Facebook Reportedly Courting VCs to Invest up to $1 Billion in New Cryptocurrency


Last February, the New York Times reported that Facebook’s (FB) cryptocurrency development is far enough along that it was already holding conversations with exchanges about “selling [the coin] to consumers.” According to four individuals familiar with the matter, Facebook told the exchanges that it is hoping to release the crypto product in the first half of the year, indicating that the stablecoin could very well be available in the next few months.

Now, the New York Times’ Nathaniel Popper has followed up on the story via a tweet thread, indicating that Facebook is currently courting venture capital firms to begin dumping large sums of capital into the new cryptocurrency. Popper notes that the current ask ranges as high as $1 billion.

“One person I spoke with said that Facebook is talking about using the money as collateral for its cryptocurrency,” added Popper. “Facebook has been designing the coin to keep a stable value, pegged to a basket of foreign currencies held in bank accounts.”

This secondary market capital raise provides an interesting insight into Facebook’s current crypto strategy, as the external capital provides at least some element of decentralization, which is a much-needed strategy for the company that is currently struggling with user privacy and control.

There is no indication as to which VC firms are currently in negotiations, however, the list would likely include Andreessen Horowitz’s dedicated crypto fund, which has previously invested in several startups via direct token purchases.

More: Nathaniel Popper’s Tweet Thread

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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