Facebook Coin potentially worth $19 billion in revenue, says Barclays Analyst

Social media giant, Facebook piqued the cryptocurrency industry’s interest with its native coin project. However, it might pique even more interest after Ross Sandler, an internet analyst with the British investment bank, Barclays, stated that Facebook’s Coin project could be a revenue opportunity worth a billion dollars.
According to Sandler, the Facebook Coin could be valued at a potential revenue ceiling of $19 billion by 2021. Taking a conservative approach, the revenue floor would be $3 billion, according to the analyst.
Sandler based his revenue prediction on Google Play, the Android app store which is also Google’s digital distribution service. The Barclays analyst stated that Facebook Coin will move with a “similar cadence,” on the Play Store, ringing in $6 in net “revenue,” per user.
Given this massive prediction, Facebook shares would see soaring values. Sandler said,
“Merely establishing this revenue stream starts to change the story for Facebook shares in our view.”
Facebook was embroiled in several disputes last year, resulting in its share value dropping to under $125 from a high of $217. After being attacked by users, advertisers and even politicians, Facebook seeks to diversify their operations to make sure investors stay on board. Payments, it believes, is the next frontier.
The social media giant has been looking into developing a native coin tied to the global payments network via their messaging platform, WhatsApp. Users can instantly send the coin to their contacts through a decentralized computer system. Sandler described this development as something “sorely needed at this stage of the company’s narrative.”
He added,
“Any attempt to build out revenue streams outside of advertising, especially those that don’t abuse user privacy are likely to be well-received by Facebook’s shareholders.”
The payment system would also allow the social media giant to curate more premium content in partnership with other companies, stated Sandler.
In 2010, Facebook employed a similar payments system called Facebook credits. Users could buy credits using traditional money, which could later be used for in-app purchases.
The failure of this old system was due to interchange costs, said Sandler. He stated that this reduced the business’s profitability, when the quantity of transactions was high and the valuation was low.
He added,
“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”
Facebook has already hired PayPal President David Marcus to run the company’s blockchain and cryptocurrency front. Furthermore, the Menlo Park company also acquired the team behind the blockchain startup, Chainspace to work on the coin project.
Sandler concluded that the USP of the Facebook coin project still has to be determined and it should be “above what is available today in payments.” The company also has to earn back the trust of its investors following the previous year’s mess, he said.
The post Facebook Coin potentially worth $19 billion in revenue, says Barclays Analyst appeared first on AMBCrypto.
Source: AMB Crypto

Barclays: Facebook Coin Could Bring $19 Billion Additional Revenue, and Here’s Why

CoinSpeaker
Barclays: Facebook Coin Could Bring $19 Billion Additional Revenue, and Here’s Why
One Wall Street firm sees major upside for Facebook if its secretive cryptocurrency plan works out. Facebook’s reported stablecoin project could be a significant moneymaker for the social media giant.
Barclays: Facebook Coin Could Bring $19 Billion Additional Revenue, and Here’s Why

Continue reading at Coinspeaker
Source: CoinSpeaker

Facebook’s “Crypto” Currency Expected to Add Up to $19 Billion in Revenue

According to a client note issued by Barclay’s internet analyst Ross Sandler, Facebook’s launch of its own digital currency could yield billions in additional revenue for the firm. The social network has been reportedly developing its own stable-coin, although precise details of the project remain limited.
Sandler estimates that the launch of “Facebook Coin” could add as much as $19 billion in revenue by 2021 and “change the story for Facecbook shares.”
Could Facebook’s Digital Currency be a Boon for the Social Network?
In the note issued today and originally reported by CNBC, Sandler gave both an upper and lower estimate of the opportunity presented by the launch of the new digital currency. Whilst not quite the almost $20 billion upper estimate, the internet analyst’s conservative reckoning was still an impressive $3 billion over the same two year period.
Sources reported by the New York Times claim that the social network plans to initially make its stable-coin available through its instant messaging application, WhatsApp. However, Facebook itself is yet to detail the project.
Sandler believes that the launch of a digital currency will give the company huge opportunity to grow. The Cambridge Analytica scandal last year impacted Facebook’s share price negatively. Sandler commented that the addition of an alternate revenue stream provided by offering payments is “sorely needed at this stage of the company’s narrative.”
The analyst went on to note that the inclusion of a native payment method would allow for more premium content appearing on the site. He then speculated on the nature of the eventual digital currency:
“Based on our checks, the first version of Facebook Coin may be a single purpose coin for micro-payments and domestic p2p money transfer (in-country), very similar to the original credits from 2010 and Venmo today.”
During the client note, Sandler also drew attention to the social network’s previous efforts to launch a digital currency. In 2010, the company issued its first attempt at a form of electronic cash – “Facebook credits”. The profitability of this early scheme was questionable and it was ultimately shelved, however.
Sandler notes that the current effort into the payments space by Facebook is much more grandiose than that previous. He highlighted this with mention of the team of blockchain specialists being assembled at Facebook – amongst them, David Marcus, the former president of PayPal.
However, the Barclays analyst did admit to one or two challenges looming for the social network. He noted that “Facebook coin” would need to prove itself as more useful than existing methods of payments. This, if well-executed, should help the multi-billion-dollar company inspire greater investor confidence following the issues it faced in 2018.
Finally, Sandler speculated on the future. He stated that he could see the social network “eventually” getting into remittance payments and consumer lending.
Crypto Community Divided on “Facebook Coin”
The potential launch of Facebook’s digital currency has divided the opinion of the crypto space. Some believe that it represents a major milestone for general adoption and that billions of people could be about to be turned on to crypto:

Mark my words, if Facebookcoin (or Zuckbucks) is actually listed on crypto exchanges and is made accessible to 2.5 billion people, we’re in for a helluva ride.
— Jeremy Gardner (@Disruptepreneur) February 28, 2019

Meanwhile, legend of the crypto community Andreas Antonopoulos commented at length on many of the issues with such centrally-issued digital tokens in a video he posted to Twitter:

When Facebook launches a coin, many people will use these candy-colored financial surveillance systems.
The question is, what will you use? https://t.co/qQWAtw0OF1
— Andreas M. Antonopoulos (@aantonop) March 1, 2019

 
Related Reading: Don’t Count Facebook’s Crypto Or JPM Coin Out, They Could Boost Bitcoin
Featured Images from Shutterstock.
The post Facebook’s “Crypto” Currency Expected to Add Up to $19 Billion in Revenue appeared first on NewsBTC.
Source: New feedNewsBTC.com

Ripple, Mastercard and Others Invest $1.7 Million in XRP-Based Remittance Startup SendFriend

CoinSpeaker

Ripple, Mastercard and Others Invest $1.7 Million in XRP-Based Remittance Startup SendFriend

SendFriend plans to serve overseas workers from the Philippines, using XRP and Ripple’s xRapid product for cross-border settlements. It is also going to launch in New Jersey.

Ripple, Mastercard and Others Invest $1.7 Million in XRP-Based Remittance Startup SendFriend

Continue reading at Coinspeaker
Source: CoinSpeaker

Ripple, Barclays Invest $1.7 Million in Remittance Start-Up Using XRP

While Ripple and its token XRP are changing the way cross border remittance industry works, it is also backing young start-up which shares the same vision of disrupting the payments industry. According to the latest announcement, Ripple has joined hands with Barclays and Mastercard to infuse $1.7 million funding for remittance start-up SendFriend.
SendFriend envisions to open services in New Jersey
SendFriend is a start-up founded at MIT by a group of individuals with a background of working at The World Bank and MoneyGram. The remittance start-up plans to start operations in New Jersey and envisions to open its first remittance corridor between the United States and The Philippines.
The company, which came out of Barclays‘ accelerator programme, has got into an agreement with Ripple to use XRP tokens as a liquidity vehicle for cross-border payments, allowing SendFriend to bypass the corresponding banking system and convert USD to XRP to PHP in a matter of seconds.
The other investors that have joined Ripple in this round of funding include MIT Media Labs, TechStars, Mahindra Finance, 2020 Ventures, and 8 Decimal Capital.
While the services are yet to go live, SendFriend mentions that it plans to cover the whole of the United States in short term and it plans to offer its services via desktop and mobile apps.
In its funding announcement, SendFriend claimed that it will offer 65 percent lower fees compared to the industry average for international money transfers, as blockchain “replaces the frictions and fees of the banking system.”
The start-up is in the process of hiring its team, community engagement, and marketing.
Speaking to media SendFriend’s co-founder and chief executive officer David Lighton said
“XRP is used as a liquidity vehicle for cross-border payments, enabling SendFriend to circumvent the corresponding banking system and convert USD to XRP to PHP [Philippine peso] in a matter of seconds.”
From the investors side, Yuan Ruan, founder of 8 Decimal Capital mentioned “This is a highly competitive space with longtime incumbents, but we are confident in the success of SendFriend,” “SendFriend has a good combination of an experienced team, large $650 billion remittance market, investors that provide more than just capital, and a growth strategy focused on more than revenue from transactions including APIs and white-label solutions.”
With XRP’s support, SendFriend would try capturing the Filipino population that is currently staying and working in the United States. If its able to achieve its vision, SendFriend could gain a lot of market share in the remittance industry
What is your view on SendFriend? Do let us know your views on the same.
The post Ripple, Barclays Invest $1.7 Million in Remittance Start-Up Using XRP appeared first on Coingape.
Source: CoinGape

Ripple partner and startup raises a whopping $1.7 million in funding to improve cross-border payments

SendFriend, a partner of Ripple and a startup that focuses on improving cross-border payments has received a whopping $1.7 million in funding during its first round of investment.
The next-generation remittance company focuses on the smartest way to send money to the Philippines which will help overseas Filipino workers to securely transfer USD to PHP at the lowest rate available via SendFriend. The news of the investment was published on MarketWatch and informed that the capital raised was led by companies like 8 Decimal Capital, Techstars, 2020 Ventures, Barclays, MIT Media Lab etc.
Migrants in the U.S. who send home money via traditional methods usually face problems like delayed payments, high fees and sometimes, the payment doesn’t go through. Moreover, out of $650 billion in remittance transaction occurring in the U.S., $45 billion is lost in fees.
Furthermore, MarketWatch stated:
“SendFriend will launch as the only option for OFWs to securely and reliably send money internationally with fees that are 65% lower than the industry average as it replaces the frictions and fees of the banking system with one seamless, ultra low cost experience to send money globally.”
SendFriend uses Ripple’s xRapid payment solution to facilitate cross-border payments. XRP provides the liquidity needed to make the transaction happen. xRapid transactions occur as a result of converting USD to XRP, which is then sent via exchanges, thus circumventing banks and FIs and the XRP is then converted back to PHP via the exchange in Philippines.
Earlier this year,  CEO David Lighton had said,
“We leveraged the blockchain to create an instant digital money transfer service, a full 65% cheaper than the industry’s average. SendFriend is the US’ first fully compliant international consumer payment solution built on the blockchain and we are going live in Q1.”
SendFriend was founded by people at MIT and was also accepted into Barclays Accelerator Program, powered by Techstars. Moreover, SendFriend plans to launch in New Jersey but, will soon be available to OFWs in other states via desktop and mobile as well. In addition, users can also request to get an early access version of the same.
The post Ripple partner and startup raises a whopping $1.7 million in funding to improve cross-border payments appeared first on AMBCrypto.
Source: AMB Crypto

Barclays’ Crypto Trading Desk Put ‘on Ice’ as Competition Heats Up

Barclays has reportedly put plans for a cryptocurrency trading platform on pause, according to sources familiar with the matter.
Barclays Puts Crypto Trading Project on Hold
U.K.-based multinational bank and financial services company Barclays is said to have frozen a project that would see the firm launching a cryptocurrency trading desk, two sources “familiar with the situation” claimed.
The “digital assets project” was being led by Barclays former global head of commodities Chris Tyrer, alongside head of forex and emerging markets macro strategy, Marvin Barth, technology officer Lee Braine, and digital assets consultant Matthieu Jobbe Duval. The decision to axe the project reportedly prompted Tyrer to exit his post leading the project in September. 
The quartet had been researching cryptocurrencies viability as an asset Barclays’ customers might be interested in, and to better understand what operational infrastructure would be required to support the effort.
However, it appears that the research either discovered a number of challenges Barclays wasn’t prepared to face, or found a distinct lack of interest from customers willing to explore the emerging asset class as an investment vehicle.
No specific reason was given for the decision, only that the project was put “on ice.” In recent weeks, as cryptocurrencies continue to experience declining prices, a general lack of interest from institutional investors has caused other cryptocurrency products to be folded.
However, past comments from Barclays chief executive officer Jes Staley could shed some light as to why Barclays got cold feet with a crypto trading desk. Staley worried that cryptocurrencies could be “used for activities that the bank wants to have no part of.”
Barclays was rumored to be investigating a cryptocurrency trading desk back in April of this year, in partnership with Goldman Sachs. The buzz surrounding the rumor picked up steam when Barclays created its Digital Asset Team in August.
Competition in Crypto Space Begins to Heat Up
Barclays’ potential partner on the project, Goldman Sachs, is also rumored to be working on its own cryptocurrency trading desk. Like Barclays it too has pivoted back and forth between supporting and denying the existence of such a trading desk.
Last month, rumors emerged from anonymous sources claiming that the major U.S. finance firm was ditching plans for a cryptocurrency trading desk. Yet, Goldman’s chief financial officer Marty Chavez called the report “fake news.”
Traditional finance firms like Goldman Sachs, Barclays, JPMorgan, and others, are in a race to open the first cryptocurrency trading desk geared toward institutional investors. 
Competition in the space is beginning to heat up, with New York Stock Exchange parent company Intercontinental Exchange set to take the first step by offering physically delivered Bitcoin futures via its Bakkt platform this coming November.
Featured image from Shutterstock.
The post Barclays’ Crypto Trading Desk Put ‘on Ice’ as Competition Heats Up appeared first on NewsBTC.
Source: New feedNewsBTC.com