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Facebook Denies any Cryptocurrency Launch Plans

Facebook, the mega-social-media enterprise, has rejected any comments and reports that its blockchain division was looking into the possible launch of a new cryptocurrency through its collaboration with Stellar. According to news reports, a representative of Facebook has stated that it will not be developing a new coin on Stellar’s platform nor has the cryptocurrency team discussed anything related to splitting from Stellar and creating its own blockchain.

Rumors

During the last week, reports from unidentified sources involved in the current matter stated that Facebook’s cryptocurrency department, directed by David Marcus, was looking into Stellar’s blockchain as a foundation for its shady blockchain plans which have yet to be announced. Additionally, earlier reports have also suggested that Facebook may possibly launch its own coin.

Should any of these claims be remotely true, it would not mark the first incident in which Stellar has aided a company in forking. Messenger app Kik has launched its own coin, KIN, which functions of a deviation of Stellar’s blockchain. Following the recent events, David Marcus was revealed to have stepped down from his former position as a board director at Coinbase, one of the top leading digital currency exchange platforms, and stating that it was to avoid a conflict of interest with his new appointment.

According to Davis, his decision came as a result of the new blockchain division he was preparing at Facebook, deciding that now was the right time to resign from the board. Adding to his statement, he was highly impressed by the display of talent and expertise from his team at Coinbase and continued to wish them luck.

Facebook then revealed that Marcus would lead the blockchain team at the social media giant earlier this year, indicating that Facebook may be setting itself up to announce the plans for the new team seeing as barely any information has been revealed during the last five months. Should Facebook actually be planning something with Stellar, nothing so far has been revealed.

Another statement by a Facebook spokesman stated that the company was still in its infantile stages are several use-cases for the blockchain have been taken into consideration. Stellar’s own coin, the XLM, has not seen any negative effect after announcements that Facebook will not be constructing anything on Stellar’s blockchain.

1 year ago

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