Of course, you know Libra as the balanced zodiac sign. But have you heard the current news about the Libra Facebook Coin? It’s a brand-new Cryptocurrency by the world’s top social media site Facebook.
In this week’s blog article, discover what’s behind Facebook’s new crypto coin Libra and how Cryptocurrency is relevant for digital marketing.
And learn how the experts of Tenba Group can help you to stay ahead of digital trends by setting you up with the latest digital marketing technologies.
What is the Libra Facebook Coin?
In June 2019, Facebook published the whitepaper of its very own cryptocurrency Libra. According to this, “Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.”
Libra is a permissioned blockchain digital currency. The project is managed by the Libra Association. This is a membership organization including Facebook and 27 other organizations in the fields of payment, technology, telecommunication, online marketplace, venture capital, and nonprofits.
At present, Facebook derives most of its 55 billion USD revenue from advertising. The new digital crypto Libra – along with its new digital wallet feature Calibra – can serve to diverse Facebook’s streams of income.
In fact, Calibra will become a part of Facebook Messenger and WhatsApp and also will be a standalone iOS and Android app. The digital wallet will let users save, spend, and send Libra coins.
Libra crypto lets the digital coin flourish
As a result, not only Facebook’s more than 2 billion users are thrilled. Even though Libra is not really a Cryptocurrency per se and thus does not offer benefits of the Bitcoin brand, it is still exciting news in the market.
Opposite to cryptocurrencies like Bitcoin which run on permissionless blockchains, Libra is not decentralized. It relies on trust in the Libra Association as “a de facto central bank”.
At the end of June 2019, Bitcoin reached a 17-month high with an exchange rate of over 13,000 USD. Many experts believe that the creation of Facebook’s coin, Libra, legitimizes Cryptocurrencies.
With Facebook’s brand power and payment partnerships with high-profile companies like Visa and Uber, industry experts believe that the social media platforms’ massive reach will enable the digital coin Libra to flourish.
As of June 2019, the Libra currency and network do not yet exist. The launch is scheduled for 2020.
What is Cryptocurrency?
To begin with, a Cryptocurrency is a digital asset, used for the exchange of value. It applies strong cryptography to secure financial transactions. Cryptocurrencies use decentralized control, which works through distributed ledger technology (DLT) or blockchain.
Bitcoin (BTC), first released in 2009, is generally considered the first decentralized cryptocurrency. Decentralization and not being tied to a fiat currency like the USD makes it highly volatile. In fact, Bitcoin and its fellow decentralized Cryptocurrencies are only as valuable as people believe they are.
On the other hand, Libra is a so-called stablecoin, as it tied to a basket of fiat currencies and securities. Every time the Libra Association trades a Libra, they buy and store the equivalent in fiat currencies and securities in a bank account. So, its value cannot rise exponentially. This provides more stability for the coin, and less volatility than for example bitcoin, which is not tied to any real value.
Another example of a stablecoin and among the most well-known stablecoins is TrueUSD (TUSD), backed by the USD.
Besides stablecoins, there are mostly payment coins, which are not linked to fiat currency. Those are for example Bitcoin, Litecoin, and Monero for anonymous transactions. In total, users created more than 4,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) over the last 10 years.
Finally, there are Utility Tokens like Chain Link, which link the blockchain technology to the real world. Utility Tokens are services or units of services that users can buy. The most common type of utility token is the ERC20 Ethereum standard.
What Facebook can learn from WeChat
WeChat (aka Weixin in China) entered the market in 2010. Since then, Tencent – the tech-giant behind WeChat – has frequently added innovations to drive growth and loyalty. Today, WeChat is China’s most popular messaging app with more than 1 billion daily active users.
In fact, for many people in China, WeChat has become an essential part of their everyday lives. Besides chatting, playing games, shopping, reading news, and posting their thoughts and pictures, users can now book a doctor’s appointment and make payments with WeChat Pay.
Does that sound familiar? Well, Facebook is catching up quickly. Surely, you can connect with people, play games, and engage with brands. But its focus is still entertaining rather than functional. The Facebook Libra Coin as a digital currency has the power to change that and add value to consumers.
How is Cryptocurrency relevant for digital marketing?
Blockchain – the technology behind digital currencies like Bitcoin, Litecoin, and Ethereum – also entered the area of digital advertising, for example with the BAT (Basic Attention Token), a utility token.
Since cryptocurrencies like Bitcoin are decentralized there’s no credit card or other centralized transaction taking place. This also means that no one saves personal data and information centrally. However, this makes the job of advertisers using personalization and remarketing tools difficult to impossible.
If the decentralization trend continues, the only marketing option will be to confirm transactions with consumers themselves. For example, newer social media platforms like Earn allow direct communication with users and brands, encouraging them to establish dialogues.
5 ways to skyrocket your business online
Here is the Tenba Group’s experts’ list of 5 essential methods to unlock the potential of blockchain-based digital marketing – in China and around the world.
- Shine on Steemit: We create and post blog articles on Steemit. Steemit is a blockchain-based blogging and social media website. It rewards its users with the cryptocurrency STEEM for publishing and curating content. China currently ranks number three of countries using Steemit. For one, the Chinese government doesn’t censor it, and the revenue share model makes it attractive as well.
- Run Ads on Brave Browser: We create and run tailor-made Ad Campaigns on Brave Browser, unlocking the potential of the BAT project.
- Go International: With the global connection of the world through the internet, customers go beyond local markets. As a business owner, this provides an exciting chance to connect to new markets and audiences worldwide. A professional multilingual digital presence combined with the right digital marketing and branding strategy for your audience will unlock this global potential. Tenba Group offers translation and proofreading services in three languages – English, Chinese (Simplified), and German.
- Stay ahead of digital trends: At Tenba Group, we always stay up to date with the latest technology and industry news. We are happy to share this with our clients, so you can stay ahead of digital trends. We are excited about the launch of the Libra project to offer you additional digital marketing services.
- Accept Cryptocurrencies as payment: By doing so, you position yourself as a modern business at the pulse of time. A trendsetter rather than a trend follower. At Tenba Group, we accept Cryptocurrency payments in Bitcoin (BTC), Ethereum (ETH), Steemit (STEEM), and Basic Attention Token (BAT) for our services.
Take your business further with these 5 effective techniques.
Tenba Group is your digital marketing agency and your digital link to China and the World – from web development to digital marketing and branding strategies.
We help you to stay ahead of digital trends and offer the latest digital marketing technologies, based on blockchains, like BAT and Steemit.
And all of that at an affordable price – our digital services won’t break your bank. Conquer the digital world today!
Not sure how to unlock this potential you just read about? Test our digital marketing agency services with our FREE CONSULTATION! In the meantime, continue reading about Facebook and how to boost your business with Facebook ads.