The race of cryptocurrencies has now entangled the world’s largest messaging and internet monopolies. Telegram, one of the most successful messaging apps, has already started with their successful ICO (initial coin offering) that resulted in millions of dollars. Facebook is eager to catch up and is discussing the release of their own currency this year.
Will Facebook’s Cryptocurrency Be Popular?
Nobody is expecting Facebook to team up or adopt an existing crypto platform. In fact, the social media giant has already expanded their blockchain division with its acquisition of Chainspace.
The New York Times has reported that Facebook is developing a crypto coin for WhatsApp users to receive and send payments. The report suggested that the development is so far along that Facebook has already discussed the possibility of introducing the new coin to the crypto market. Many believe that WhatsApp will be the testing ground for a larger crypto coin that will be integrated into the Facebook platform.
This possibility raises many questions since Facebook has been in the midst of privacy issues. The platform has received a lot of negative press surrounding their inability to handle information properly. There are also concerns being raised about the security of users’ personal information. From data manipulation and fake news to censorship and security breaches, Facebook has been under an investigatorial microscope in recent years.
Facebook isn’t alone in their quest for crypto influence. Telgram recently raised $850 million in their second round of funding. Rumors suggest that the messaging app will be releasing the Telegram Open Network later this year.
Facebook’s Popularity is an Upper Hand
Despite being further behind in the development of their coin, Facebook still has a massive advantage to these other companies. There are already over a billion users on the Facebook platform. This will ensure that Facebook’s crypto market instantly gets millions of users, if not more.
Facebook has intentionally kept the workings of their crypto market in secrecy. Reports suggest that over 50 engineers are currently on the project. In fact, some workers report that the blockchain technicians have different keys than other workers.
Facebook will most likely keep their blockchain private in order to maintain control over their new crypto. This will be a centralized currency and completely managed by Facebook. This would seem to be a logical assertion given the history of how Facebook manages control over users’ information. This control allows Facebook to make money from this information. Many people assume the social media giant will treat their new crypto the same way.
