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Cryptocurrency

Study shows a Facebook token would entice new users to crypto

May 28, 2019, 5:10PM EDT

As Facebook’s plans for the cryptocurrency world creep further into the public eye, a study from finance information site LendEDU found that a coin from Facebook would likely bring new investors to the crypto market. The company asked 1,000 Americans over a two-day period about their attitudes and activities surrounding crypto and Facebook, and found Facebook's brand would help spur adoption of its coin.

While 91% of respondents said they had not invested in big players like Ethereum, Bitcoin and Ripple, 18% said they would be interested in buying Facebook's rumored stablecoin. Another 18% said they were unsure if they’d invest, and the remaining 64% said they weren’t interested. A third of those uninterested were already crypto investors.

More than half of those who said they would consider investing in Facebook's coin attributed their trust in the firm's name as a primary reason behind their interest. This metric is particularly encouraging, and may abate concern that the company’s previous privacy scandals would stifle usage, according to LendEDU.

Facebook’s Marketplace, a community buying and selling feature on the platform, would also bolster any crypto product, according to LendEDU. Respondents indicated they’d be more likely to use the Marketplace platform with the introduction of crypto, and more than half of those who don’t currently use the Marketplace said the introduction of a Facebook coin on the platform would entice them to start. LendEDU attributed the positive response to the real-world application the Marketplace creates for crypto.

Talks of a Facebook crypto project continue to circulate, most recently with reports of a “GlobalCoin” by 2020. The company also registered an LLC in Geneva under the name “Libra Networks,” citing blockchain developments in the register.

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