Since the public found out that Facebook is working on a secret project to develop its own cryptocurrency, the public still seems to be entertained by such an idea.
Two weeks ago, Newconomy reported on Facebook’s work to roll out its own digital coin, the so-called “Facebook coin”. The project is intended for its messaging platform Whatsapp, which reportedly has around 1.5 billion users. Similar projects are underway at Telegram and Signal, the New York Times reported.
The coin would be designed as a stable coin to allow instantaneous sending of coins to contacts on the platform.
“It’s pretty much the most fascinating thing happening in crypto right now. They each have their own advantage in this battle, and it will be insane to watch it go down,” said Eric Meltzer, the co-founder of venture capital firm Primitive Ventures.
The latest analysis from Barclays, the UK-based banking giant, estimates up to $21 billion in revenues by 2021 for Facebook, if it should manage to develop its own cryptocurrency. Other, much more conservative scenario, sees the additional revenue for the online giant at $3 billion.
Such a development can prove to be a “game-changer”.
“Merely establishing this revenue stream starts to change the story for Facebook shares in our view,” said Ross Sandler, internet analyst at Barclays.
Facebook (NASDAQ: FB) hit the all-time high of $218.62 in July 2018, but then lost almost half of its value by dropping to the 2-year low at $123.42 in December of the last year.
“Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders,” added Sandler. Thus, “using some form of cryptocurrency could generate a new revenue option, something sorely needed at this stage of the company’s narrative,” Sandler said.
Facebook’s current market capitalization is set at more than $480