Facebook announced their Libra Cryptocurrency but there are two coins being “minted”.

Libra coin has 2 very distinct and separate uses, it is in fact two separate coins. While one coin will be used for mass adoption for the unbanked approx. 2 billion people globally the second is aimed directly at the institutional and accredited investors.

Facebook newly announced cryptocurrency reeks with everything that Facebook is, or has become, it is lack of innovation and lack of foresight backed by Billionaires who have no connection with real world issues.

Facebook Libra Coin

The humanitarian Libra coin which Facebook will tout and be applauded for is nothing new, cryptocurrencies are being used in countries like Venezuela and in developing countries in Africa. Furthermore, Facebook has more to gain by delivering a global crypto currency and digital central bank.

To look at their lack of innovation since 2014, one could argue, that this is just another great way for Facebook to track, monitor and grow their business. Let us be aware of the many concerns about privacy, hacking and tracking that are looming over Facebook in many countries including their issues with 2016 US Election advertising scandals thanks to Russia.  Mr. Zuckerberg sat in the Congressional hearing like a kid who had stolen a car, but, had no idea how it worked.

Their head long jump into global cryptocurrency domination is naive at best. It will generate a mass adoption in cryptocurrencies, but will have so many issues on roll out it will take 2 – 3 years for it to really become a purchase vehicle.

The hype surrounding the crypto currency and the simultaneous order by the SEC that US citizens cannot hole alt coins after September is really a worrying scenario for true cryptocurrency evangelists and early adopters.

Bitcoin, will stay in and slowly grow, it is after all the Granddaddy of all crypto currencies, and Ethereum will become the true innovator of the landscape delivering the real crypto landscape to the enthusiasts and developers. Facebook, however, will be the behemoth that will create nothing new and keep many in ignorance of real developments in the blockchain and crypto universe.

The social network recruited the founding members of the Libra Association, a not-for-profit which oversees the development of the token, the reserve of real-world assets that gives it value, and the governance rules of the blockchain. “If we were controlling it, very few people would want to jump on and make it theirs” says Marcus.

Each founding member paid a minimum of $10 million to join and optionally become a validator node operator (more on that later), gain one vote in the Libra Association council, and be entitled to a share (proportionate to their investment) of the dividends from interest earned on the Libra reserve users pay fiat currency into to receive Libra.

Libra Investment Token for Accredited Investors

Facebook has a second coin the “Libra Investment Token”, their real reason for the cryptocurrency entrance. This coin will only be available to Accredited Investors and Institutional investors to be used as investment in more companies and enterprises that Facebook will slap its logo on.

If the masses are not able to use the coin then really its not a cryptocurrency at all and Mark Zukerberg and his team of billionaire VCs have not understood anything about crypto currency.

One Central Global Crypto currency, just this term should be like nails on a chalk board to any decentralized digital ledger convert.

We will see the crypto landscape become exactly what we railed against, a centralized, elitist currency that will control the worlds entire cryptocurrency value.

I am all for cryptocurrencies but I do believe if we refer to the idealism of non-governance and non-centralized systems, we should be holding our heads down now at the death of a dream.

Facebook, last year banned blockchain advertising along with ICOs, as did Google and now they are launching an assault, on many blockchain and crypto projects, while the SEC cower to the might FB Coin.

If my dreams can come true, this will fall along side the much hyped and yet to be delivered EOS platform and people who actually do not get their news from Facebook will standfast.

This will not happen and Facebook will become the controlling crypto currencies and we will all be forced in some way or another to adopt this coin. I could quote revelations in the Bible, but this mark of the beast is not real evil its just not good for people as a whole.

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In 2017 the world learned about initial coin offerings (ICO) as the start-ups began raising capital in a new and innovative way. In 2017 and 2018 more than $14 billion as invested through ICOs in Blockchain companies as investors were eager to cash in on the crypto craze. The companies too held this as a new, less complicated and expensive way to raise capitals.

Since 2018 the ICO market has gone all but bust, but the legacy of the new crowdfunded investing model will become a mainstay for many companies who will enter into legitimate raises in the future.  More start-ups will look to tokenize real assets and leverage the power of the crowd to finance their next project. The new regulation put in place by the U.S. Securities and Exchange Commission (SEC), has deemed all crypto assets except Ethereum and Bitcoin as securities for all projects seeking exposure in the U.S. Market.

The SEC has stated that it does not differentiate between so0called utility tokens and security tokens. All token offerings must comply with federal securities laws. Hence, the new investing vehicle the Security Token Offering (STO).

10 Reason why the STO will change then investment ecosystem

High-quality, compliant cryptocurrencies are a sought after commodity. Early STO investors will become a new breed of investors. As with early bitcoin and crypto investors they will have most to gain.

1. STO Credibility

   STOs that follow federal guidelines and are approved by the SEC will become instantly credible. Furthermore, this will take more of the grunt work investors will face in evaluating the projects or the companies.

2. Legitimizing crypto investing

   Increased regulation and credibility will help to end much of the stigma around cryptocurrencies among traditional investors. STO investors are banking on more than just institutional investors and look beyond bitcoin futures and custodial services.

3. Micro-investments

   The main attraction of ICOs was the low barrier to entry relative to other capital markets. STOs could take micro-investing mainstream and allow more people to participate and invest in Start-Up ventures that were previously restricted to institutional, VCs and Accredited investors.

4. Crypto as a Security

   Platforms like tZero will become more popular and familiar and help deliver new regulated STOs for trading. This will mean cryptocurrencies will be traded lie a security, giving STO investors ownership, voting and asset allocation rights. This could mean STOs being included in tax-free savings and retirement accounts.

5. Ownership of Security

   Whereas the “utility tokens” were delivered as future access to a product or service, a security token represents actual ownership of and underlying asset. If you invest in a real estate STO, you will actually hold shares in a physical property rather than an IOU for a future date.

6. Programmable Ownership and Compliance

   Security Tokens are programmable by nature, this ensure compliance protocols can be embedded into actual assets and amended over time. ICOs did not have this level of sophistication

7. High Success Rate

   Most of the ICOs have gone bust or are in the process of going out of business. The early track record for STOs has been extremely positive. STOs currently have a 99% success rate. ICOs were merely pipe dreams based on white papers. STOs have something real to offer investors.

8. Low Fees for STO Investors

   Blockchain technology reduced the need of expensive middle-men and those savings will be passed on to STO investors. The emergence of the low-fee investing will serve to strengthen the STO model with its programmable compliance and ownership features.

9. Decentralized assets remain decentralized

   As the SEC has already noted, regulation impacting security token offerings have no bearing on assets that are “sufficiently decentralized”, such as Bitcoin and Ethereum. The truth is decentralized money is here to stay and more confidence in in cryptocurrency investing will become the norm among investors of all kinds.

10. Increases Innovation

    A regulated investment ecosystem for tokenization will open the door for greater adoption and, ultimately, new innovations in the Blockchain arena. A more innovative environment means more investment opportunities and increased returns for STO investors. This trend is already underway as more start ups and institutions continue to utilize and develop more decentralized ledgers.

The Security Token Offering Investor Outlook

The days of the ICO are gone, but STOs are an offshoot of the ICO just a more regulated compliant and better investment alternative.  The new paradigm will affect every industry and from standard issuance of stocks and bonds to smaller assets like business shares and real estate.

There is a lot for the STO investor to be bullish about in the future. Security Token Offerings will become more accepted and adapted. Blockchain projects are in their infancy and with companies like Facebook launching their cryptocurrency now is the time for serious investors to look at STO.

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