Facebook Coin: company may be seeking $1 billion in VC funding

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.

Nathaniel Popper

✔@nathanielpopper

· 8h

Update on Facebook's cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums -- as much as $1b.

Nathaniel Popper

✔@nathanielpopper

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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12:12 AM - Apr 9, 2019

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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.

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.