Zuckerberg seeking ‘as much as $1 billion’ for Facebook coin
Nathaniel Popper, author of Digital Gold, suggests that the social network could be seeking to ‘back’ Facebook coin with USD collateral.
Facebook’s entry into the blockchain and cryptocurrency space has prompted keen interest and speculation within the crypto community, though few details have been forthcoming. Now, Nathaniel Popper – author of Digital Gold and a NY Times writer – has indicated the possibility that it might be a stablecoin project funded by external investment. In a series of tweets, Popper reveals details from a string of sources:
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.
Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook.
One person I spoke with said that Facebook is talking about using the money as collateral for its cryptocurrency. Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts.
A stablecoin backed by a basket of international currencies and made available to Facebook’s 2.3 billion monthly active users would be, by far, the largest use case for crypto to date. Popper’s comments are also interesting in the light of Facebook’s overall resources. The company has almost $100 billion in total assets, meaning there is no financial reason to raise money from third parties. As Popper states, this may be intended to show Facebook has less control over the crypto – presenting a more decentralised vision for the currency.
If this is true, it would be an interesting development. Mark Zuckerberg, Facebook’s CEO, recently appeared to adopt a cypherpunk-style vision in his endorsement of strong encryption and robust privacy, in response to criticism of the way the social network had previously handled user data.