Recently, Facebook announced Libra to the world; the news was received with mixed feelings, an act that has thrown the Crypto industry in a limbo lately. While some people welcomed the news warmly, other people, including the US president, were up against the decision.
Zuckerberg’s announcement threw the world in a mix, people and politicians alike did not expect this from a social media giant that was recently at the center of a data breach scandal, yet Facebook seems undisturbed by the negative sentiments and is keen on launching soon. The exact date is not yet out, but it is understood to be somewhere in the 2020s. While the world was digesting this news, the crypto industry was thrown in panic mode, as traders were concerned more about Facebook’s might that could throw the whole industry in obsolete disarray. Minor cryptocurrencies such as altcoins did loose their value during the announcement. In a statement, Facebook added that it is contemplating collaborating with other giants in the industry including PayPal, Uber, and others to support Libra. Combined efforts by these giants however may push small-scale programmers out and some altcoins could ultimately become obsolete.
However, there is hope for the small programmers after all; Telegram has also planned to join the crypto frenzy.
While Telegram does not have considerable resources to match those of Facebook, it can maintain a small war to keep Facebook in check.
Telegram the new Savior
Telegram dwarfs Facebook whenever the level of influence it has on people worldwide is compared. Facebook has a staggering 1.8 billion users, while Telegram has about 200 million users. However, Telegram has an advantage in that the entire cryptocurrency community runs on it, and will take some time for Facebook to catch up to it. Also, Telegram was able to raise about $1.7 billion, which is an unprecedented record so far for the social media giant.
The owner of Telegram has also managed to do what Facebook has failed to accomplish for a long time now. If Facebook’s recent woes in the data breach scandal is anything to go by, as third parties have been able to infiltrate it and obtain personal information, the consequences of these data breach on Facebook have widely been observed in different elections in the world.
Telegram and Crypto
When we carefully compare the pros and cons of the two social media giants, we may conclude that Durov is the right person to take on Facebook’s Libra. Telegram has the finances, as in the recent case where it was able to raise vast amounts of money beating its initial coin offering. Secondly, Durov, the founder of Telegram, is central to other successful startups in Russia, including the VKontakte. Lastly, the man is a doer, as one of his philosophies is action.
Looking at Facebook’s plate, Libra is under attack by politicians back at home. Also, the company has recently been slapped by a $5 billion fine by regulators for data breach, which for a moment has taken Facebook of the goal.
Therefore, it will be a battle of wits, and all we can do is to sit back and watch as the game unfolds.