Venture capitalist and bitcoin’s biggest supporter Tim Draper is planning to meet with the social media giant Facebook Inc. to discuss investing in the Facebook’s cryptocurrency project.
Draper revealed to the sources, “I am interested to hear the story, we will see if it is a fit.”
Draper is not the only one who is meeting with the social media network as it seeks to raise as much as $1 billion for its cryptocurrency project. The initiative seeks to create a digital coin to be used within one of its apps. The news of fundraising was first reported by the reporter of New York Times. Venture capitalists, Hedge funds and other investors are likely to invest in the project, sources suggest.
According to the reports, Facebook has employed developers to create its own stablecoin, a digital coin whose value will be pegged to the U.S. dollar or other currencies to limit volatility. Users can transfer money on its WhatsApp messaging app. Reports suggest that the first remittances are mainly focused in India.
The social media giant is still far from launching the coin as it’s still developing how to safeguard the digital assets or regular currencies that would be held to safeguard the price of the stablecoin.
After Facebook hired PayPal president David Marcus to run its app in 2014, Facebook has been expected to make a move in financial services. In May 2018, Marcus became the head of the company’s blockchain initiatives.
Draper has always been a biggest supporter of bitcoin and he has been among the first venture capitalists in Silicon Valley to see the promising future of Bitcoin, other major digital currencies and blockchain. Over the past couple of years, he has bought up massive amount of Bitcoins at government auctions, and invested in key cryptocurrency-related companies such as Coinbase and Bancor.
Recently CoinMarketFeed reported, Facebook is allegedly seeking support from various venture capital [VC] firms to invest in its cryptocurrency project and to develop its digital stable coin. The information was shared by journalist who covers technology and finance for New York Times [NYT] Nathaniel Popper on his Twitter on April 8.
He cited information from sources familiar with the matter. According to sources the social media giant Facebook seeking investment from outside could keep the crypto project more focused and in line with crypto community’s decentralized ethos, Nathaniel Popper tweeted on his official Twitter handle.