By HVY Journalists: Facebook is making a blatant attempt at deception with their stablecoin, and only fools are going to take the bait.
On June 5 news broke that Facebook, the social media goliath with over 2 billion users, would be officially announcing its worst kept secret to date: Libra. Tucked in the otherwise straightforward update was a report that the company was shopping out network control in an attempt to promote decentralization.
No Way Libra Will Be Decentralized
The crypto community was quick to respond, trashing Facebook for its poorly veiled attempt at winning support from the industry.
According to an update by TechCrunch, Facebook is looking to create an independent foundation to oversee their coin. However, this involves shopping out governance–to the tune of $10 million–for companies who wish to operate a node.
While there will be plenty of suitors for the financial incentive and reputation involved in operating a Facebook coin node, the social media platform is ultimately in control of the distribution. TRON and EOS have both attempted to implement a similar form of dissemination, through super representatives and block producers, respectively. However, both cryptos have come under for their incomplete decentralization, a feature Facebook is sure to push the envelope on.
Facebook Does Not Care About Your Bitcoin
Facebook will attempt to give Libra (or whatever they decide to call their coin) the veneer of decentralization, but ultimately the move is self-serving. Per the TechCrunch report, dispensing governance for Libra allows Facebook to avoid the stiff regulations involved in holding too much control over a global currency.
Either way, a $480 billion company with shareholders to appease is not about to allow the uncertainty of decentralization impact their massive undertaking in digital currencies. What happens to libra ultimately effects FB stock price, a point CEO Mark Zuckerberg is keenly aware of.
Facebook does not need the support of the crypto community for Libra to be a success, and they don’t care about decentralization. Let’s not forget barely a year ago the company instigated a crypto ban that tanked bitcoin’s valuation.
Not Even FB Shareholders Believe in Libra
While the price of FB stock made a rally on the day alongside the rest of the DOW, even Facebook’s shareholders appear unconcerned with libra.
FB stock was lackluster throughout May and actually fell earlier in the week following news of the June 18 announcement. Either investors don’t care about the coin or believe it will have little impact on the company’s profits. As previously reported, Facebook’s aging user base and broke teen demographics are unlikely to adopt the coin.
Like for Crypto Payrolls
The only positive takeaway from the report is Facebook promoting libra salaries for employees. Crypto-based paychecks have been a heavily debated source of adoption for the industry.
However, crypto exchange Kraken reports that more employees are asking for payment in bitcoin, a trend Facebook could continue.