Facebook made the intention of launching its own coin public about two months ago. The world’s largest social media is said to be working vehemently on its cryptographic project, which is reportedly scheduled to be launched before this month ends. Crypto commentators have since been weighing the negative impact it could leave on top digital assets like Bitcoin (BTC), Ripple XRP and others.
Facebook has recently confirmed the intending release of its crypto project. The most populous social media had once turned its back against cryptocurrency and anything related to it. It even went as far as filtering crypto promotions out of its news feed, due to the gloomy image and controversy behind the operations of cryptographic projects.
However, Facebook’s recent interest in building its own project coupled with lifting of restrictions to crypto related products has opened door for cryptocurrency news pages to sponsor their posts, in order to reach their targeted audience.
Cryptocurrency Pundits Are Starting to See Facebook’s Intention as Threat
The capacity of Facebook’s user-base is beginning to represent an element of threat to some Bitcoin (BTC), Ripple XRP and other top digital currencies enthusiasts.
Facebook boasts of over 2.5 billion registered accounts, with more than 2.38 billion monthly active users as of March 31, 2019. This record is worthy to dread, doling out its own cryptocurrency is a big deal.
Analysts and enthusiasts in the crypto space have been envisaging on how the forthcoming Facebook coin could affect or topple the largest digital currencies.
Charlie Shrem Believes Facebook’s “Libra” Will Render Ripple XRP Useless
Charlie Shrem, founder of Bitcoin Foundation, has revealed his opinion about the threat the forthcoming Facebook’s global coin named Libra could post to Ripple XRP.
Shrem opined that the social media giant intends to make companies pay 10 million dollars, in order to certify them as validators. According him, this alone is enough to render Ripple ineffective.
Read his statement below:
“Facebook is launching their global crypto coin called “Libra”. What’s interesting is they are offering companies to pay $10m to become “validators”. If anything, it renders Ripple useless. The first companies to create a LIBRA/BITCOIN exchange will make a killing!”
Kieran Kelly Disapproves Charlie Shrem’s Opinion, Says Bitcoin Would Rather Be Threatened
Kieran Kelly, a Ripple XRP-centric analyst on twitter responded to disapprove Shrem’s opinion, in defense of his choice digital asset, XRP.
Kelly averred that “Libra” would only threaten the stability of Bitcoin (BTC), since they will eventually fall in the same market. He claimed that this will make the proposed coin an unavoidable competitor of Bitcoin.
For Ripple XRP, he said its major aim is to serve as a bridging asset. He added that its utilities also make it quite functional for remittance companies and on demand liquidity for banks.
Kelly concluded that the user-base behind Facebook is enough strength to topple Bitcoin.
He said “Libra/Facebook Coin is a considerable threat to Bitcoin. XRPs main focus is as a bridging asset and on demand liquidity for banks and remittance companies. Libra sits in the same market as Bitcoin, as a direct competitor, but Facebook has a mass following unlike Bitcoin.”
Conclusively, for Facebook to embrace cryptocurrency it has once contradicted should be a welcoming idea for crypto enthusiasts. Global exposure of digital currencies lies in the hands of big names like the social media giant. Its impact could only be seen after Libra is eventually launched. Any issue raised about the proposed coin is mere speculation.