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Russian Social Media Giant VK Looks At Option Of Launchin Native Crypto

According to Russian domestic news outlet RNS, VKontakte (VK), popular social media platform, is looking at the prospects of creating a native cryptocurrency. According to the news release, an unidentified individual apprised of the company’s intention has revealed that the venture counts in the development of distinct cryptocurrency accounts for all the frequenters of the platform.

Despite these developments, the news release states that a final decision on the creation of the crypto token is yet to be made.

Furthermore, the report states that RNS has received a sales pitch from VK that explains one of the methods for users to obtain the company’s tokens is through their active participation and time spent on the platform. The tokens gained in this manner could be accrued, exchanged between users and used for the purchase of goods. The tokens can be even converted supposedly to fiat money via VK Pay.

In its official website, VK Pay claims to be a cashless money remittance service that allows VK users to send money using a debit or credit card, while messaging each other. The service was introduced in June 2018, according to RNS.

Furthermore, VK also aims to feature a tipping facility so that users will not find it difficult to remit the tailor made cryptocurrency to the writers of articles that they are impressed with.
eMarketer, a market research firm, had predicted in 2017 that VK would have more than 42 million clientele before 2018 in Russia alone. In addition to being a popular social media platform, Alexa indicates that VK is presently rated as the third most famous website in Russia.

In the meantime, Pavel Durov, founder of VK and co-founder of privacy-centric messaging service Telegram, is popular among crypto enthusiasts. Back in February, there were rumors that Telegram is planning to launch its native blockchain, referred to as TON, by October 2019 to avoid its token contracts from invalidation. Earlier, the company aimed to conduct a public initial coin offering, but reviewed after collecting pile of money, to the tune of $1.70 billion, through its two phase private token sales.

Back in February, a New York Times article reported that Facebook is “hoping to succeed where Bitcoin failed” with its confidential cryptocurrency venture.

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