A few days back, Facebook announced its reversal ban on cryptocurrency and blockchain-related ads. Shortly after that, there were a lot of rumors about how Facebook was looking to get into the cryptocurrency and blockchain space with the possibility of acquiring Coinbase.
The Economist first reported the news 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 implementing 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 world’s key reference platforms for digital currency exchange. I firmly believe we will hear more rumors and see other tech giants participating 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 Coinbase’s David Marcus appointment to lead the division, we wouldn’t be surprised if a takeover is in the works. Considering the numerous scandals Facebook has endured recently about 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 thoughts 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 technology questions right now is 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 in going deeper” and figuring out “how best to use them” through the Facebook platform.
What does this mean for the average consumer?
If Facebook does indeed make a 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.
More awareness of cryptocurrency means that blockchain will be mainstream much quicker.
What do other journalists 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, reiterating 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 is looking to generate more listings, but as we know, problems surrounding Ripple’s ownership of XRP are calling XRP into question. A security-based question that is stopping XRP from getting that shining listing.
However, if Facebook takes over Coinbase, could they make changes that would see Ripple XRP listed on the exchange? Moreover, if Facebook takes over Coinbase and decides to make its own cryptocurrency, would it become a rival of Ripple XRP? 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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