Facebook is looking for investors for raising $1 billion for its cryptocurrency project, according to NY Times reporter Nathaniel Popper.
“Sources tell me that Facebook is now looking to get VC firms to invest in the Facebook cryptocurrency project we reported on earlier this year. I hear they are targeting big sums — as much as $1b,” his tweet says.
Facebook Inc. is flushed with cash — it has $10 billion in cash and cash equivalents alone. He assumed that attracting outside investors could help “present the project as more decentralized and less controlled by Facebook.”
Rumors that Facebook is developing its own cryptocurrency, appeared in May. Later it was reported that Facebook is developing a stablebcoin which can be used for money transfers in WhatsApp messaging app. Unlike most other stablecoins, Facebook’s coin would purportedly be backed by a basket of foreign currencies.
In early May, Facebook launched its blockchain team, with the reported aim of exploring the emerging technology. The team is headed by David Marcus, who had previously served as the company’s vice president of its Messenger app division. In July, Facebook’s Director of Engineering of three years, Evan Cheng, joined the blockchain team to fulfill a parallel role dedicated to exploring the technology’s applications.