Facebook Denies Partnership with Stellar

Social media Facebook denied that its blockchain task force is launching a cryptocurrency project in partnership with Stellar blockchain. Recently the company said that it wouldn’t partner with the crypto firm Stellar, despite a report that the two companies recently held talks.

“We are not engaged in any discussions with Stellar, and we are not considering building on their technology,” a Facebook spokesperson told Cheddar.

The statement came after Business Insider reported that Facebook had discussed to create its variant of the Stellar blockchain network. The cryptocurrency asset is called Lumens and is one of the most valuable crypto projects with a market cap of about $4.3 billion. After the Business Insider report, the price of Lumens spiked by roughly 10 percent on Binance, the world’s largest crypto exchange.

Soon after, Facebook’s crypto division led by David Marcus, decided to resign from his post on the board of directors at cryptocurrency exchange giant Coinbase, citing the appearance of a conflict of interest.

“Because of the new group I’m setting up at Facebook around blockchain, I’ve decided it was appropriate for me to resign from the Coinbase board. I’ve been thoroughly impressed by the talent and execution the team has demonstrated during my tenure, and I wish the team all the success it deserves going forward.”

Consequently, a Facebook representant declared that the company still have to release information about which plans the Facebook blockchain task have regarding this new technology.

“We are still in the very early stages and we are considering a number of different applications for the blockchain. But we don’t have anything else to share at this time.” a company spokesperson told TechCrunch.

Nica Tudor

Blockchain, Smart Contracts, and cryptocurrencies enthusiast.

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