According to the WSJ author, Libra owners may suffer losses in the future!
According to U.Today’s news, in a recent article in the Wall Street Journal (WSJ), James Mackintosh, a senior columnist on markets, shared his views on Facebook about crypto money. According to Mackintosh, the social media giant has obviously obtained a printing money license. Following the release of the whitepaper of Facebook’s crypto money project, regulators and politicians around the world expressed concern about this step of the social media giant. The Facebook founder also explained why this project could be dangerous for the global financial system.
An Attractive Investment Opportunity
We have recently shared with you that Facebook has collaborated with major companies such as Mastercard, PayPal, Visa and Uber for the crypto money project. On June 18, Facebook finally shared the whitepaper for its big project.
Mackintosh said that the $ 10 million fee paid by these companies to join the Libra Community would bring companies at least 40% of their profits.
On the other hand, according to the author, when Libra became an important currency for Facebook’s 2.4 billion users, companies that have been collaborating from the beginning will benefit from the return on tens of billion reserves. Moreover, even if this new crypto currency does not reach an adequate level of acceptance, collaborative companies will surely find a way to make a profit.
Libra Owners Will Pay A Price
According to experts, since Libra will be launched as a stablecoin, it will be an alternative to crypto currencies such as Bitcoin, Ethereum and Ripple, which are quite active in terms of price.
However, if the assets supporting the Libra fall, it may cause the Libra to fall. Since the reserves that support Libra will not be capital insurance, the Libra owners will be the losing party. Therefore, according to Mackintosh, the damage suffered by Libra does not affect the companies behind the project, but it can affect the ordinary people who buy Libra to a great extent.
Ethereum Co-Founder’s Facebook Libra Review:
According to an article by Quartz, a technology-oriented news source on June 21, Joseph Lubin, one of the founding partners of Ethereum (ETH), has harshly criticized the recently talked about crypto currency Libra. As it is known, Facebook published a whitepaper of its own crypto currency called Libra on June 18 and received quite complex reactions from the market.
He was one of the harsh critics of the Lubin de Libra. Facebook emphasized in its whitepaper that sending money worldwide should be as easy and cost-effective as sending a message from your phone.
Lubin emphasized this idea that people should first trust Facebook’s nominal money support and then Libra stablecoin-backed government bonds.
In spite of all these, the project also saw good things, the famous name, within a few years could be two billion Libra users and this is incredibly important for crypto currency user experience, so that the mainstream audience can get used to the use of crypto money, he added. Lubin added that ConsenSys has already reviewed the Libra code and that the project borrows several ideas from Ethereum.