Despite Mixed Reviews About Potential Facebook Coin, Ari Paul Says Its Bullish As It Gets
Large Crypto Funds Bullish On Facebook Coin
Facebook has been one of the largest social media networks for well over a decade now. While the company did find itself in the center of several scandals over the years, as well as massive hacking attacks, it recently made a move that will undoubtedly have a huge impact on the crypto world.
The company finally decided to get involved with cryptocurrencies, and according to current rumors, Facebook Coin might not be that far away from its own launch. It is already known that Facebook is working on researching and developing a new blockchain, and a new coin is expected to follow and be used within WhatsApp.
As a result, the crypto space will gain massive exposure, potentially rivaling, or maybe even exceeding, the one it got during the bull run of 2017. While this is a popular opinion among crypto enthusiasts, it is also shared by the CIO and managing partner at Blocktower Capital, Ari Paul.
Paul stated that this might be the most bullish thing to ever happen to cryptocurrencies. The interest in crypto is spreading, and even financial institutions such as JP Morgan are getting involved. However, while JPM Coin is not a real cryptocurrency — and there is a large possibility that Facebook Coin will be equally as bad — it is still a massive move forward for the real crypto space.
Projects like these will bring both, education of crypto, as well as massive investments, which will likely proceed towards Bitcoin.
A Flawed Step Towards Crypto
When it comes to JP Morgan's announcement, it came in mid-February, stating that the bank will issue its own stablecoin. As many other stablecoins, it will be backed by the USD, with investors getting the coins by depositing a certain amount of funds within the bank. However, while a few years ago, many may have welcomed such an announcement, most within the crypto community have received it with mixed reactions. The coin seems to be limited to the bank only, and heavily centralized.
As such, it is as far from a cryptocurrency as it can be, and it will rather act as a digital version of fiat money than crypto. Meanwhile, the news of Facebook researching blockchain and ways of creating and using its own coin also received a lot of skepticism. However, considering the controversies and scandals that Facebook has gone through recently, this is hardly a surprising reaction.
Even with the community reacting in this way, not everyone thinks it is such a bad idea to have these coins out there. Scalar Capital's Linda Xie, for example, stated that both coins would ultimately be good for the crypto industry. Like Paul, she also argues that more education and more infrastructure will be a positive thing for the crypto space.
She went on to say that she is a huge fan of both new coins, as people will connect cryptos to large, trustworthy companies instead of hacking attacks and shady deals. As such, they are likely to become more open to learning about crypto and even researching the old coins.
JPM Coin And Facebook Coin Will Lead People To Crypto
Many others seem to share this opinion, such as Multicoin Capital managing partner, Kyle Samani. He also believes that this will be a very bullish thing for the crypto space in the long term. Sumani added that he has no knowledge regarding Facebook's exact plans on the coin, but he doubts that it will be a permissionless, open system. After all, Facebook's entire business is based on having absolute control over every aspect of their platform. It seems unlikely that they would change their methods and release software that they cannot control.
Because of this, Samani believes that there is no reason to fear that Facebook might swallow up the entire crypto market. In the long term, Facebook's project is unlikely to be successful. However, that is the good thing about it. The company will actually inspire consumers to open up to crypto and familiarize themselves with the trend, as well as blockchain technology. Coins like JPM Coin and Facebook Coin will serve as gateways for millions of people who will be willing to enter the crypto space.
Of course, there are reasons for concern, especially with all the incidents Facebook has had recently, The company has been accused of censorship regarding political views, and while the issues of this kind can be brushed off by blaming the algorithm, people will not take it lightly if something like that starts happening to their money. If such incidents do happen, they will likely start searching for an alternative, something that doesn't get shut down and manipulated. This will ultimately lead them to real cryptocurrencies.