From an economics POV I find it interesting that they're going to peg it to a basket of global currencies. That's going to lead to weird price distortions right? Or are the rules a bit different for cryptocurrency?
A smart way to launch this would be to start incentivizing engagement with Facebook by giving coins away (i.e your post gets X number of likes, or your video X number of views, you get X number of coins you can spend on real stuff). People are going to want to spend this "free" money and it will create a virtuous circle where merchants will be incentivized to accept this money.
It would require a lot of losses the first few years but the size of the prize could be huge - and Facebook is big and profitable enough to afford a new business that will lose money for a while.
Facebook execs are out of touch with reality. The company has demonstrated that it can’t be trusted with users’ cat pics, and they think people will trust them as a banking and payment platform? That is absurd. This is shortsighted, and it will fail after a few hacking and theft incidents turn into headlines. Facebook execs will probably be dumb enough to try to censor problems related to the cryptocurrency platform such that users can’t share damaging news stories.
> Facebook execs are out of touch with reality
Silicon Valley: an industry filled with some of the most brilliant people in the world but also filled with people increasingly out of touch with reality.
The irony of it is that this very 'out of touch with reality' attitude is the very same attitude that allows them to embark on ridiculous projects and actually succeed.
StrongLLC(ノಠ益ಠ)ノ彡 [̲̅$̲̅(̲̅ιοο̲̅)̲̅$̲̅]9 months ago
If this is an ERC-20, it will probably be very bullish for the public Ethereum network for awhile. It's a payment coin and not a platform coin, so I'm assuming that it isn't going to detach and form a mainnet separately (at first at least, will give lots of gas fees.) it will be a pleasure to get something back from facebook after giving them my data for a few years (been off it for years)
The social networking site, which owns WhatsApp and Instagram, is hoping to disrupt existing networks by breaking down financial barriers, competing with banks and reducing consumer costs.
Facebook has come under fire in recent years over its handling of users' personal data, and regulators are likely to examine the launch closely.
Earlier this month, the US Senate and Banking committee wrote an open letter to Mr Zuckerberg questioning how the currency will work, what consumer protection will be offered and how data will be secured.
Facebook has also discussed the process of identity checks and how to reduce money laundering risks with the US Treasury.
It is believed that Facebook and its partners want to prevent wild swings in the coin's value by pegging it to a basket of established currencies, including the US dollar, euro and Japanese yen.
It's not the first time Facebook has dabbled in digital currencies. A decade ago, it created Facebook Credits, a virtual currency that enabled people to purchase items in apps on the social networking site. However, Facebook ended the project after less than two years after it failed to gain traction.
The company will also have to navigate a myriad of regulations in the countries it wants to launch in. India, a rumoured target for Facebook, has recently clamped down on digital currencies.
However, the biggest test is likely to be whether people will trust the social networking giant enough to start changing their cash for the digital coin.
Cmon guys !!! Lets give them a chance, Maybe they are running short of money AFTER selling all of our personal info and need new sources of revenue !!!
But coming from an entity as big as Facebook, they will probably market it to their entire base of users as the new HIP thing and most of the dumb users will buy. Looking at this stupid coin rise in value, all of us crypto users will also want to FOMO in and then all the money we have HODL'ed in good crypto projects will go here and our good projects will continue declining !!!