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Facebook Coin: Weiss Ratings slams crypto-project; claims FB is ‘noticeably absent’ from DLT discussions

Akash Anand



Facebook Coin gets slammed by Weiss Ratings, claims company is 'noticeably absent' from DLT discussions
Source: Pixabay

The cryptocurrency industry has seen a resurgence in terms of price recently, after a majority of the top coins recorded double-digit gains over the week. In the middle of this, Weiss Ratings, the popular cryptocurrency rating platform, has taken up arms against the much-talked about Facebook Coin, tweeting,

“#FB allegedly recruiting financial firms to develop its own #crypto, project codename Libra. Financial firms are being recruited yet, #Facebook is “noticeably absent” from discussions about using #DLT to enhance user privacy. What does that say about #FBCoin? #ThisIsNoCrypto”

Weiss’ attack comes in the wake of many organizations pointing out Facebook’s tumultuous history with user privacy, citing cases such as the recent account leak and the scandal associated with Cambridge Analytica. There have also been concerns about how the tech behemoth will focus on getting more people on its roster, rather than focus on Distributed Ledger Technology that was intended to be its main focus.

Even Andreas Antonopoulos, author of Mastering Bitcoin and famous Bitcoin proponent, had previously attacked Facebook, claiming that the social media giant will sell user transaction data to commercial companies. He had said,

‘They are centralized, censorable, bordered, controlled, [permissioned], and closed systems… that have the same characteristics of fiat, but are simply now digital. Guess what? We already have digital fiat. All banks operate primarily with digital fiat. About 92% of the money supply in the world is digital fiat, with no physical equivalent in cash.”

Despite such attacks, the Mark Zuckerberg-led company has been aggressively pushing its agenda. It recently hired two former Coinbase employees to join Facebook Coin’s compliance team. Barclays had previously predicted the project’s success, claiming that the cryptocurrency could potentially be worth $19 billion. Ross Sandler, an internet analyst with Barclays, had said,

“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”

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Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report




Ampleforth could help create next gen synthetic commodities for diversification of portfolios claims new Blockfyre report
Source: Unsplash

Ampleforth was the first token to successfully complete an IEO on Bitfinex. This IEO caught the attention of a lot of users in the cryptospace, as the $5 million hard cap was sold out within the first 11 seconds. A new report by Blockfyre details how Ampleforth could pave the way for a new asset class for portfolio diversification in the future.

The report also highlighted a feature of Ampleforth that allows a flexible supply that adjusts to the market demand, while price simultaneously finds equilibrium. The token also aims to tackle the strong correlation that most cryptocurrencies share with Bitcoin.

Synthetic Commodity

Ampleforth project has the ability to create synthetic commodities that are disconnected when it comes to price fluctuations due to correlations, which is a common problem faced by both cryptocurrencies and traditional asset classes. Although Bitcoin was created to tackle problems that fiat currency inherently has, it still has some correlation issues.

In a world where traditional assets are widely affected by macroeconomic and global political scenarios, Ampleforth aims to create a new asset class, Synthetic Commodity, to tackle this problem.

The report stated,

“BTC as a synthetic commodity doesn’t show correlation to traditional markets such as stock stocks and bonds. Thus it reflects a potential good investment for portfolio diversification, in order to tackle macro-economic recession”

Although BTC is an uncorrelated asset, other cryptocurrencies are widely correlated to it. Ampleforth’s protocol introduces synthetic assets that “will always find a price-supply equilibrium by adjusting the price due to demand.” The report added,

“It needs to be emphasized, that these price-supply information will always be distributed amongst all token holders, so the supply of all token holders will decrease / increase. As a result, the overall cut of the total supply for each person will always remains the same.”

The report further said that if successful, Ampleforth will directly compete with Bitcoin’s $145 billion market cap and also against traditional asset market-based in fiat.

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