New York Times reporter, Nathaniel Popper, says Facebook is seeking several venture capital firms for support in developing their digital token. He added that Facebook’s search for $1 billion to fund their blockchain project from the outside investors is in line with the crypto community’s decentralized nature.
Getting investments from outsiders will help Facebook establish their project as decentralized and not solely under Facebook’s control. The cryptocurrency project will be a stablecoin, which means that it would be pegged to a basket of assets or foreign currencies in bank accounts.
The initial rumors for Facebook coin first surfaced in a Bloomberg report December last year. It says that the token was to be utilized for money transfers or remittances in India within the WhatsApp messenger service. However, in The New York Times report in February this year they cited that the token would also be usable throughout the Instagram and Facebook Messenger App as well.
50 Engineers Working on Facebook Coin
It gives the token exposure to an estimate of 2.7 billion users per month. According to the anonymous sources of NYT, Facebook has already employed over 50 engineers to develop their cryptocurrency project. Moreover, they also reported that Facebook has already begun shopping around Facebook Coin to some exchanges.
Venture capital firms have been greatly affected by the bear market, revealed by Jalak Jobanputra, the founding partner of Future Perfect Ventures. He mentioned that with regards to the trend of discounted venture evaluations, it is expected to see valuations for a few companies in the secondary market to come down as seen from the previous year.