A New York Times reporter claims to have some interesting information about the upcoming Facebook Coin project. The social media giant may be seeking as much as $1 billion in funding from venture capital firms for its new crypto.
More specifics are emerging about Facebook Coin, which was first introduced as an idea towards the end of 2018. Recently it was confirmed that the crypto will probably be a stablecoin tied to a basket of different cryptos, and it will be used throughout the entire Facebook eco-system, including WhatsApp and Telegram.
Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook.
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It was the New York Times itself that broke these latest details, and now reporter Nathaniel Popper is claiming to have a source that suggests Facebook is looking for a big financial commitment from VC firms. This would be the first time in a while that Facebook has sought external investment, as one of the planet's most successful businesses has generally been capable of funding its own projects.
It's interesting to think of one of the richest companies on earth raising money. When was the last time they did outside fundraising?
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Popper claims that this involvement of other institutions may go some way towards limiting accusations that the Facebook Coin project has too much centralized control from Facebook itself. Observers pointed out that investment from other entities doesn't necessarily make the project decentralized, and also suggested that it may be more subject to regulation as a security due to this move.
Taking outside investors would also make the project much more likely to be considered a security.
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Question is:
- who governs the network?
- Who decides who can be a validator?
- who takes on the KYC? Facebook profiles?
- who decides on the tech?
Facebook has already proven it will always fail on governing
Sounds like Facebook Coin will fail the SEC No Action Letter Test..
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