Facebook is said to be in the process of creating its own digital coin called the Facebook coin.
The tech giant is in talks with various cryptocurrency exchanges to list a Facebook Coin, which will be directly related to its messenger services, while it was reported that the coin will belong to the stablecoin sector, of which the coin is pegged to a basket of traditional currencies, like the U.S. dollar and Euro.
The digital coin would probably be used by other networks that are under Facebook’s ownership like Instagram or WhatsApp as they aim to use all 2.7 billion users under all its applications, as a clientele list.
This could be extremely useful for Facebook users as it could enable them to come in contact with innovative technology services like blockchain and also boost their payment options and business operations.
We must note that, Facebook could be following the steps of WeChat a Chinese multi-purpose messaging, social media and mobile payment app developed by Tennent.
WeChat has been able to grow significantly in its field and various important figures in the financial world have recognized WeChat as one of the few potential competitors to Visa, MasterCard and American Express.
If Facebook manages to set crypto asset payments aligned with its applications it could instantly make Facebook one of the most important payments companies in the world.
Second largest cryptocurrency Ethereum
Major digital coin and second largest cryptocurrency Ethereum, has undergone important software upgrades during last week’s Ethereum hard fork.
A Fork is a change of protocol which allows the network to add new features to a blockchain, but also to avoid the negative effects of cyber-attacks or harmful bugs.
Ethereum is improving its network to reduce the costs and simplify user’s interaction on its blockchain.
Ethereum’s updated network has undergone two forks that have brought out a new improved version of its blockchain software that could potentially save miner’s time and resources, when engaging in activities.
Traders and analysts found the event worrisome as they compared the event to the similar fork in bitcoin in 2017 which led to major instabilities across cryptocurrency markets.
During the bitcoin fork, Bitcoin Cash was created, after users stubbornly continued to use the older code and developers were left with no option as to keep the old version running.
However, Ethereum developers have agreed to discard the previous version leaving slim chancesintroducing a rival coin, due to the pre-fork software quickly being discontinued.
Adding to that, some positive outcome was brought forward upon the update of the Ethereum network.
In 2017, Parity, a blockchain project had lost access to 500,000 Ethereum worth over $50 million currently.
Now, with the latest Ethereum upgrade it seems they are closer to accessing these coins but not quite there yet.
Parity developers have stated in order to regain full access to the lost coins it would be required to enforce another hard fork.
The net worth exceeding over 50M USD could be a strong enough reason for setting the ground for another update on Ethereum network.
Ripple come across strong adversity
On other news, very recently Forbes released an article questioning Ripple and its associated XRP asset reliability, which has pushed prices down for the major coin.
Furthermore, markets expected more from XRP when Coin base announced on the February 28th that Coinbase, as well as the exchange’s Android and iOS applications, would also offer the digital asset.
Ripple has come across strong adversity in the past month, so Forbes has seemingly touched a sensitive cord for the XRP which does raise some concern for the coin.
Dealing with Crypto ownership
As a conclusion, developments in the accounting and auditing sector give new insights on how firms can deal with Crypto ownership.
Ernst & Young, one of the largest auditing and professional services providers globally, introduced its EY Crypto-Asset Accounting and Tax tool for accounting and tax calculations for crypto trades.
The tool is aimed for institutional clients that include cryptocurrency transactions on their financial statements and institutional or individual clients who trade digital assets on a smaller scale.
Analysts could consider this as a step further towards the legitimization of crypto market by overcoming audit hurdles presented in the financial statements.
Crypto Technical Analysis
Please note our XRPUSD four hour chart above has remained intact since last week and all levels have been kept.
In a bullish scenario we may see the XRP moving above towards the (R1) 0.3245 resistance level, with the (R2) 0.3425 resistance barrier being next.
Even higher could be the (R3) 0.3628 resistance hurdle.
For the time being the digital coin is moving in a sideways movement between the (R1) 0.3245 resistance level and the (S1) 0.3019 support barrier.
If a bearish momentum is formed then the coin could drop below the (S1) 0.3019 support barrier, aiming even lower for the (S2) 0.2860 support barrier.
Even lower we could find the (S3) 0.2667 support hurdle.