Is Facebook Going to Issue its Own Token?

The past few weeks a lot rumors have been flying around about Facebook and its possible connection to launching its own digital assets; a Facebook coin. Facebook’s Mark Zuckerberg said they were “looking into” cutting out the intermediary in the log in process. Far too soon to say that Facebook is going blockchain, but… it does very much look like Facebook has the blockchain more than on the radar. 

A few months ago, Facebook published several listing job applications for blockchain specialists, stating they would be devoted to this technology. Later Bloomberg added the alleged development of Facebook’s cryptocurrency. Allegedly, as the source remained unnamed. So, even without a lot of evidence, just a hint was enough to set the community in a virtual tailspin.

Although it looks like the smokescreen is abating, we still do not have a clear picture – or perhaps better said an official statement – of what, how, who and when. But there is a lot more reason to believe that Facebook will soon launch its own cryptocurrency.

The New Your Times delved into it, and they claim Facebook had a secret crypto project for quite some time already. So secret apparently, that those employees working on it have special access cards and are under strict instructions not to discuss their work with anybody. The NYT claims there are 50 people working on the project.

It is expected that the Facebook coin will be specifically tied to WhatsApp, messenger and Instagram, all owned by Facebook. By its sheer reach, this would potentially give access to the 2.7 Billion users who use those platforms every single day. One of the anonymous sources went on by claiming that the digital coin is going to be a stablecoin, backed up not by one, but by three fiat currencies. Facebook being an American company a pegging to the US dollar seems likely.

By countering the adverse effects of price volatility, this would definitely make it a cryptocurrency for global payments. It is even speculated that a pilot would start in India; needless to say, a huge market in numbers but also in the demand for peer to peer payments.

Although nothing set in stone, and yet to be revealed, it is a pretty safe assumption that the Facebook coin is in the making virtual certainty.

From Peanuts to Eggs

We all know the expression “pay peanuts, get monkeys”. We use it to emphasize that quality comes at a cost. Much as we like to think that having to pay the true value for something can be avoided, as with so many other things, nothing is for free. Yes of course it is wise and great that you can save money on advisers and specialists, but what are you actually getting? Apart from that, is being “cheap” not sometimes counter-productive?

In the blockchain and crypto world however it still seems to be a common practice. Experts, advisers and Board member are more often than not being paid millions and millions…… of tokens that are yet to be mined, waiting to be issued, even further waited to be listed, not even close to being traded, let alone to have developed value. And after having jumped through all those hoops successfully, the vesting period kicks in. But on the other hand, the necessary work has to commence more or less immediately.

But not only work, something else and much more valuable is at stake: reputation. Quite often we are being asked as advisor or expert precisely because we have an excellent track record in a specific field, a stellar reputation in the industry, or access to a much-needed network. All extremely valuable and important qualities, and qualities that did not come overnight but as a result of long and hard work. Any advisor who values his reputation – and in some ICO advisor cases actually has a reputation – would be very, very careful when his or her reputation is on the line. Not being adequately compensated for hours spend is one thing, being robbed from one’s reputation is a totally different matter.

There is a reason they are experts, and a reason they ask adequate compensation for their time, expertise, network, and added value. Perhaps you need to put yourself – as a start-up founder – in the shoes of the expert. Would you go the extra mile for something you have little or no control over? Would you possibly gamble that away? So, rather than focusing on peanuts, lets focus on eggs and go with the: “you need to break an egg in order to make an omelet” ….