NYT Reporter: Facebook is looking for $ 1 billion in venture capital for Crypto Project

3 min read

Facebook is reportedly looking for support from various venture capital (VC) companies to develop the alleged digital token, New York Times (NYT) technology reporter Nathaniel Popper. tweeted on April 8.

With reference to sources familiar with the subject matter, Popper states that Facebook is looking for an amount of $ 1 billion to develop its cryptocurrency project. He argues that looking for external investments could keep the project more in line with the decentralized ethos of the crypto community:

"Given that one of the great allures of blockchain projects is decentralization, external investors can help Facebook present the project as more decentralized and less controlled by Facebook."

Popper added that the reported project is a stablecoin that would be linked to a basket of foreign currencies held in bank accounts.

Rumors about a "Facebook coin" appeared in a Bloomberg report last December. The publication then reported that the token would be used for money transfers within the WhatsApp courier service and would focus on the remittances market in India.

In February 2019, NYT announced that the token would be useful in the Facebook Messenger app WhatsApp and Instagram, exposing it to approximately 2.7 billion users every month. Anonymous sources have told NYT that Facebook has used more than 50 technicians to develop its cryptocurrency. In addition, Facebook is said to have started buying the "Facebook currency" in the unnamed crypto exchanges.

Regarding venture capital, the founding partner of Future Perfect Ventures, Jalak Jobanputra said in February that the crypto bear market had hit VC offices badly. When asked if there is a trend of discounted venture evaluations about the digital currency space, Jobanputra said that "given that volumes have declined in the past year, I would not be surprised if we see the valuations on the secondary markets fall for some of these companies. "

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Don Bradman

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