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Most people are all too aware of the recent scandal involving Facebook and Cambridge Analytica. While the breach of user privacy is a grave concern, it seems this particular analytics firm also had some interesting plans in regards to digital currency. More specifically, the company apparently planned to issue its own type of digital currency before this whole Facebook scandal occurred.
Cambridge Analytica and Digital Currency
It is not entirely surprising to learn that even firms like Cambridge Analytica are interested in creating digital currencies. We have seen quite a few companies explore this option in the past, and it is only normal that a lot more will take this approach moving forward. Whether or not any of these currencies will be successful remains to be determined.
In the case of Cambridge Analytica, the company allegedly had plans to create a new cryptocurrency which would be sold through an initial coin offering. With a goal of reaching $30 million or slightly less, it’s evident this plan wasn’t something the team concocted overnight. For some reason, the plan was scrapped eventually, although it remains to be seen if the concept will be revitalized at some point.
Even though the digital currency plan may have been scrapped, the company is still eyeing blockchain technology. How this technology will be used in combination with its existing products and services is a different matter altogether. Blockchains can be used for many purposes, including the storage of data and adding transparency to existing business models.
It is evident the firm has developed a bad reputation in recent weeks due to its involvement with Facebook user data. Although that venture is completely different from issuing a digital currency or exploring blockchain technology opportunities, the recent developments may hinder the chances of success for both of those efforts.
Additionally, one could argue that blockchain technology could make social media networks like Facebook obsolete in the future. While that may be wishful thinking on the part of blockchain enthusiasts, it is certainly an option worth exploring by certain companies including Cambridge Analytica.Â
All of this goes to show that there is still plenty of interest in creating initial coin offerings and issuing native digital currencies. Competing with existing cryptocurrencies may not necessarily work out all that well, although different forms of money can certainly coexist. For Cambridge Analytica, venturing into blockchain and digital currency may bring a lot of positive attention to the company after the current scandal blows over.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.