Major Russian Social Network Seeks Ways to Adopt Cryptocurrency

Major Russian Social Network Seeks Ways to Adopt Cryptocurrency


Russian social network VKontakte is considering the creation of a custom cryptocurrency, but the final decision is yet to be made, Rambler News Service (RNS) reported. According to the corporate source, this project may allow crypto storage for all current users of the social network.  

The project’s presentation obtained by the RNS assumes that a user can be awarded crypto for the time spent in the social networking service. In its turn, tokens could be stored, transferred, exchanged for goods or converted into fiat currency using the existing VK Pay service. This is the first fintech service, developed by VKontakte, which was launched in June 2018.

Publishing “interesting” posts is another way to get crypto – readers will be able to award an author using the endorsement options.

VKontakte is the leading social service in Russia. According to the network’s administration, there are 97 million users monthly with more than 6 billion messages being sent every day.

The project was launched in 2006 by an entrepreneur Pavel Durov as an application for the students of Saint Petersburg State University and over a few years has grown up in a nation-wide social network.

Durov led the company until 2014, when he sold the company after a fierce corporate conflict. The businessman moved to the USA and focused on developing the Telegram mobile messenger, launched a year earlier. In 2016, Durov has at the first time hit the top 200 richest businessmen in Russia according to Forbes magazine with an alleged $600 million wealth.

In the end of 2018, the Telegram audience has reportedly exceeded 200 million users. Meanwhile, the messenger has caused criticism of authorities around the globe for the refusal to provide user data. In 2015, the application was blocked in China. After the Telegram denied to cooperate with the Federal Security Service (FSS, the KGB successor), it was prohibited in Russia as well. Still, this could not prevent the popularity of the messenger in the country.

Also read: Facebook and WhatsApp Payments are Coming, Says Mark Zuckerberg