Max E.Tue, Feb 1, 2022 4:14 PM
Mark Zuckerberg Sold The Cryptocurrency Project Diem
The Diem Association (ex-Facebook Libra crypto project) has announced the sale of its intellectual property and other assets to Silvergate Capital Corporation, the company said in a statement.
The association's CEO, Stuart Levey, said the Diem Association and its subsidiaries will begin winding down work in the near future.
The company paid $132 million in shares and $50 million in cash for the Diem project, Silvergate said in a statement. The bank plans to use the project to improve the existing stablecoin infrastructure.
At the end of January, Bloomberg reported that Meta is interested in selling the Diem crypto project.
Facebook announced the launch of its own Libra cryptocurrency in June 2019. However, soon the Facebook crypto was criticized by regulators in the US and the European Union. In the EU, the circulation of the Libra cryptocurrency was banned and they announced the need to develop laws that would regulate the circulation of cryptocurrencies. Also, investors began to leave the Libra project. MasterCard, Visa and PayPal were the first to make this step.
Then, Bloomberg reported on Facebook's plans to turn Libra into an analogue of the payment system and add support for other digital currencies, including those issued by central banks.
In May 2020, Facebook renamed the Calibra digital wallet to Novi and outsourced project management to a subsidiary. With this rebranding, Facebook tried to emphasize that the Libra cryptocurrency is not a company project, while Facebook is just one of the members of the Libra Association.
In December 2020, the Libra cryptocurrency was renamed to Diem. In May 2021, Diem announced that it would launch a cryptocurrency with Silvergate Bank as the issuer.