Facebook rumours? are they buying Coinbase?

I have been reading lots of rumours on the Internet regarding the possibility of Facebook buying Coinbase, this would be surprising but perhaps not as totally ridiculous as it first sounds. Lots of big companies, like Microsoft, Google, Amazon when wanting to enter a new markets or technologies often purchase a company in that space rather than develop that technology themselves. Facebook would be in a very good position to purchase Coinbase, they certainly have the money.

Facebook have been rumoured to have been developing their own crypto currency for use on the platform, this would make total sense, Coinbase would be an ideal acquisition to complete this process. I very much doubt that Facebook would use an existing crypto currency, though this is of course a possibility.

Facebook created a Blockchain development team back in March and it would seem to indicate that they have made significant progress in this area.

An interesting situation would arise if Facebook were to purchase Coinbase, it would renew an old rivalry.

The Winklevoss twins Tyler and Cameron are heavily invested in Bitcoin and own the Gemini Exchange. If Facebook own Coinbase, that would directly pit Mark Zuckerberg against the twins, reigniting the whole who developed Facebook original idea controversy. That won't be brought up again as the case as been previously settled with the twins receiving a substantial payout but will provide an interesting backdrop to this story.

So what are the pointers for and against this rumour?

Against

By purchasing Coinbase Facebook would be adding huge credibility to Bitcoin and crypto currencies in general, this would be a massive boost to the Winklevoss portfolio. Would Mark Zuckerberg want to do this? Obviously not but if Facebook cannot ignore this space they will need to enter at some point and Mark Zuckerberg is shrewd enough to make the right decisions. I don't personally like Facebook but I believe Mark Zuckerberg treats Facebook like his first born.

Would Coinbase actually be required by Facebook to launch a new coin? Any coin that Facebook may create to use on their platform would have no problem in getting listed on an Exchange. So from that point of view, purchasing Coinbase seems to offer nothing that Facebook would not achieve otherwise.

For

Facebook has a huge user base, having a payment method on there would be absolutely massive for Facebook, in my opinion it would be equivalent to when Apple created the iTunes store. It would open up tons of applications for its users, from payments to transfers between friends to games etc.

I think that in the analysis of blockchain technology Facebook have come to the same conclusion in regards to the revenue that they could access, marry that with the restrictions on privacy that will be incoming, a major revenue stream for Facebook potentially curtailed, a move into a crypto coin for the platform makes perfect sense.

Entry into crypto is a barrier for lots of users, by purchasing an Exchange Facebook can ease that problem, there would be huge demand for the coins and Facebook would want to have complete access to the revenue, if they think the numbers will be big then owning an Exchange gets them the whole pie, they will also need an account with a large amount of funds, perhaps Facebook like what Coinbase have developed.

Another pointer that this rumour has legs, is that former VP of Messenger Apps at Facebook is currently on the Board of Directors at Coinbase, in addition to that he recently steeped down as VP of Messenger Apps to head the blockchain group at Facebook, coincidence?

What are your thoughts on this story, if this happens it would have huge implications on the market, almost certainly taking us straight out of this bear situation we are currently in.