said that Facebook has employed over 50 plus engineers to create its own cryptocurrency.

Although Facebook has been very secretive about what all its Blockchain plans are for development purposes – with the Blockchain team been given a separate office with different key-card access, so that the other Facebook employees cannot get in – The NYT reporter, Nathaniel Popper tweeted yesterday that his sources have revealed that Facebook will soon be seeking $1 Billion VC funding to back the crypto project.

Now for a brand like Facebook which already has A LOT of funds, the reason that it is taking the VC route to fund the project instead of funding it in-house is also something to be thought about.

According to Popper, the reason behind this is the fact that Facebook from day one want it to be a decentralized project and thus the social media giant doesn’t want to give an impression that because it is funded in-house, it would be a centralized project.

So, What is it About this Crypto Coin?

Known as FaceCoin, the coin is not the first time Facebook has made an appearance in Virtual currencies. Remember Facebook Credits and Facebook Gifts? The two Facebook virtual offerings that soon saw a demise in a matter of 2 months?

Well, apparently, FaceCoin is different. It is not just backed by Blockchain – a technology that is poised to change the image of Facebook as a brand that does not focus on security, it is also a Stablecoin.

Facebook intends to monetize the concept of Stablecoin to the fullest with FaceCoins. To be used primarily for peer to peer payment and money transfer, Facebook is hoping that the coins will be a game changer in the world of remittances, a hot industry that cryptocurrency inclusion is set out to decentralize and simplify.  

What we can forecast is a time where Blockchain will find a place in the expansion plans of both modern and traditional companies, with example been set by Facebook’s crypto coin and Mastercard’s Multi Blockchain.

And specific to Facebook’s stable coin endeavor, we believe that the social media giant will only become a trendsetter in the P2P remittance industry.

Tripti Rai
Tripti Rai
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