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Facebook refuses to partner with Stellar Lumens (XLM)

Stellar Lumens (XLM) –Despite news suggesting the opposite, Facebook has denied entering into an agreement or long-term partnership with the sixth largest cryptocurrency by market capitalization, Stellar Lumens XLM.

It was revealed on Friday that Facebook and Stellar had recently held talks, leading the industry to speculate on a possible cryptocurrency partnership between the nonprofit Stellar, its currency XLM, and the world’s leading social media platform. Instead, Facebook has denied such a relationship, and a spokesman told the financial firm Cheddar, “We are not in discussions with Stellar and are not considering building on their technology.”

Business Insider was the first to do so break the news of a possible collaboration between Facebook and Stellar claiming that the social media company is investigating creating a Stellar-based blockchain to implement on their platform. While representatives from Stellar refused to comment on the rumors surrounding their organization and Facebook, the social media giant quickly denied any relationship with a cryptocurrency company.

The news also follows Facebook Vice President David Marcus step back of his position on the board of the popular US cryptocurrency exchange Coinbase and stated that his presence was a conflict of interest. While seemingly unrelated, Stellar Lumens has been the currency of choice as the next addition to Coinbase’s exchange as it is one of five coins earmarked for Coinbase to explore and possibly add in the near future. Marcus felt that his position as head of Facebook’s blockchain strategy created too much overlap with his role on Coinbase’s board of directors, but praised the sharing in a statement accompanying his retirement from the position.

“Get to know Brian [CEO of Coinbase]who has become a friend and the entire leadership team and board of directors at Coinbase have been an immense privilege. I am deeply impressed by the talent and performance that the team has shown during my tenure and I wish the team the success it deserves for the future. “

Although Facebook is declining to partner with Stellar, the company has been actively building a presence on the blockchain, possibly in anticipation of a cryptocurrency-based payment system. In July, Facebook’s director of engineering, Evan Cheng, joined the company’s recently formed blockchain team, a group founded in May by the aforementioned David Marcus. The team’s goal is to explore applications for blockchain and other distributed ledger technologies without giving specific details about a payment-based platform. In the original Business Insider report, the website included a quote from multiple Stellar sources claiming that Facebook would benefit greatly from partnering with their organization.

“It would make sense for Facebook to record payment transactions in a distributed ledger like Stellar.”

With the stellar price explosion that came with the potential Coinbase listing, it’s no surprise investors are trying to get to the bottom of a potential Facebook joint venture. At the very least, such a partnership would directly benefit the declining cryptocurrency market, which is established by one of the world’s largest companies for using cryptocurrency on social media.

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