Facebook has recently lost a lot of friends: between the Cambridge Analytica scandal and Zuckerberg’s perceived arrogance in his response to this and other allegations, it has felt like the social media monolith was becoming a bit of a ‘Billy No Mates’.
But Facebook still has some supporters. One of them is Morgan Creek’s Anthony Pompliano, who has stated that Facebook will eventually build the “most used product in crypto.”
He was responding to a tweet from Mike Dudas, founder of The Block, who suggested that Facebook was hiring blockchain engineers without a clearly defined role or purpose for them. Pompliano’s response was, “based on Facebook’s track record of development, scaling, and deployment, he expects that it is only a matter of time before the company will rise to dominate the cryptocurrency space.”
There have been hints that Facebook is in the process of exploring blockchain and crypto and in August there was a suggestion that it might be planning to build a cryptocurrency project on the Stellar network. Facebook denied it all, so nobody knows exactly what it is up to, but if it is hiring blockchain engineers, it must be up to something. It even hired David Marcus, a former Coinbase director, to be the head of its blockchain division.
Since Facebook has in excess of two billion followers, it is fairly certain that any blockchain project it launches has the potential to go big quite quickly, depending on what it is of course. However, some believe that Facebook is merely jumping on the Silicon Valley bandwagon and does not really have any well-defined plan for crypto.
Pompliano is more bullish about Facebook’s activities. According to him, Facebook has already proven that it has the capacity to execute the most ambitious products and deliver unmatched growth to its unrivalled user base. He said: “They have more 1B user products than any other company I believe. They out-executed everyone historically. You could go at most corporates, but Facebook ain’t it. […] Betting against David Marcus, Kevin Weil, Morgan Beller, Zuck, Chris Cox, and the FB growth team is insanity. I’ll ride with that crew any day when it comes to building, launching, and scaling products. Ask their competitors how it went last time.”
What do you think Facebook will do with blockchain and crypto, and will they dominate the crypto space as Pompliano believes?