Tim Draper, the billionaire venture capitalist, has some ambitions. Billionaire Tim Draper fixing Facebook incoming? Well, his plans for Facebook Crypto might be!
Draper has had some winning bets including Skype and Bitcoin. He plans on meeting with Mark Zuckerberg’s team to flesh out the plan that Facebook has for its $1 billion fundraising. The funds will be used to back the social media giant’s cryptocurrency.
Crypto and Facebook are to vastly different things with vastly different ideas. Facebook is the face of what not to do with privacy, whereas cryptocurrency’s identity is woven around the principle of privacy. When Coinbase announced the Neutrino acquisition, the first thing that came to the minds of many was “didn’t we learn anything from Facebook?”
Zuckerberg must’ve been paying attention to the intense criticism being leveled against him and his company – he’s taken a completely different route with crypto and the approach is resonating with backers. Draper, along with other venture capitalists, hedge funds, and families, are reportedly anxious to pounce at this new opportunity.
Facebook is eyeing the WhatsApp messaging service as the launching pad for crypto transfers. Whether the stablecoin is pegged to the US dollar or a slew of other currencies, it is expected to provide stability for payment remittance, with an early focus on India. Alas, it is but the early days for Facebook Crypto, but Draper could be the catalyst and the accelerant.
Facebook has started to march in the direction of redemption when it revealed that it was pushing for more encrypted messaging. This is the initial volley of a broader transformation that will extend to online shopping and payments. This is smart, since this creates additional revenue streams and lessens the company’s dependence on ad income, the latter of which birthed the privacy fiasco that Facebook continues to be embroiled by.
Draper knows a good investment when he sees one. After all, venture capitalism is his bread and butter. Crypto could also be coursing through his veins. If he’s willing to sit down with Facebook, we should notice and watch what happens.
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