$1 Billion Sought for Facebook Crypto Project

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The New York Times reporter Nathaniel Popper has now said that social media behemoth Facebook will soon be seeking to raise up to USD 1 billion for its cryptocurrency project.

His series of Tweets yesterday shared several updates that say Popper’s undisclosed sources have informed that Facebook is going to be on the look out for venture capital (VC) firms in order to raise the 10-figure sum.

The tech journalist then goes on to speculate that a move to seek external investment could be a way to present Facebook’s crypto project as “more decentralized and less controlled”, given the expected backlash from crypto purists who see corporate crypto as a move away from the original principles of cryptocurrency.

His sources are also indicating that the company plans to peg its digital assets against a fiat basket in an attempt to create a stablecoin, which would protect it from the extreme volatility associated with cryptocurrency. He said:

“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.”

Although there has yet to be any official announcements from Facebook, there have been past media reports talking up a possible “Facebook Coin“, and the company has been seen to advertise vacancies for blockchain experts.

 

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