As you might have already know, the Facebook creator Mark Zuckerberg had an initiative to make stablecoin act as the internets currency.
To understand the situation as well as possible, stablecoins are digital assets that are similar to fiat currency, but provide utility and versatility of a cryptocurrency.
However, Meta-backed “Diem” is supposedly having a sale as a result of the stablecoin plans getting cold feet.
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To be exact, Diem was known as Libra for a while, and it's the Meta platform’s cryptocurrency proposal. According to the insider sources, the collaboration with various other companies was insufficient to shield the project from international regulatory oversight. After Zuckerberg was asked to testify, several of the project's partners dropped out, and it was renamed as Diem.
There is some information that Diem is in discussions about how best to sell its intellectual property and return the capital to its investors.
There aren’t any certainties about what value the project has maintained, and if the buyer will be found overall. Almost all of the venture is owned by members of the association (Coinbase Global, Shopify, and Uber), and about one-third is owned by Meta.
Diem’s website shows that its partners include venture capital firms such as Andreessen Horowitz, Union Square Ventures, Ribbit Capital, and Thrive Capital as well as Singapore state-owned investor Temasek Holdings Pte.
When a senator asked David Marcus, a former head of Libra, "Do you really think people should trust Facebook with their hard-earned money?", he immediately replied by saying “If our country fails to act, we could soon see a digital currency controlled by others whose values differ radically from ours."
Diem was launched on June 18th, 2019, and in that short time, had faced quite a few controversies. It was intended to be maintained by Switzerland-based consortium companies called the “Libra association”.
Both Mark Zuckerberg and David Marcus testified before the House of Financial Services Committee. Besides, news about the project flew around the world quickly and triggered a pushback from the U.S. government, which was concerned about privacy and monetary authority.
A lot of actions were performed with the goal to shake off the mass panic, many partners were quick to abandon the project altogether. But the question of what would be the most logical solution still stands.
