Project Libra, the cryptocurrency initiative of Facebook has also led to the formation of an Association to facilitate the decentralization of the cryptocurrency. These are called nodes or validators; the validators are made to pay a hefty fee and promised returns on it. Moreover, it works on distributed consensus, i.e., numerous validators working on a single ledger. Hence, confirming malicious transactions can also incur punishment to the nodes.
The partners or validators of the cryptocurrency includes some of the most prominent industry leaders from around the world. Reported previously, Visa, MasterCard, Uber, and PayPal included the lost of backers. Some of the other names which have come up are Vodafone, Coinbase, Spotify, eBay and so on.
Facebook’s Projected Growth
According to a leading market Global investment bank, RBC, Facebook’s Globalcoin will generate new revenues for the company. RBC analysts Mark Mahaney and Zachary Schwartzman said in a note to investors,
“We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams,”
The price target of Facebook’s stock, according to them, is $250. Anderson Horowitz is also a member of the association who has invested $10 million. Mahaney and Schwartzman also said,
“We believe Facebook will use crypto to facilitate a platform for: 1) Payments; 2) Commerce; and 3) Applications & Gaming,”
Facebook has over $2.3 billion users, not including users in its subsidiaries WhatsApp and Instagram. The introduction of a new cryptocurrency will initiate payments among all these users. Moreover, the associate members also include eBay and Vodafone, which will enable more users to use to cryptocurrency in any amounts.
Facebook’s primary source of income is through advertisements. According to estimates, the company might expect a $19 billion rise in revenue by cutting the cost paid to handle online payments through third-party sources.
Facebook also plans to give out employee salaries in the form of the new currency. The cryptocurrency promises stability, fungibility, and cross-border transactions. Moreover, eBay, which is one of the largest online marketplaces globally, could also implement it as a mode of payment.
Applications and Gaming
The sources have revealed that Spotify, Zapo, Uber, and other apps and online gaming giants are also looking to integrate with Project Libra. Facebook supported Log-ins in favorite games like poker, PUBG, and numerous others could also extend support for the new cryptocurrency wallets.
Furthermore, Coinbase’s interest also increases the possibility of it getting listed on the Exchange. This is a good piece of news of cryptocurrency investors. Nevertheless, the new regulations and the market share of the new cryptocurrency can also adversely affect some altcoins.
What will the estimated market capitalization of the new cryptocurrency? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst 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