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,
“Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook.”
Popper further shared that the reported project is a stablecoin that would be secured to a basket of foreign currencies held in bank accounts.
The news of Facebook developing cryptocurrency stablecoin “Facebook Coin” surfaced last December in a report from the U.S. based media giant Bloomberg. According to the report from Bloomberg, the Facebook cryptocurrency would be utilized for money transfers made within the popular WhatsApp messenger service. Also, it would focus more on the Indian remittance market.
In February this year, sources reported that the cryptocurrency would be utilized across the Facebook Messenger App and other popular social media apps, WhatsApp and Instagram. This would enable to give it exposure to some 2.7 billion users every month.
According to the information from the anonymous sources, Facebook has appointed over 50 engineers to develop its cryptocurrency. In addition, reports suggest that Facebook has allegedly started shopping the “Facebook Coin” around to unnamed crypto exchanges.
Founding partner of Future Perfect Ventures Jalak Jobanputra said in regard to venture capital firms, in February crypto bear market had extremely affected Venture Capital firms. When he was asked if there is any trend of discounted venture evaluations across the cryptocurrency space.
Jobanputra revealed that “given how much the volumes have decreased in the last year, I wouldn’t be surprised if we are seeing valuations come down on the secondary markets for some of these companies.”