Facebook Seeking Up To $1 Billion To Use As Collateral For Its Stablecoin
According to a tweet from Nathaniel Popper, a journalist at The New York Times, Facebook is seeking up to $1 billion in VC funding, to use as collateral for its soon-to-be-launched stablecoin. Here's a screenshot of the tweet:
Here' s the link to the original thread.
Main takeaways from the tweet:
- this is just a singular report, not confirmed (nor dismissed) by Facebook or a VC
- the total amount will be $1 billion, which is not much, knowing that cash reserves of Facebook last year were estimated at $44 billion
- attracting more external investors into the stablecoin collateral pool will help Facebook project an image of decentralization around this project
My 2 cents:
- Facebook will launch its stablecoin in the first half of the year - which means somewhere in the next two months and a half
- if the asset will be listed on major exchanges, it will create a massive suction effect, drawing more crypto holders to exchange their traditional crypto assets for FB stablecoin's, in order to make remittances or transfers
- the KYC / AML required by FB will be massive and I expect a few hiccups along the way until FB gets it right (which means they will know about you way more than you'd like them to)
I'm moderately positive towards this new development.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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no way! lol
first they sell it and now we pay it?...
It will be interesting to see if they airdrop it and how.
Why? Why would anyone trust them with a "stable coin"? They are always lying to the public and compromising user information and credentials. Always censoring and socially engineering. Now they're begging for regulation. Facebook and their shitcoin can get stuffed.
It's just the big numbers theory: even if less than 1% will trust them, that will be 19 million people (out of the 1.9 billion they have, according to my latest numbers). That's the size of a country like Romania, for instance.
The sheer force of this amount of people starting to trade even infinitesimal amounts of crypto would create a "suction effect".
Or at least that's what I believe, anyway. Time will tell.
Who cares?! They cannot be trusted. Do you think they’ll really let you control your keys? Do you think they’ll really allow for privacy? Crypto is suppose to remove trust because of people like Zuck and dishonest institutions like Facebook and / or banks. Now, here we are, debating the merits of Facebook potentially dominating that technology. They are poison. They censor and socially engineer. They’ll do that with crypto. If Facebook dominates crypto they could dominate cryptographic banking. Step out of line and zap, there goes your livelihood. Sorry, they have demonstrated that they are bad actors and I think this will corrupt the ecosystem, not help it.
Not a single word I won't agree with in your comment above.
I'm just saying something different: more people will use crypto because of this, and that could be a potentially good thing. I'm not saying this would make Facebook better. As a matter of fact, I think this has quite a relevant potential to backfire for them.
Fair enough. I guess I feel protective over the crypto space. Been in it since 2011 and have grown to sincerely dislike Facebook and admire the work the “good” engineers are creating with crypto. It has the potential to change the world and preserve liberty. Many of my friends can’t imagine a world without Facebook - as though it IS the Internet - and I fear that sentiment will get wrapped into crypto. That without Facebook, crypto will collapse. The world will be in chaos. The dark ages will be upon us! Blah, blah. It just brings out my passion. My ire wasn’t directed at you.
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I know exactly what you mean. But that's that. You can only acknowledge reality and navigate accordingly.
The sad truth is the vast majority of people don't really want their own keys, if you know what I mean. They're better off drifting around.
In time, I learned to dissociate, accept their way of life, and move on with my own. Which is, obviously, that I do want my own keys.
Oh $1 billion!! Is that not much and how are they going to get that
This will be interesting to see how this stablecoin will evolved and stand out in the crypto space @dragosroua
Looks like Facebook is growing rapidly ...
Bullish for Bitcoin.
Until it happens before I can be sure. 😀
Is 1billion enough to make a coin stable?
Big news for facebook users, especially for the diaspora that send money back to their homeland.