Facebook's Upcoming Cryptocurrency Could Generate Extra Revenue For The Market.

Facebook's Upcoming Cryptocurrency Could Generate Extra Revenue For The Market.

2019-03-13 | Robin Williams

Facebook's Upcoming Cryptocurrency Could Generate Extra Revenue For The Market.

In line with a recent report 'published' by CNBC, facebook’s cryptocurrency that is expected to be launched soon, might probably generate around $19 Bln’s in additional revenues by 2021.

Barclays web analyst named ‘Ross Sandler’ wrote in a client note adding that a cryptocurrency may open a brand new revenue stream for Facebook, aiding its share price that 'tanked' amid a series of high-profile scandals occurred last year.

Within the forecast, Sandler outlined that the cryptocurrency-based revenue option is something “sorely required at this stage of the company’s narrative,” stressing that any advertising-free revenue streams are possibly to be well-perceived by Facebook’s shareholders. Sandler aforesaid that his additional conservative revenue estimate for the new coin worth around $3 Bln.

The Barclays analyst recalled Facebook’s original payment project that was kind of alike what crypto-currencies use nowadays. Developed by California-based firm The Menlo Park in 2010, “Facebook credits” resembles a virtual currency that allowed users to pre-pay those credits deploying domestic currencies and then use them for in-app-purchases.

Sandler stated that 'Facebook' can bear the brunt of interchange prices between fiat currencies and its attainable new cryptocurrency, that might cut away the profitableness of the business.

Citing analysis from Barclays, Sandler added that the primary version of Facebook's Coin might be a single purpose coin for micro-payments and domestic p2p [peer-to-peer] transfers, that is considered “very alike the original credits from 2010.”

Sandler conjointly assessed the scope of the project, noting that it's larger than previous ambitions of 'Facebook'. The analyst pointed to David Marcus, the 'leader' of Facebook’s blockchain and crypto team, who is former president of the renowned payment operator ‘PayPal’. Sandler additionally noted that Facebook has recently 'deployed' several of its staff from blockchain startup named ‘Chainspace’.

As per a recent 'report' published by Bloomberg on Facebook developing its own cryptocurrency earlier in Dec. last year. The NYT [New York Times] revealed another 'article' alleging that the social media giant is “hoping to succeed where Bitcoin [BTC] failed” with its extremely secretive cryptocurrency project. In line with NYT, fifty new employees are working on the development of a stablecoin that might incorporate Facebook’s 3 fully-owned apps - WhatsApp, Facebook Messenger, and Instagram.

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