Will Facebook Launch Its Own Cryptocurrency?

The cryptosphere was abuzz over the weekend as word broke out on Friday that Facebook was reportedly planning to create its own cryptocurrency. The social media giant is “very serious” about launching an in-app virtual coin, according to anonymous sources.

Facebook dives into blockchain

News of Facebook’s intention to develop its own cryptocurrency surfaced after the company announced that David Marcus, vice president of its Messenger app, would lead a new blockchain research group of about a dozen team members. Previously, Facebook only had one person devoted to studying blockchain technology.

Given Marcus’ background and involvement in cryptocurrency, it is not outside the realm of possibility that Facebook is considering its own virtual currency. An early Bitcoin investor and cryptocurrency enthusiast, Marcus holds a position on the board of Coinbase. Prior to joining Facebook, Marcus served as the president of PayPal.

David Marcus

In January, Facebook CEO Mark Zuckerberg said the company would begin studying cryptocurrencies and their potential for empowering individuals. However, when asked whether Facebook would be integrating Bitcoin payments back in February, Marcus answered that high fees and slow transaction speeds made crypto payments risky and problematic. So far, Facebook has released few details about its blockchain initiative, avoiding any mention of cryptocurrency altogether. In an internal company post, Zuckerberg remained ambiguous:

“Like many other companies Facebook is exploring ways to leverage the power of blockchain technology. This new small team will be exploring many different applications. We don’t have anything further to share.”

If Facebook does decide to launch a cryptocurrency, the social platform will most likely steer clear of conducting an initial coin offering, sources say.

In other news, Facebook shares have managed to bounce back to pre-scandal stock prices. Zuckerberg’s apologies and his testimonies in front of Congress coupled with Facebook’s shared positive earnings results for Q1 have helped it recover from March’s stock plunge. Facebook traded at approximately $185 per share before losing over $70 billion in market value following the data breach associated with political consulting firm Cambridge Analytica. Shares closed at $186.99 on Friday, rising 0.8%.

It will be interesting to see where Facebook takes blockchain, and what impact, if any, this initiative will have on the company in the months to come.

Rank Site Location +currency Buy
with…
Score
1 etoro London, UK

USD
derivatives

CFD
+ bank transf.
+ card
+ paypal
+ webmoney
9.85
2 coinbase San Fran, USA

USD EUR GBP
buy bitcoin credit card

+ bank transf.
9.80
3 iqoption Limassol, Cyprus

USD EUR
derivatives

CFD
+ bank transf.
+ card
9.75
4 localbitcoins local

all currencies
buy bitcoin with cash

+ paypal
+ bank transf.
9.55
5 cex London, UK

USD EUR GBP RUB
buy bitcoin credit card

+ bank transf.
+ Ethereum
9.50
6 changelly

cryptocurrency exchange
Prague, Czech Rep.

35+ crypto pairs
cryptocurrency
CRYPTO- CURRENCY

+ credit card
8.65
8 binance

cryptocurrency exchange
Shanghai, China

30+ crypto pairs
cryptocurrency
CRYPTO- CURRENCY
8.60
9 hitbtc

cryptocurrency exchange
Copenhagen, Denmark

25+ crypto pairs
cryptocurrency
CRYPTO- CURRENCY
8.30

Past performance is not an indication of future results. Also, leveraged products can carry a high degree of risk. eToro offers protective measures to manage risk effectively, but in rare occasions it is possible to lose more money than invested. This content is for information and educational purposes only and should not be considered investment advice nor portfolio management.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.