Lots going on here with Facebook and Coinbase, with the rumor suggesting that Facebook could be acquiring Coinbase.

I want to discuss if I believe if that's true and if that could be incredibly bullish for the crypto market or on the contrary doesn't actually mean much at all the the overall crypto price.

What does that mean, what effect will it have on the crypto market, and my personal take on what this could mean if Facebook did acquire Coinbase .

First lets get this topic out of the way, it has been the talk of the town, I've seen it all over social media, that Facebook has lifted its ban on paid crypto advertising. They have officially announced that they have decided to allow certain ads promoting cryptocurrency related content for preapproved advertisers, but they will continue to ban ads on all ICO’s (Initial Coin Offering) and binary options. Facebook also said they would monitor the policy and revised as needed.

That's being the first big news, but now what I'm starting to hear a lot of noise over the past 24 - 48 hours is that the rumor that Facebook is looking to acquire Coinbase exchange.

Let's go into this discussion with the sentiment that it is happening, just for a hypothetical conversation that Facebook is planning to acquire Coinbase.

The sentiments that I'm seeing all over social media is "Get ready because Bitcoin and Crypto are going to go to the MOON" and "Facebook is buying Coinbase and the BULLS are back"

I don't necessarily think so and here's why !!

A company like Facebook, the largest internet company in the world in terms of market cap and user base. Think to yourself why would they be acquiring a top cryptocurrency exchange right now. If you remember just a few weeks ago Facebook did have a pretty tumultuous time with their privacy leak and going on trial .

Their stock took a plunge, the NASDAQ listing for Facebook just tanked. Facebook stock price went off a cliff, it went from $195USD all the way down to the bottom $149USD, a drop of over 23%, that's an exponential plunge.

Since then it has recovered quite a bit, my point being the reason that a company like Facebook would be acquiring Coinbase is because they want to increase their companies value for shareholders.

Big publicly traded companies, all they care about is producing value for their shareholders getting their earnings report higher, getting their bottom line higher, the better that is the more intrinsic value that there's stock actually has.

The notion that Facebook acquiring Coinbase would send altcoins right to the moon has no merit.

I cannot see that Facebook is going to shill cryptocurrency, encouraging its users into buying and selling of an essentially wild west currency. Where there is hacks, major vulnerabilities, knowing its users do not know much about the crypto space, or how to protect their assets and are incredibly vulnerable to a lot of exploits and malicious activity.

It would be a systemic risk to their entire company, to shill cryptocurrency to Mary Sue and John Boy while having in a good time on facebook liking their besties posts of their latest holiday pics. Then Facebook is like, here Mary Sue and John Boy, why don't you buy some crypto and leave it in this wallet on your account.

Then their account gets hacked and they lose all their crypto..

Facebook can't have Mary Sue or John Boy lose crypto to a hack because they told them it was all right to go by some cryptocurrency and leave it on a wallet that they provide. Because that is a huge systemic risk to their entire company.

Then we also have to look at what would happen if Facebook buys Coinbase and did encourage their userbase to start to buying crypto and leaving it in their wallets, presuming that their wallets would be connected to Facebook account and things start to head south?

Users starting losing money, life savings could be wiped out, lives possibly turned upside down. The viral effect across all social media platforms would be catastrophic. Facebook simply can't afford to have a bloodbath on their hands.

The value for the shareholders would drop off of the cliff because now there are fundamental problems with the company, that there are vulnerabilities and they're putting their users at risk.

In my opinion, the risks to reward is just not there.

But now let me explain, if they do acquire Coinbase, you would you more then probally wouldnt be aware of it if the news didn't break. Chances are nothing really would change, the logo would remain the same, everything would stay the same, exactly how it is now.

No Facebook integration, no Facebook logo on Coinbase website, no Coinbase logos on Facebook website

It would purely be an acquisition to raise their bottom line and profitability to provide more value for shareholders because at the end of the day it's all about raising Facebooks stock price. Keeping the earnings reports on the up and up, making this a very valuable stock for investors to have.

If Facebook does acquire Coinbase it is far more bullish for the Facebook stock then it is for cryptocurrencies.

They're not really going to do anything that would encourage Facebook users to buy crypto, that's a huge huge systemic risk to the number one internet company in the world, it could be company suicide.

Essentially it would just be an acquisition that would be to raise their bottom line in my opinion to provide some pop in their stock and that's really all it is.

My take on it also is, if Facebook does acquire Coinbase, they could very well introduce their own coin as a payment option to its advertisers. With Coinbase already acquiring Paradex which has its own token Ox (ZRC) already up and running making it extremely easy for fast-track adoption for Facebook to introduce.

However with all that being said, I do believe that something is in the pipeline happening with Facebook and Coinbase. Lets look at the timeline over the past 6 months.

DEC 12, 2017

Coinbase announced it has appointed Facebook executive David Marcus to its board of directors. Commenting on his appointment, Marcus stated he had been “fascinated” by cryptocurrency for five years. “I’m convinced that what the company is working on has the potential to materially change the lives of people around the world, and I’m looking forward to working with Coinbase and its leadership team to help make this vision a reality”

30 Jan 2018

Facebook announced a ban on advertisements for all Cryptocurrency ICO's Initial coin offerings and binary options.

8 May 2018

Big changes at Facebook representing the biggest executive shuffle they have had on the companies fifteen-year history, David Marcus who ran messenger is now working on blockchain within the company, this is part of the new effort and unit dedicated to the technology.

May 23, 2018

Coinbase acquires trading platform Paradex in its latest move to dominate the crypto economy. Paradex is the largest U.S. cryptocurrency trading service, that lets customers trade all sorts of digital tokens on a decentralized exchange.

June 6, 2018

Leading US cryptocurrency trading platform Coinbase initiated the process to become a fully regulated broker dealer by the US Securities and Exchange Commission (SEC).

June 27, 2018

Facebook announce the lift of the ban of cryptocurrency advertising to approved advertisers.

Will Facebook acquire Coinbase, at this stage it's just a rumor.

Will they, won't they, who knows, but I am sure we haven't heard the end of this.

Let me know your thoughts by leaving a comment below

Cheers
DeDe Cryptonaire
Lets Get That Crypto

DISCLAIMER: This is NOT financial advice. This is just my opinions. I am not responsible for any investment decisions that you choose to make.