After dominating the social network space since its entry into the market, Facebook has become the choice of most social network goers. The entry of Facecoin (FC) into the crypto sphere is not a surefire way of gaining acceptance among digital money enthusiasts.
The Facebook coin could be a noble idea but comes at a time when there other crypto outfits that are already monetizing social media content. With Facebook user confidence on the lowest ebb, many users are turning to platforms that value their online activity and this has seen the number of active users on the social network on the decline. Here are some reasons why Facebook blockchain inversion is not a walk in the park.
Lack of Global Crypto Awareness
Most Facebook users are not crypto aware and for the platform to educate the user on the benefits of using Facecoin might take longer than the developer team anticipates. Converting the current Facebook goers into investing in Facecoin will take several years.
With over 2.2 billion users spread across the globe, Facecoin (FC) visibility will take time since not all users understand how cryptocurrencies work. With crypto advertising ban still hurting the market, Facecoin will only thrive on Facebook ads that not every user frown at.
Facebook Multiple Accounts Dilemma
It is no secret that there are individuals out there that own multiple Facebook accounts and this could change given that all cryptocurrencies are required to comply with the SEC Know Your Customer (KYC) requirements. The requirements do not allow users to create two accounts and this could affect the number of active accounts on the social network.
The multiple account issue will also affect the over 65 million businesses that have been riding on Facebook pages and the over 6 million outfits that run adverts on the network. The current multiple accounts have been the selling point for the outfit and once KYC is applied, the reach might head south and the ad revenues plummet.
Facebook Shift from Fiat to Crypto
Facebook fans have gone through various types of hacks and trusting the mother network with your digital assets might not be very easy. The recent Facebook data breach is still fresh in the user minds and a Facecoin adoption is not in the minds of the most modern crypto investor.
As much as many crypto enthusiasts are looking for coins with better value propositions including micropayments and getting paid for their online activities, many users are thinking twice before investing on the new social network backed coin.
As much as there is a lot of hype around the entry of a Facebook-backed digital coin into the market, there are other coins and tokens that have a better value proposition that is backed by a clean past history compared to a transitioning outfit that has not given the user the value for their time and trust despite the current Facecoin (FC) price of $0.001827.
The new coin might not pose a huge challenge to mainstream players but for the social networking coins; competition or the existing market share is just beginning and the user is set to benefit for their online activity in a secure and more transparent environment courtesy of the blockchain technology.