Cryptocurrency News

Facebook’s Cryptocurrency Could Add to its Revenues by Billions: Agencies

The recent slump in the cryptocurrency market has become a great eye-opener for investors regarding the instability of the Bitcoin. However, FB’s new launch Facebook Cryptocurrency has reinstated the faith of investors. It is believed that FB’s reported stablecoin project could significantly add to its revenues, according to the analysts at Barclays.

According to a report by CNBC, Sandler said that Facebook’s Cryptocurrency launch could add anywhere between $3 billion to $19 billion in additional revenue by 2021. Sandler further said, “Facebook Coin proves successful in reinvigorating FB’s micro-payment strategy for digital content distribution.” Going forward, analysts have estimated that the firm sees a base-case of an incremental $3billion in revenue for the successful implementation of cryptocurrency.

However, experts believe that Facebook still has an impending challenge to overcome. Firstly, it has to decide on the currency proposition, more competitive than the present market offering. Secondly, re-establishing the trust and faith of customers after the 2018 slide. The latter prompted the FB CEO Mark Zuckerberg to release a lengthy post insisting that Facebook will play its role in increasing the privacy setting of the social media site.

Rumors are rife that Facebook is releasing the cryptocurrency for peer to peer payment. It is believed that the global payment method would be functional on WhatsApp. However, Facebook is yet to comment on that.

Analysts noted that much remains unclear about this project by FB. However, one can figure out its launch about the same through its increasing activity on Facebook credit. Sandler, speaking to the media said, “Facebook coin may simply be [looking] to process micro-transactions and re-invigorate the original business model that was in place in 2010-2012 under Facebook Credits. However, the scope of the project could be much larger, especially considering David Marcus (former CEO of PayPal) is heading up the project.”

Facebook, indeed, is gearing up to its new launch, given its hiring spree on the cryptocurrency front. It has also initiated a start-up acqui-hire. Moreover, FB’s jobs and career sections can be spotted with evidence of hiring in the cryptocurrency market.

Interestingly, there are two sides to Facebook’s new venture. While it has to face a major roadblock because of the past slide in the cryptocurrency industry, it might not face that much of a challenge altogether because of the brand. Facebook’s current business model came under fire from consumers, politicians, and advertisers last year. Its share price dropped after a series of high profile setbacks, which included privacy violations. For instance, British political consulting firm Cambridge Analytica collected data of more than 50 million Facebook users without their permission. However, Facebook earnings continued to soar, and the share price has rallied roughly 30 percent this year.

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