Facebook's crypto coin could be worth $19 billion in additional revenue

11 Mar, 2019
by Joeri Cant
Facebook's crypto coin could be worth $19 billion in additional revenue

According to Ross Sandler, an internet analyst for the Wall Street firm, Barclays, the introduction of the 'Facebook cryptocurrency' could generate an additional revenue of at least $19 billion for the social media giant.

Although Facebook hasn't yet officially confirmed the news on its 'Facebook Coin', it has been reported that the social media giant is indeed developing a cryptocurrency for global payments that will be tied to the value of traditional currencies and available to use on platforms such as Messenger, Whatsapp and Instagram.

The first major use case of Facebook Coin would be for users of Whatsapp, who will be able to easily transfer funds through the messaging app to friends and relatives.

Read more: 'If Facebook Coin is listed on exchanges, we're on for a helluva ride'

Ross Sandler, the internet analyst at Barclays, told CNBC that he believes that the Facebook cryptocurrency could be part of a multibillion-dollar revenue opportunity for Mark Zuckerberg's company.

Sandler forecasted as much as $19 billion in additional revenue within the next two years.

'Merely establishing this revenue stream starts to change the story for Facebook shares in our view', Sandler said.

'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 Barclays internet analyst, bases his math on the success of Google Play, which generates $6 in net revenue per user. If Facebook could see a similar revenue across its nearly 3 billion users in 2021, then its annual revenues would jump by $19 billion.

According to Sandler, a Facebook virtual currency would allow for more premium content to find its way back to Facebook, as companies re-establish themselves on the social network as a strategic partner.

'The company’s new cryptocurrency plan could potentially re-invigorate its business strategy', Sandler added. 'Something which is sorely needed at this stage of the company’s narrative.'

Read more: Facebook coin? Zuckbucks?: 10 potential names for a Facebook cryptocurrency

As Jeremy Gardner said on Twitter: '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.'

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