As per the New York Times, Social media and tech giant Facebook is apparently searching for venture capitalist firms to invest in its “crypto-initiative”. Facebook has been a making series of interesting moves lately in regards to blockchain technology, therefore, this comes as no surprise.
As confirmed by Nathaniel Popper from the New York Times, the platform is looking for funds as high as $1 billion to enact the ambitious project and create its own stablecoin. When completed, the crypto will be operational under facebook owned messaging platform WhatsApp and will rely on various foreign currencies as securities.
Update on Facebook's cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums — as much as $1b.
— Nathaniel Popper (@nathanielpopper) April 8, 2019
Considering the fact that Facebook is one of the richest companies on the first of the Earth, this might come as a shocker for many. Why would this giant of modern times seek outside investments? In terms of cash alone, Facebook is currently seating on an enormous sum of $10 billion.
An interesting approach to this question came from New York Times reporter Nathanial Popper. He explained that since one of the important concepts of the blockchain is decentralization, it’s only logical for the company to look for outside investors, as it will render the initiative “as more decentralized and less control by Facebook”
Despite this valid speculation, a source close to the tech giant revealed that Facebook is looking for outside funds simply to be used as collateral for its Stablecoin. Additionally, the crypto being supported by foreign currencies will render it less volatile, therefore less influenceable by the global crypto market.
For quite some times now, Facebook has been working on forming a blockchain team to address the company’s blockchain ambitions. It has been reported that at least thirty people have joined Facebook’s blockchain division, featuring the head of Messenger and Paypal ex-president, David Marcus as the Director of Engineering.
Finally, this is exciting news for the global crypto community as through this project Facebook could be a driving force behind crypto mass adoption, all thanks to the company and its platforms sizeable user bases