Facebook has been making plans to join the race in blockchain and crypto trading. Not minding the fluctuations that have been on the Bitcoin price, the company has been making progress in its plan. We believe that Facebook has gathered the 50 plus full-time staff it was targeting. By this time according to their projections, the firm should have hot shots like the popular PayPal Mafia-David Marcus. They may have also acquired key players such as major Instagram executives and top talents in the blockchain technology worldwide. The firm was also targeting some important personnel from relevant industry start-ups.
Although Facebook has been quiet about this new interest in the industry, the company is very serious in its goal. However, it seems as if the progress is not as fast as people expect. Well, we believe that the reason as rumor has it is that the firm needs huge financing to push forward. This is why Tim Draper’s interest in the venture is big news.
Facebook Blockchain Venture Needs Huge Funding
Tim Draper has revealed his plans about meeting the Facebook team to Bloomberg News. Tim doesn’t make any attempt to hide his bias about Bitcoin and other similar techs. The venture capitalist based in Silicon Valley, became very popular when he bought Bitcoin to the tune of $18 million. During the auction, Draper explained that he wants to see if Bitcoin will be worthy of being amongst his portfolio. However, in his communication with Bloomberg news, he didn’t disclose the sum he is going to invest in the venture. However, we can safely say that the venture capitalist will be investing a huge sum. After all, he owns a lot of digital assets.
About Facebook Crypto Venture
According to the New York Times, the social media giant will be releasing its coin before the first half of 2019 elapses. This was according to what an insider revealed to them about Facebook’s discussions with unnamed crypto exchanges. We assume that since the firm is already looking for listing partners, the crypto project will hit the industry. However, since it’s only an assumption, we are not sure of when Facebook will launch the project.
One thing we are sure of this moment is that the blockchain team is sourcing for funds to complete the project. According to Nathaniel Popper who reports for the New York Times, Facebook is looking for $1 billion from venture capitalists. However, we can’t understand why the firm is not funding this project. Facebook is a very valuable company which we know so; speculations are going on about their external fund sourcing. Who knows, maybe even the owner of the firm is yet to embrace the idea.
FBCoin May Increase The Firm’s Value
Ross Sandler, a Barclays’ analyst, has explained that the social media giant may experience an increase in its revenue. According to him, launching the FBCoin will result in a gain of $19 billion for Facebook. In the worst case scenario, Ross estimates that the company may still make up to $3billion.
Ross’s Analysis implies that this digital asset will serve as another stream of income for Facebook. So, we are still wondering why Facebook is not funding the project since it has positive benefits.