According to Barclay, the Facebook coin that will be generated this year 2019, will most likely rake in about $19 billion in revenue alone. Currently, Facebook is prepared to debut its very own Cryptocurrency in the first quarter of the year.
With this announcement comes the forecast from one of Barclay’s analysts. Billions will be generated the analyst claimed.
Moreover, reports from CNBC claims that Barclay analyst; Ross Sandler sent in a note as of Monday to clients of the firm.
The note stated that the decision made by the social media platform to bring in virtual currencies all over its platforms such as Instagram, Facebook and WhatsApp will likely produce anything from a range of $3 billion down to $19billion in an added revenue by the year 2021.
Barcelona’s Trading Conference
The Barcelona trading conference is another of the top three Cryptocurrency trading events around the world.
However, in the last year, this firm with headquarters in Menlo has been ridiculed will diverse controversies. One of such which includes a data breaches via Cambridge Analytica which is based in London.
Also, hey had the issue of allegedly utilizing ad campaigns to meddle in the election affairs of the United States. All these had an effect on the share price of the company for a long time. This has added a 30% yearly gain for them.
According to Sandler, the mere establishment of this revenue stream will begin transforming the story Facebook shares.
While it has not been officially announced, diverse media sources have already revealed that Facebook; the giant of social media platforms is working on the invention of its virtual currency.
It would be known as Facebook Coin. Also, to curb any issue of price swings, Facebook will place its Cryptocurrency against the United States Dollar. This will, in turn, create a stable coin.
Back in 2017, this Facebook company which is based in California basically brought in about $40.6 billion in its overall revenue. And from it, $39.9 billion was produced from just advertisements on the social media platform.
Barclay also stated that the diverse attempts to create a revenue stream that does not pertain to advertising, most especially the ones that do not exploit the privacy of users, will most likely be well approved by shareholders of Facebook.
Basically, the Facebook coin will not be the first traditional currency to be created from the platform. Back in 2010, Facebook brought out a digital currency for its platform. This currency was known as Facebook Credits.
It could be purchased in exchange for fiat currencies, and it was similar to digital currencies that were used in diverse applications and games.
Additionally, Sandler made mention of this fact that the last project failed and the platform had to beat the storm of currency interchange. This will affect the profitability of the company negatively.
It will be much more felt when carrying out a high amount of decreased value transactions.
However, calculated eight years ago, it is evident that the market and its technology have grown meaningfully and now the company plans on generating a virtual currency that would highly invigorate the business plans.
According to checks carried out, the first edition of the Facebook coin will be a distinct purpose coin created for micropayments and local peer to peer money transfer.
However, to bolster the static of its Blockchain technology, Facebook has gone on to acquire and hire the complete team of ChainSpace; a Blockchain startup.