Facebook’s cryptocurrency endeavor, Project Libra is in full throttle as the Social Media is reaching out to industry leaders in cryptocurrency. Co-incidently, one of them is owned by Mark Zuckerberg’s arch-rivals: the Winklevoss Twins.
Reportedly, Facebook executives have approached Gemini and Coinbase Exchange to list its cryptocurrency on their platform.
Ben Mezrich, the author two books on the Winklevoss Twins, The Social Network and Bitcoin Billionaires is closet parties in the discussion here. According to him, each of their successes affects the other one. On Facebook’s move to approach Gemini, he said,
“Facebook’s idea is to launch their own crypto, So who do they have to reach out to? Now the twins know more about this than Facebook does, so they’re one of the people that [Zuckerberg] has to go to to get into this world. ”
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Furthermore, Gemini is one of the most regulated exchanges in the US. Van Eck filed its ETF application in association with Gemini with the SEC. Gemini provides OTC markets and custody arrangements for high-volume traders. On the other hand, Coinbase is one of the largest and most influential retail online cryptocurrency exchange.
As expected, the cryptocurrency, in all probability, will be linked to the dollar. According to the press release, Facebook has also approached esteemed market makers: Jump and DRW, to ensure that the value is pegged to the dollar and can be easily exchanged.
Apart from these firms, Facebook has also held talks with the Bank of England and Western Union to build its payment and settlement system on the Blockchain.
Nevertheless, the inclusion of cryptocurrency on Exchanges like Coinbase would increase the overall volume of transactions on the cryptocurrency Exchange. Facebook has a large user base of over 2.4 billion people.
Hence, this, in turn, can be beneficial for Bitcoin and the cryptocurrency markets as part of the volume will pour into other cryptocurrencies, especially Bitcoin. However, it might also increase the potential risk of increased speculation in cryptocurrency prices. According to the press release, the Exchanges have denied commenting on the issue for now.
Do you think that inclusion for Facebook in cryptocurrency exchange will be good for the markets or it will affect it adversely? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com