Facebook will reportedly announce cryptocurrency white paper this month, RBC says
Previously, when it comes to establishing the connection between Facebook and cryptocurrency, it was all about policies regarding the publication of the advertisements. However, Facebook has recently come into the limelight as RBC said that Facebook will soon launch their own cryptocurrency or token which might be ‘one of the most important initiatives’ in history of Facebook and cryptocurrency. Royal Bank of Canada Capital markets recently rated the Facebook as outperformer stock and gave the target of $250 a share. RBC Capital markets also said that the social media giant has ‘crypto opportunity’ and told the investors that the firm will touch new highs in the future with the upcoming cryptocurrency announcement.
“We believe this may prove to be one of the most important initiatives in the history of the company to unlock new engagement and revenue streams,” RBC analysts Mark Mahaney and Zachary Schwartzman said in a note Thursday evening.
Facebook launching their own cryptocurrency is one of the top news itself as it is one of the largest social media giants which had more than 2.3 billion monthly active users as of December 2018.
In a note presented to investors, RBC capital markets said that Facebook launching their cryptocurrency or token will be one of the giant steps for the firm and boost the crypto adoption significantly. The investment bank believes that Facebook will release a white paper on June 18 to explain the company’s long-term strategy for the cryptocurrency, or “token.” Company’s crypto payment related announcement was noticed earlier this month and reported by CNBC on June 6th according to which Facebook employees will take their salary in the form of the new currency. The company is planning physical ATM-like machines where users can buy the currency, the report says. Facebook has also talked about utilizing the blockchain based log in the facility before.
RBC said it plans to give an analysis of the paper when it’s released, “to help investors analyze the underlying crypto economics of the token.”
“We believe Facebook will use crypto to facilitate a platform for 1) Payments; 2) Commerce; and 3) Applications & Gaming,” Mahaney and Schwartzman said.
On June 14th, 2019, Facebook’s stock was trading at $181.33 which is up more than 35% this year. RBC has maintained an outperform rating on Facebook with a price target of $250 a share.