A few days back, Facebook announced their reversal ban of cryptocurrency and blockchain related ads. Shortly after that, there were a lot of rumors on how Facebook is looking to get into the cryptocurrency and blockchain space with the possibility to acquire Coinbase.
The news was first reported by The Economist with rumors of a Coinbase takeover and Facebook’s interest at the start of this month, and if you think about it, it makes perfect sense.
Are the rumors true?
Blockchain expert and co-founder at Orvium, Manuel Martin said; “While yesterday’s announcement does not mean that the rumors are necessarily true, it is clear that Facebook is aware of the potential of crypto projects.
After the implementation of the initial ban period on their platform for crypto project advertisements, they are now reversing that ban, altering the situation. Taking this into account, it is very likely that they are considering additional ways to enter more directly into the crypto market.
Acquiring Coinbase would be a great entry point because it is one of the key reference platforms for digital currency exchange in the world. I firmly believe that we will hear more rumors and see other tech giants taking part in the blockchain.”
Gianluca Giancola, Co-founder and Head of Design & UX at blockchain-powered loyalty ecosystem qiibee, commented –
“Although there is currently no evidence to support the rumors that Facebook will buy Coinbase, the reversal of the crypto ad ban this week is a strategic move for the platform into the blockchain space.
After announcing the executive blockchain team back in May and the appointment of Coinbase’s David Marcus to lead the division, we wouldn’t be surprised if a takeover is in the works. Considering the numerous scandals Facebook has endured in recent months with regards to data protection, this steer into crypto adoption would be a wise move.
Acquiring Coinbase would significantly boost Facebook’s value, and utility, as well as help restore lost credibility among users and add some much-needed legitimacy to the crypto space.
Despite many large corporations venturing into blockchain in recent months, on varying levels, we are yet to see a behemoth such as Facebook fully engage with the technology.”
Zuckerberg’s thought on decentralization
Facebook co-founder Mark Zuckerberg posted an entry on his Facebook page discussing the potential behind decentralized currencies, saying –
“One of the most interesting questions in technology right now is about centralization vs. decentralization.
With the rise of a small number of big tech companies… many people now believe technology only centralizes power rather than decentralizes it.
There are important counter-trends to this – like encryption and cryptocurrency – that take power from centralized systems and put it back into people’s hands.”
Zuckerberg concluded his post by saying he was “interested to go deeper,” and figure out “how best to use them” through the Facebook platform.
What does this mean for the average consumer?
If Facebook does indeed make the move to acquire Coinbase, it will allow consumers to be more aware of the cryptocurrency and blockchain space.
Nonetheless, with Facebook’s recent shift in relation to cryptocurrency advertisement still fresh, and the close ties between the two companies, it does certainly appear as if there might be fire where there’s smoke.
The more awareness of cryptocurrency means that blockchain will be mainstream a lot quicker.
What do other journalist have to say about this rumor?
Yesterday, a new article from The Independent added further grist to the mill of those proclaiming an imminent Coinbase purchase, which reiterated the reports of Facebook being interested in buying Coinbase.
The article quoted tech entrepreneur Oliver Isaacs as saying that it would ”not come as a surprise” if Facebook made a bid for Coinbase. Rather, the real question would be whether Coinbase would accept such an offer.
Ripple’s effect on this
Other implications of this could also involve Ripple XRP, the currency fighting to get a listing on Coinbase. With Ethereum Classic next to be added, we know Coinbase are looking to generate more listings, but as we know, problems surrounding Ripple’s ownership of XRP is calling XRP into question. A security-based question that is stopping XRP getting that shining listing.
If Facebook takes over Coinbase however, could they make changes that would see Ripple XRP listed on the exchange? Moreover, if Facebook takes over Coinbase and decide to make their own cryptocurrency, would it become a rival of Ripple XRP and thus, could Facebook ensure that Ripple XRP never sees a Coinbase listing?
This is all speculation, obviously. But, it is worth thinking about.
As of now, everything is still in rumor mode, which means nothing is finalized, but this could be a big step for the cryptocurrency and blockchain space.
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