Not long ago, Live Bitcoin News published an article discussing Facebook aka Meta and its decision to sell off any assets aligned with Libra/ Diem. It looks now like those assets have been sold and the project has officially come to an end.
The Facebook Libra Project Is Now Fully Over
The developers behind Diem confirmed in a statement that the assets were sold for around $200 million to a crypto-based bank known as Silvergate. Initially, both firms were working with each other to release a new stable currency that was backed by the U.S. dollar. This project began in the year 2021.
CEO of Diem Stuart Levey explained that there have been simply too many regulatory hurdles that the company has had to jump over, and thus executives are not eager to continue going through hoops to get the now dead project off the ground.
Diem was initially known as Libra and was introduced in the summer of 2019. The currency would have been a digital asset backed by a wide range of stable coins and fiat currencies, and it would have been released by the social media giant Facebook (the company has since changed its name to Meta). This was a project that likely turned a lot of people off right at the beginning considering Facebook’s tarnished reputation at the time.
The social media firm had been caught selling the private data of its users to third parties for advertising purposes without their knowledge or permission. This came to be known as the Cambridge Analytica scandal, and Mark Zuckerberg – the CEO of Facebook – soon found himself stuck in front of a congressional committee that wanted to know what tricks he had up his sleeve.
The company was eventually slapped with a penalty exceeding several billion dollars. Nobody served any jail time, and it can be argued that the firm suffered little physically, though it can also be suggested that Facebook’s reputation was never quite the same after that. This could be what affected Diem.
There Was Too Much Distrust
Rightly so, nobody wanted their financial information to be accessible by a company that had just been caught lying its way to the top and using people’s personal data to boost itself. Thus, many users began to worry about what Facebook was up to and chose not to engage in Libra or the calibra wallet, which would have held all units for Facebook customers.
The one good thing about Libra would have been that it would have brought crypto’s initial goals further into the limelight. The asset was designed for those looking to purchase goods and services through the Facebook social platform. This would have been positive given that crypto was initially designed to serve as a payment tool, but the distrust of Libra’s parent company made things difficult in the end.
Source: https://www.livebitcoinnews.com/facebook-sells-off-all-its-libra-based-assets/