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Facebook has come into the crypto limelight this year with the initial soft whispers that the social media giant is going to launch its own cryptocurrency. Now, as these whispers are beginning to materialize more and more, the Royal Bank of Canada (RBC) is relating to Facebook’s crypto project as “one of the most important initiatives” in the company’s history.
RBC Capital Markets recently rated Facebook’s share as an outperformer stock and gave it a target price of $250 a share. RBC also said that the social media giant has ‘crypto opportunity’ and told investors that the firm will touch new highs in the future with the upcoming cryptocurrency announcement.
RBC analysts Mark Mahaney and Zachary Schwartzman stated in a note to investors:
“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.”
Facebook launching its own cryptocurrency is one of the top news in both the technology and financial sectors as the company is one of the largest social networking sites which has more than 2.3 billion monthly active users as of December 2018.
In the note sent to investors, RBC also said that Facebook rolling out its own cryptocurrency (or token) will be one of the biggest steps ever for the internet company, and it could boost crypto adoption significantly. The investment bank believes that Facebook will release a whitepaper on June 18 in order to explain the company’s long-term strategy for the highly-anticipated cryptocurrency.
Many of Faceook’s crypto-related decisions were noticed this month, for instance that Facebook’s employees will take their salary in the form of the new digital currency. The company is additionally planning physical ATM-like machines from which users can buy the cryptocurrency. Facebook has also talked about utilizing a blockchain-based log for its operations.
An Analysis Will Follow the Whitepaper of Facebook’s Cryptocurrency
RBC asserted that it plans to release an analysis of the whitepaper whenever it’s released, “to help investors analyze the underlying crypto economics of the token.” Mahaney and Schwartzman also added that they “believe Facebook will use crypto to facilitate a platform for 1) Payments; 2) Commerce; and 3) Applications & Gaming.”
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.
Previously, when it came to establishing a connection between Facebook and cryptocurrency, it was all about policies regarding the publication of cryptocurrency advertisements on the platform. Now, evidently, we’re at a completely different crypto terrain.