• November 23, 2020

Facebook rumors to acquire crypto startup – Chainspace

Facebook rumors to acquire crypto startup – Chainspace

Social media giant Facebook has reportedly acquired a London based crypto startup called Chainspace. Thus expanding its blockchain division and research on cryptocurrency.

With the recent surge in blockchain startups, multimillionaire companies have also shown their interest in exploring blockchain tech. The acquisition of this crypto startup its clear indication that, Facebook is planning to launch their crypto products.

Reportedly Chainspace is founded by a group of researchers from University College London. Also per the paper published by the team in the August 2018, ‘ distributed ledger platform for high-integrity and transparent processing of transactions within a decentralized system ‘

Primarily the idea behind this paper resembles with other prominent financial group which aims to improve transaction speeds over existing platforms.

With said that all, the Facebook has declined the rumors of acquisition but the report claims that, four of the five researchers who wrote the whitepaper for Chainspace were joining Facebook’s blockchain group. Also, the company recently commented that

Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don’t have anything further to share

Furthermore,  Chainspace was in the process of raising an initial round of funding of less than $4 million according to Cheddar. But Facebook was in Chainspace within the process of raising an initial round of funding of less than $4 million according to Cheddar.

It’s notable to mention that,  its own division currently employs around 40 people and it is likely to expand again this year. 

Also, Facebook is already exploring its own cryptocurrency which would be used for remittances on its WhatsApp messenger platform in select markets initially. The new crypto is likely to be a dollar pegged stablecoin to compete with Tether

Whether or not Facebook acquires this startup it is only a matter of time before the world’s largest social network launches its own digital money and joins the ever-growing crypto industry.

What are your thoughts in this? Let us know in comment section below.

Finance

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