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Facebook registers ‘Libra Networks’ in Geneva for developing blockchain technology

Sarvesh Kumar

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Facebook working on Libra a cryptocurrency venture of the social media giant
Source: Pixabay

Facebook, on May 2, registered Libra Networks, a firm specializing in developing blockchain technology, in Geneva. This is their first foray into developing in-house blockchain technology and could have adverse effects on the crypto-market, if speculations are to be believed.

Recently, the United States Senate sent out an open letter to Mark Zuckerberg, asking details about their cryptocurrency project named “Libra”. This came out after they read about it in an article by the Wall Street Journal.

The project is likely to be released in the second quarter of 2019 and the development team was already set up last year. It is looking at introducing a coin which users can spend on its website or any other. According to the report by Wall Street, Facebook is also looking at backing its crypto-coin with the dollar reserve. This is done to make it less volatile from Bitcoin and other cryptocurrencies.

Libra will be looking at investing, payments, financing, blockchain and other technologies to work on via their newly established firm. The social media giant is in talks with all major payment networks like Visa, Master Card and more and is looking to raise around $1 billion for the crypto-project. The crypto research team is expected to be headed by David Marcus, the ex-PayPal president.

However, the crypto-ecosystem is skeptical of Facebook entering the crypto-verse. One of the reasons for this is their past controversies surrounding the sale of user data to third parties. Following the issue, people now allegedly maintain a notion that Facebook could repeat history and sell their private data to any third party and this could spell disaster for crypto-users.

India is one of the biggest markets for Facebook as India has the highest number of WhatsApp users across all markets. While looking at the crypto-market in India, Facebook may have to make large changes in its policies owing to the possibility of a blanket ban on cryptocurrencies in India.





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I am a journalist here at AMBCrypto. I cover news on prices of various coins in the crypto-verse and also work on the latest news of coins like - Bitcoin| Ethereum| Litecoin and more.

Bitcoin

Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000

Akash Anand

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Bitcoin's on-chain/off-chain valuation indicators they key point of focus as crypto heads towards $13,000
Source: Pixabay

With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.

The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.

Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”

At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,

“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”

The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.





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