Billionaire venture capitalist Tim Draper is one of the few people who could make Facebook likable again. Turns out Facebook crypto could be added to the impressive list of companies Draper’s backed.
Draper, whose winning bets have included bitcoin and Skype, to name a couple, plans to meet with Mark Zuckerberg’s team to explore Facebook’s plans for a $1 billion fundraising. The funds would reportedly be used to back the social media giant’s own cryptocurrency.
“I am interested to hear the story. We will see if it is a fit.”
Facebook has been an example of what not to do with privacy, a feature that is woven into the knitting of the crypto community. In fact, when crypto exchange Coinbase, of which Draper is invested, announced the controversial Neutrino acquisition, the first thing that sprung to mind was didn’t we learn anything from Facebook?
Zuckerberg must be paying attention or at least has built a blockchain-knowledgeable team around him. He’s taking a different tack with crypto, and the approach appears to be resonating with big backers. In addition to Draper, other venture capitalists, as well as hedge funds and family offices, are reportedly ready to pounce at the opportunity.
Zuckerberg’s company is eying the Whatsapp messaging service as the conduit for crypto transfers. Whether the stablecoin is pegged to the U.S. dollar or a basket of other currencies, it is expected to provide stability for remittances, with an early focus on India. It’s early days for Facebook crypto, but adding Draper to the mix could accelerate things. Surely it would put the Facebook team in front of a network of developers who have built some of the most successful blockchain startups around.
Facebook made a step in the direction of redemption when it revealed that it is making a push toward encrypted messaging . It’s part of a broader transformation that extends to online shopping and payments. The idea is to create additional revenue streams to lessen the company’s dependence on ad income, the latter of which birthed the privacy fiasco.
In media interviews, Draper comes across as a friendly guy. Not only that, but he knows a good investment when he sees one. Venture capitalism is in his blood but crypto also seems to run through his veins. So if he is willing to hear Zuckerberg out, so too should the rest of the crypto community.