Facebook Owner Zuckerberg’s Sells Of His Ambitious Crypto Project

Facebook Owner Zuckerberg’s Sells Of His Ambitious Crypto Project
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Around 5 days ago, on 27th January 2022, Facebook owner Mark Zuckerberg’s dream project, “Diem”, which is related to cryptocurrency was shattering. As it faced a lot of pressure from the regulators, Zuckerberg had to crack under the pressure and put the project up for sale, as a way to return capital to its investor members. 

It was announced on Monday by Diem’s association that, Zuckerberg’s dream project had sold its assets for approximately $200 million. The buyer is a crypto-centred bank with which Diem was working with- Silvergate.

The two entities were sharing power to launch a stablecoin pegged to the US dollar. The company has also included its intellectual properties in the sell off, supposedly as a last effort to redeem any value that is left in the ambitious project. Diem CEP, Stuart Levey stated in a press release that, the decision to sell of Diem was made after it was crystal clear that dialogues with the federal regulators would not be fruitful.

The statement did not come as a surprise as it was already evident that the USA’s central bank, The Federal Reserve was a vital opponent to Diem’s launching. With this, the project that was once seen as a major part of the metaverse vision aspired by Zuckerberg, came to an effective end. 

The project would use the applications created by Meta, formerly known as Facebook, as a primary way of accessing the token in any ways. It had formed an association to govern the token with other companies- Libra Association. It was a negative public sentiment that concluded that the Facebook, which has always been the centre of controversy for some or the other reason, would become even more powerful. Interestingly, for reasons unknown, members of the Libra Association started to drop out after mere days of its announcement. This might be why the Federal Reserve was opposing Diem by all possible means. 

Stablecoins are designed in a way to hold a particular price, so as to bring in regular transactions. Although this too is a relatively newer field in the crypto market, it spread out all over the world very rapidly. Considering this, many countries were of the opinion that the stablecoins should be regulated by the central banks of the respected countries. It was recently revealed that the White House was calling in recommendations from the Federal bodies of ways to regulate, monitor and oversee cryptocurrency industry. 

Although with the sell off, all connections of Meta and Zuckerberg are severed with Diem, it cannot be denied that Silvergate might just go ahead with it. Another revival might be a possibility. It is known to all that Meta had an unfavourable reputation for privacy and security concerns. But, on the other hand, Diem’s design was relatively better in terms of transparency and was said to be a lot easier to regulate than the system of many other stablecoins. 

David Marcus, a former Facebook executive and the one who created the Libra association tweeted the following about Diem’s sell off – “Here’s to yet another chapter with a maybe more “acceptable” promoter driving the vision forward. There will be ample time in the future for me to properly reflect on the behavior of certain politicians and regulators along the way, but for now… onward!” His tweet indirectly points out the politics that was involved in the events that eventually led to Diem’s sell off. 

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