According to Nathaniel Popper-a reporter from the New York Times, Facebook is looking for Venture Capital companies to invest in its proposed Cryptocurrency project. The firm wants to raise $1 billion and offer investors a stake in a project that could be worth billions of dollars in the long run.
Facebook Is Set To Offer A Stablecoin
The proposed Cryptocurrency is modeled as a Stablecoin. Stablecoins are very popular as they allow holders to enjoy the full benefits of both fiat money by being as stable as fiat as well as the advantages of Digital Tokens that include decentralization, privacy, security, peer-to-peer transactions, etc.
The Facebook Stablecoin is set to be deployed on WhatsApp before being rolled out on Instagram and Messenger.
The fiat currencies that will be used to back up the coin comprise of a basket of foreign currencies to take into account the international nature of the world’s leading social media platform.
Facebook Is Also Developing A Blockchain Division
To successfully deploy a Stablecoin, Facebook is developing a Blockchain platform that will be supporting the use of the Cryptocurrency. The platform is expected to have conventional DLT features such as immutability of transactions, peer-to-peer payment, privacy, security, immutability, etc.
Although little is known about the Blockchain platform development process as Mark Zuckerberg is playing his cards close to his chest, there are off-the-record reports that show that there are at least 30 engineers working on the project. David Marcus, the former President of PayPal and ex-head of Messenger is the Director of the Blockchain engineering unit.
The Fundraising Initiative
Nathaniel Popper from the New York Times posted a thread of tweets on his timeline on Monday that sheds light on the fundraising initiative. The reporter’s sources are from the Facebook blockchain project and the information is highly likely to be factual.
Under the Twitter identity of Nathaniel Popper (@nathanielpopper), he wrote that Facebook is onboarding Venture Capital Firms to invest in its Cryptocurrency project. “They are targeting big sums – as much as $1b”, he wrote.
Facebook Has The Capital To Get The Project Off The Ground
Despite the call for VC firms to invest in the project, the company already has committed $10 billion in cash and other equivalents of cash. Since the project has seemingly enough capital to fund the initiative, Popper speculates that Facebook is trying to present the Cryptocurrency project as “less controlled by Facebook and more decentralized.”
The participation of VC investors is also set to collateralize the Stablecoin and hedge it against non-volatility risks such as lack of support from influential firms and personalities.
Meanwhile, Facebook Is In Turbulent Times
The recent Christchurch terror attack and the fact that the terrorist broadcasted his acts on Facebook live has brought sharp criticism on the company for failing to bring down the broadcast for minutes.
However, Mark Zuckerberg has vehemently defended the platform as a “good technology being misused by bad actors.” Perhaps, the Facebook Coin could offer a life-changing solution that will give the world a new and clean perspective of the leading social media platform in the world.