Daniel Larimer, who co-foundered crypto offering EOS, has reportedly criticized Facebook. He has accused the most popular social media network in the world of stealing user data. He attacked the network for collecting user information and using it to sell ads. Larimer’s EOS is the fourth largest cryptocurrency by market capitalization.
Litecoin (LTC) Price Today – LTC / USD
Larimer: Facebook Uses Private Data to Allow Companies Purchase Targeted Ads
According to Larimer via his Twitter handle, Facebook gives user data to offer firms the possibility of purchasing targeted ads. This implies that the social media network is selling user data and profiting from it.
There have been a number of critics related to Facebook in the last few years. Back in 2018, the Cambridge Analytica scandal is one notable pitfall of the network. At the time the company used the personal information of millions of users on Facebook for gains. Since then onwards the social network has been under a series of attacks and criticism.
Larimer remarked that the targeted ads are created based on personal user data collected by Facebook at all times. Indeed, it is a difficult thing to do, if not nearly impossible to put an end to. Users can now see when they are tracked the moment they see a personalized ad displayed on Facebook.
Crypto Space Concerned About User Data and Privacy
The crypto community is specifically worried about privacy and their information. This is why after Larimer’s comments, other users began to complain about Facebook’s services and how it utilizes people’s private information.
Recent reports indicate that Facebook has since been working on an unknown project. Rumors are making rounds that the social media giant is looking to launch its native virtual currency. Although there as of press time there isn’t any information about the project. We understand that such a virtual currency could be a stablecoin tied to the USD or another fiat.
If the reports prove to be true, in the beginning, the virtual currency will target the Indian remittance market (which is used on the WhatsApp messaging app). In the future, other nations could be included and other networks including Messenger, Instagram or Facebook.
Crypto Community Have Reason to Be Concerned about Talks of a Facebook Digital Asset
If the rumors that Facebook is working on a virtual currency prove true, then there’s cause for concern among the user community. With a native virtual currency, Facebook could have more access to gather larger user data. Take an example. This development will allow Facebook to know what users purchase, when they purchase it, who they send the funds to, how much they spend on a monthly basis and much more.
In addition to that, individuals on the network will have to remain compliant with the entire KYC and AML policies of Facebook. This, in essence, means that users will not be sure whether the virtual currency is really a positive development or not. Users who want their privacy respected might decide to use other digital assets like Monero (XMR) or Litecoin (LTC).
These concerns are genuine and shouldn’t be disregarded. Whether Facebook’s project is related to the development of a digital token remains to be seen. However, in due time we will be able to tell if these rumors hold any water.