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Facebook seeking VC firms to invest in crypto project; funding will be used as collateral, says Nathaniel Popper




Facebook seeking VC firms to invest in cryptocurrency project; funding will be used as collateral, says Nathaniel Popper
Source: Unsplash

Social media giant, Facebook, recently announced that it would launch its own cryptocurrency, Facebook Coin. The American social media company is now back in the spotlight after reports suggest that it is seeking around $1 billion in funding, for its cryptocurrency project.

According to reports, Facebook’s cryptocurrency would enable WhatsApp users to make faster cross-border payments. The coin will be backed by fiat currencies such as the U.S Dollar and the Euro.

Nathaniel Popper, a Technology reporter at The New York Times, broke the news on Twitter. He tweeted,

“Update on Facebook’s cryptocurrency: Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums — as much as $1b.”

He further stated that this “getting outside investors” could benefit Facebook as their cryptocurrency project will come across as a more decentralized platform and “less controlled” by the social media giant, considering the fact that decentralization is one of the “big allures of blockchain projects.”

Additionally, the reporter stated that Facebook was “talking about” using the money raised via the funding round as collateral for its cryptocurrency. Nathaniel Popper added,

“Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts. It’s interesting to think of one of the richest companies on earth raising money. When was the last time they did outside fundraising?”

Interestingly, Ross Sandler, Barclays’ internet analyst, had recently stated that Facebook’s cryptocurrency project’s estimated additional revenue could be $19 billion by 2021, while the base revenue was estimated to be around $3 billion, upon the successful implementation of the project.

He 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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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Binance Chain’s ‘decentralization’ questioned by Bitcoin enthusiast; calls Binance DEX just an app




Binance Chain's "decentralization" questioned by Bitcoin enthusiast; calls Binance DEX as just an "app"
Source: Unsplash

Udi Wertheimer, an independent developer and a “Bitcoiner” posted a series of tweets taking a jab at Binance Chain, which is slated to launch on April 23.

According to Wertheimer’s tweets, Binance has not updated the “source code” or “binaries” for the Binance Chain; and despite enquiring about it on the official telegram group of Binance, he was offered any source code.

He said that Binance recommended users, who want to migrate tokens to Binance chain, use the official SDK, which will be done via official HTTP API using Binance’s trusted servers. Binance DEX, which will make use of the Binance Chain, also has no source code or binaries which are open source. He stated:

“There’s almost nothing there. So I looked for the source code. Guess what, THERE’S NO SOURCE CODE. They only have binaries, and only for a light client, no full node at all!”

He commented on the Binance Chain and the Dex that all Binance did was release an “app that connects to the API of your new centralized infrastructure”. In addition, the “Light Node” is a program that helps users access and interact with the Binance Chain in a secure and decentralized manner; the source code for which is “closed source” according to Wertheimer.

Wertheimer further added:

“Just releasing the binaries won’t be enough, and there’s no indication I could find anywhere that they intend to release the source code, like, ever. In any case, regardless of what may happen in the future, what’s released so far amounts to nothing more than a new website.”

A Twitter user, @bag_holder commented:

“Lol seems like a very Chinese thing to do. “BORROW” IP, make some edits, then keep it to oneself”

Another Twitter user, @thecryptostefan commented:

“There’s a branch with the full node implementation, no? I thought they just hadn’t merged it to master yet when I was looking last night. I think it’s the prerelease branch or one of those.”

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