Venture capitalist and founder of Draper Associates, Tim Draper, is reportedly meeting with Facebook executives to discuss the social media giant’s interest in creating its own cryptocurrency – Facebook Coin. According to a Bloomberg report, Draper affirmed that he is interested in hearing the story around the project and will wait to “see if it is a fit”.
Tim Draper interesting in ‘hearing the story’ behind facebook coin
Facebook are reportedly seeking to raise $1 billion in venture capital to fund the Facebook Coin project. Other interested parties are also looking to invest. According to New York Times (NYT) reporter, Nathaniel Popper, who tweeted that Facebook will use the money as collateral for its cryptocurrency, there is not enough information as yet for a complete piece in the NYT.
Facebook Coin would apparently be a stablecoin pegged to the US dollar meaning it would be less volatile than Bitcoin making it much easier for people to accept it.
Last month, Barclays internet analyst Ross Sandler said that a Facebook cryptocurrency could be part of a multibillion-dollar revenue opportunity and forecasted as much as much as $19 billion in added revenue by 2021.
“Merely establishing this revenue stream starts to change the story for Facebook shares in our view,” Sandler said.
Jamie Dimon At “Acceptance” Stage With Bitcoin Claims Draper
Draper is well known for his bullish stance on Bitcoin, and was one of the first venture capitalists to see the potential and invest in the technology. He famously bought 29,656 Bitcoin from the US Marshall Service in 2014 after the FBI shut down the black market drug site, the Silk Road. His shrewd investment of $18 million is now worth over $100 million.
On the other hand, Jamie Dimon, Chairman and CEO of JPMorgan Chase, is famously anti-Bitcoin. Draper blasted him after the recent release of JPM Coin. In an interview with Wendy O on her YouTube channel, Draper said: “First he says that bitcoin is a scam. Then he gets all paranoid, then he lines up all the banks against it. Then he says credit cards, my credit cards cannot be used to buy Bitcoin and then he decides he’s going to do his own coin”. He added that this was “ridiculous” and “typical”.
He compared Dimon’s attitude to the seven stages of grief, first there is denial, with the final stage being acceptance. Draper claims Dimon is now at acceptance.