Since Facebook announced the launching of its crypto-related venture, the social media powerhouse has enjoyed recognition like never seen in the past year. Almost as old as the emerging technology the media outlet saw its glorious days brought to an abrupt pause. Following the contemporary privacy scandals that left the company rambling in uncertainty.
The Mark Zuckerberg spearheaded company debuted in 2010, has since grown to become the biggest social platform. With an operational revenue of $30.7 billion USD as well as a free cash flow of $15.8 billion USD over the span of a 12-month period last year. Despite these regulatory restrictions the company still has room for future growth.
Mark Mahaney and Zachary Schwartzman of RBC Capital Markets proposed to the press on Thursday in an interview with CNBC saying;
“We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams,”
Barely on its heels towards monetizing their social messaging platforms – Instagram, WhatsApp and Facebook Messenger, with Globalcoin. The company has the potentials to amass an unprecedented growth. As it foresees an ample opportunities to reach out the 1.7 billion adults around the world who excludes themselves from the traditional financial system.
Past Regulatory Scuffles.
Facebook is not the only Fortune 500 company to undergo such regulatory fracas. In fact, leading fintech companies Microsoft (MSFT) and Google’s Alphabet (GOOG, GOOGL) have both been subject to such treatments in the past.
While Microsoft faced an anti-trust lawsuit as a result of its windows monopoly on the operating systems sphere in the late 1990s. Alphabet’s was a case of over a decade old scrutiny by the FTC in 2013. However both firms seems to be trading well above most of their pairs in the stock market.
According to Macrotrends, as at Friday, the 14th of June 2019, Microsoft MSFT was trading at $132.45 from its $22.59 price in 1998. While Google’s Alphabet stocks GOOG & GOOGL were both trading at about $1,085 in juxtaposition to $443 price in 2013.
Both these companies were estimated to garner an excess of over 2X their stock price from the moment of these regulatory scuffles to date and Facebook is not going to be an exception.
Is Blockchain the Answer?
The year old crypto project is scheduled to be officially launched tomorrow. The Social media mogul is to partner with the global currency and financial infrastructure blockchain platform – Libra to see to the integration of the cryptocurrency into Facebook.
The Libra ecosystem is one that ships in with a blockchain solution as well as an asset reserve repository. Embedding the Libra network into the Facebook core would provide the social platform with a cryptocurrency – Globalcoin, that is stable, secure, fungible, generally accepted along with low inflation tendencies.
Latterly, the FTC investigation has dazed a huge blow on Facebook’s stock price. And although blockchain might not seem to be the way out on a short term basis. But on the grounds of a long term investment strategy, buying into the stocks of Facebook now would guarantee a bullish investment opportunity for traders.
Contrary to claims by Facebook, the social media outlet is believed to be going into partnership with a host of other fintech and payment processing companies. These technology, digital assets, and retail companies would collectively serve as a governing body for Facebook’s crypto-coin. Yet neither Facebook nor the member companies of the consortium, called the Libra Association would weild autonomous control over the coin.
This includes companies each expected to remit a sum of $10 million as a closure for the partnership includes; Facebook, Andreessen Horowitz, Creative Destruction Lab, Thrive Capital, Ribbit Capital, Union Square Ventures, Coinbase, Xapo, Anchorage, BisonTrails, Calibra, iliad, Vodafone, Farfetch, eBay, Mercado Libre, Women’s World Banking, Kiva, Mercy Corps, Uber, Lyft, Spotify, Booking Holdings, Mastercard, PayU, Pay Pal, Stripe and Visa.
However a detailed media publication sent to top crypto-blogging platforms proves otherwise. Citing that Facebook has highlighted the shortcomings of conventional blockchain solutions. Hence the partnership with the Libra Network to ensure a much more regulation-complaint and collaborative blockchain ecosystem.
Globalcoin could become the most used crypto currency ’stablecoin’ as it would be backed by a number of global first currencies. Bringing about mainstream adoption of cryptos on the long run. Even though a lot of critics from the crypto community refers to Globalcoin as merely a fiat currency disguised as a cryptocurrency, such as crypto enthusiasts Charlie Shrem who noted this saying;
”I’m just gonna say it.
I think the ‘FacebookCoin’ is an attempt by big tech, banks and credit card companies to lure people away from Bitcoin into “better, easier, crypto”, which is nothing more than a fiat coin being masqueraded as crypto.
Millions will be fooled.”
Others in the space are bullish about Facebook’s involvement with crypto as it is believed that the social media giant could take the crypto sphere to the next level.
In a tweet by another crypto proponent, Ray The Block; who goes on to propose an anticipated partnership agreement that would enable the coin to attract global endorsement.
Possibly $FXC Flexacoin because Flexa protocol enable crypto payments into fiat to retailers: 1. Back by Gemini (and FB and Gemini are in contact). 2. Most A grade team 3. Already available in 30k US stores 4. No ICO, registered in NYC (toughest crypto laws), US team…
— Ray The Block (@Ray94609549) June 17, 2019