Facebook’s Crypto Could Generate Billions: Barclays’ Analyst
Facebook’s cryptocurrency has the potential to generate $19 billion in additional revenue, if it’s launched, according to a CNBC report published on March 11.
Ross Sandler, internet analyst of Barclays conveyed in a client note that a cryptocurrency could establish a new revenue stream for Facebook, improving its share price that slumped due to high-profile scandals last year.
Facebook Crypto Could Give A Positive Spin
Sandler indicated that the crypto-based revenue alternative is something “sorely needed at this stage of the company’s narrative,” emphasizing that any advertising-free revenue streams are well-perceived by Facebook’s shareholders. Sandler gave $3 billion figure as the revenue estimate of Facebook’s new coin.
The Barclays’ analyst also brought up Facebook’s initial payment project that had similarities with cryptocurrencies. “Facebook credits,” developed by California-based company, The Menlo Park in 2010. The project represented a virtual currency that enabled users to pre-pay the credits with the help of domestic currencies and then utilize them for in-app purchases.
Further, he said that Facebook will endure the main interchange expenses between fiat currencies and its possible new cryptocurrency, which could turn into the profit from the business.
As far as the scope of the project is concerned, Sandler noted that it is larger than the previous ventures of Facebook. He also highlighted that Facebook has brought on board a number of employees from blockchain startup Chainspace.