Venture Capitalist Tim Draper To Meet With Facebook Over Facebook Coin And Blockchain Fund
Venture Capitalist Tim Draper To Meet With Facebook Over Facebook Coin
Tim Draper, a famous venture capitalist with a heavy interest in cryptocurrencies, has recently affirmed that he is about to meet with Facebook Inc. in order to discuss the plans of the company involving its own cryptocurrency, the so-called Facebook Coin. According to the venture capitalist, he will listen to Facebook and “see if it is a fit”.
Draper was one of the first venture capitalists in Wall Street to see the value of Bitcoin. He was interested in cryptos for a long time and has profited a lot from when the prices started to go up in 2017.
This investor may be very interested in being a part of Facebook Coin, but he is far from alone. Other investors have already shown some interest in Facebook Coin as well. In fact, the New York Times has reported that the company is looking for $1 billion USD in venture capital in order to jumpstart this new initiative.
Some unnamed venture capitalist, hedge funds and other wealthy people are reported to be looking forward to getting a piece of Facebook Coin before it launches. It makes sense. If cryptos were very successful (before the bear market) and have so much potential, imagine if one of the largest companies in the world decides to go for it.
Facebook is set to create a stablecoin. In case you do not know, most cryptocurrencies have very volatile prices, which is good for speculation and even for the storage of the value when you consider that Bitcoin’s price is generally always higher than it was five years ago, but it is not good for some people.
For instance, the volatility makes Bitcoin not as good for transactions as it could be, so many merchants do not want to accept it. Facebook’s solution was to create a coin that will have its price pegged to the United States Dollar (or, according to some reports, a basket of currencies).
Using Facebook Coin, the users of the largest social media network in the whole world will be able to use WhatsApp to transfer money.
Most reports affirm that the social media company is not even close to releasing the coin yet, so we may not see the launch in 2019 (but almost certainly 2020, if not this year). The main problems that the company is working out right now are related to safeguarding digital assets and how to protect the value of the stablecoin, inside sources have told Bloomberg.
Since David Marcus, the former president of PayPal, was hired by the company, many people are expecting Facebook to enter the payments industry and now it looks more near and real than it ever was before.