Facebook Reportedly Seeking $1B USD For Its Crypto Project

News | April 10, 2019 By:

Social media giant Facebook is reportedly looking to get venture capital firms to invest in its cryptocurrency project.

In February of this year, it was reported that the social media giant was planning to launch its own cryptocurrency, which will allow users to send money to the contacts on their messaging systems. New York Times (NYT) repoted that Facebook has already begun shopping the “Facebook coin,” which will be backed by a basket of different foreign currencies, around to unnamed crypto exchanges.

Citing unnamed sources, NYT tech reporter Nathaniel Popper recently twitted that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project.

“I hear they are targeting big sums — as much as $1b,” Popper said. “Given that one of the big allures of blockchain projects is the decentralization, getting outside investors could help Facebook present the project as more decentralized and less controlled by Facebook.”

Popper went on to add that Facebook is considering “using the money as collateral for its cryptocurrency.”

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

In December 2018, Facebook embarked on an aggressive hiring spree to woo crypto experts to expand its blockchain group, which is led by former PayPal President David Marcus. In February, Facebook made its first blockchain-related acquisition by acquiring Chainspace, a small blockchain startup founded by researchers from University College London.