Russian Social Media Giant VKontakte to Launch its Own Crypto

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As per the local news outlet RNS, the most popular social media platform in Russia, VKontakte (VK) eyes to launch its own digital currency.

According to the report, an unspecified person familiar with the firm’s plans told the outlet that the project includes the creation of individual digital currency accounts for all the users of the platform. However, the article further asserts that the company has not yet made a final decision about whether or not to launch the coin.

As per the report, RNS has received a presentation from the VKontakte (VK) that explains how one of the ways users would be able to get the company’s tokens is in exchange for their activeness and time spent on the platform. As per the article, the coins obtained this way could be accumulated, transferred among users, exchanged for goods and converted (presumably to fiat currency) via VK Pay.

As per its official website, VK Pay is a cashless money transfer service that allows VK users to send money to each other in messages using a debit or credit card. As per RNS, the service was started in June last year.

According to the report, VK further plans to integrate a tipping service so that users would also be able to send the bespoke digital currency to the authors of posts that they like.

Market research firm eMarketer projected in 2017 that VKontakte (VK) would exceed 42 million users in Russia before 2018. Along with being a top social media platform, VK is right now ranked third most popular website in Russia, as per Alexa.

In the Meantime, VK’s founder is Mr. Pavel Durov, who too co-founded the privacy-centric messaging service Telegram, popular in the ranks of crypto enthusiasts.

In February 2019, rumors spread that Telegram has to start its own blockchain network, TON, by October this year to keep from voiding its token contracts. Earlier, the company intended to hold a public initial coin offering (ICO) but reconsidered after receiving abundant fund $1.7 billion in its private two private token sales.