Mark Zuckerberg and his gargantuan social media platform Facebook didn’t start their relationship with the crypto world too well. Facebook imposed blanket bans on all ads related to cryptocurrencies and projects back in January 2018, forcing many other advertising platforms to ban the ads as well. However, Facebook then backtracked on the ban and began to allow certain crypto related ads back as Facebook’s relationship with crypto began to warm up. Now, Facebook is full steam ahead with the creation of its own cryptocurrency, but Binance’s CFO has slammed the token as “dangerous”.
An Assorted History
As far as Facebook goes, it’s history with data protection and community decisions isn’t looking great. With numerous data leaks and the notorious leadership style of one man making all the decisions, a crypto token might be devastating for the platform. Wei Zhou – Binance CFO – said
One of the key things that we’ve seen is that the blowback against Facebook is it’s not a community-driven organization. Key decisions are made by one person.
The idea behind blockchain technology and tokens is that the community supports the project and adds to it – Facebook won’t allow that to happen. It will be creating a closed ecosystem that won’t allow new firms to join. Talking about the potential Facebook blockchain ecosystem, Zhou added:
It will wall off other people from coming into it.
Facebook Has Been Planning for a While
In August 2018, Facebook began hiring staff with blockchain experience and skills as well as developing a blockchain arm. From there, rumors began to grow and circulate that Facebook is creating its own token. However, Facebook didn’t confirm the news until March 2019 – leaving the crypto industry on the edge of its seat for seven long months! Zuckergerb’s sister – Randi Zuckerberg – has been trying her hand out in the crypto world as she joined the Huobi Advisory Committee back in August 2018. The insights she gained here could have a major influence on the future of the Facebook coin.
The Facebook token will likely be used to pay for items in the Facebook ecosystem, ranging from ads to in-game credits. Facebook is looking to completely take over the online world and create a living and breathing ecosystem that users never want to leave. If it manages to pull it off, the Facebook coin could end up being no more than a replica of XRP – a private token on a private network controlled by an organization. This could then end up creating the same courtroom dramas that Ripple is going through! Let’s see what the future has in store for the Facebook coin!