Facebook Announces Blockchain Team - No, It Doesn't Mean A Facebook Token or ICO
A positive 24 hours with the global cryptocurrency market cap rising by $18 billion to $438 billion – Bitcoin and Ethereum both made gains in the process, Bitcoin up $260 to $9360, Ethereum rising $40 to $760.
Speculation is rife that a Facebook cryptocurrency is on the cards after an announcement of a dedicated team being created by the social media giant. Former lead for Messenger, David Marcus (ex Coinbase and PayPal) will be heading the project according to a post made stating the intent to “explore how to best leverage Blockchain across Facebook, starting from scratch”. Whilst some news outlets and commentators are reporting it for what it is, as usual we can rely on the mainstream press to add their 2 cents worth to garner more eyeballs. UK based newspaper the Independent running the headline “Is Facebook about to launch its own cryptocurrency?” – Spoiler alert – No. Facebook is unlikely to launch a cryptocurrency anytime soon. Why? For a start they don’t need to, and even if they rolled an ICO out next month, the ongoing saga surrounding the Cambridge Analytica data scandal would no doubt raise significant regulatory questions from so many angles, an ICO right now would be more trouble than it’s worth.
As the announcement states – they are “looking at how to best leverage blockchain across Facebook” – nowhere is there any mention of creating a currency. The value in implementing blockchain solutions to manage data and data processes is very likely worth far more money to Facebook with respect to reducing overhead costs than any initial coin offering they could attempt under the current circumstances. Just because a company expresses intent to adopt blockchain into their business it does not automatically mean an ICO is going to happen. Aside from that, imagine the regulatory nightmare for a listed company running a token sale? How would they justify funds being raised from a token sale to existing shareholders?
Created: Thursday, May 10, 2018
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