Facebook’s cryptocurrency could generate $19 billion in additional revenue by 2021, Barclays internet analyst Ross Sandler predict. However, his more conservative revenue estimate for the new coin is $3 billion.
“The cryptocurrency could establish a new revenue stream for Facebook, aiding its share price that tanked amid a series of high-profile scandals last year,” Sandler wrote in a client note.
The current business model of Facebook has been criticized by consumers, politicians and advertisers during the past year. The company’s stock price fell sharply after a series of failures. The launch of Facebook coin can be a lifeline for the social network, as it will give a new source of non-advertising income. Ross Sandler underlined that any advertising-free revenue streams are likely to be well-perceived by Facebook’s shareholders.
As a reminder, Facebook has been hinting at a keen interest in blockchain for some time. Facebook is now increasing its blockchain-related staff. Social media giant hiring 20 specialist, including: threat investigator, technology communications director, data scientist, two product managers and a product designer, marketing and brand strategy managers, various UX researchers and other roles.
In December 2018, the social media giant was hiring five new staff members for blockchain team at its Menlo Park, California. Back in May, Facebook launched its blockchain team, with the reported aim of exploring the emerging technology.