Facebook Allegedly Seeking USD$1 Billion VC for Cryptocurrency Project
Author and NYT’s writer Nathaniel Popper tweeted today that sources are telling him that Facebook is seeking to raise up to USD$1 billion dollars for their cryptocurrency project – mostly like to prop up a stable coin with a massive reserve.
Facebook paid $19 billion when they acquired WhatsApp. What do they need VC for?
“Facebook hired former PayPal President David Marcus in 2014, first as head of their Messenger app, now running a whole new department under the title of “Director of Engineering, Blockchain.”
Facebook’s blockchain department has 40+ employees already.
There are 22 job listings right now as Facebook is hiring even more people for their blockchain department.
Facebook is seeking $1 billion from VCs to fund their cryptocurrency project.
Adding a stablecoin to WhatsApp is not a project that takes 60+ people in a whole new department or a billion dollar budget. Regardless, Facebook doesn’t need investors to cover a $1 billion expense.”
Davis thinks that there is much more to the story and pontificates there’s more in the works than just adding a blockchain-backed ‘send money’ feature to a messaging app. He believes that Facebook will go on a massive acquisition spree in the blockchain and crypto industries.
The Blockchain News team thinks that the reserves needed to back a stable coin from Facebook will be massive and perhaps Zuckerberg and his team want to spread the risk amongst institutional investors and VC.