April 18, 2024

Diem’s progress has been hampered recently by several setbacks, like the departure of certain project’s early financiers, which was forced when Zuckerberg appeared before Congress.

Diem Project’s Plans to Liquidate Assets

According to rumors, Diem, previously called Libra, may be coming to an end. The project, which Meta Platforms Inc finances, is considering selling the project’s intellectual properties and investments. According to Bloomberg, which cited persons acquainted with the situation, the initiative is in discussions with financial advisers about how to evaluate the business and repatriate some money to supporters.

Meta Platforms announced Diem in June of this year, but growing laws around the world quickly stifled its goals. With intentions of making the Diem coin the web’s currency, watchdogs and policymakers in the US have expressed reservations that the initiative might jeopardize economic independence, based on Facebook’s Daily Active Users.

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Notwithstanding the notion that numerous sector titans are involved in the project, like Singapore-based Temasek, Coinbase Global Inc, and Andreessen Horowitz, their impact is generally insufficient to persuade authorities of the Diem project’s viability. While neither Meta nor any of the investors have responded to the assertions of liquidation, the organization is still working on finding another place for the engineers that contributed to the project.

Woes of Diem and Meta

The Diem project recently met several difficulties, like the departure of a few of the project’s original financiers. This decision became essential when Mark Zuckerberg appeared in front of Congress. Diem project has been deteriorated by the departure of a few associates of the Diem organization, and the project’s chances of success were further harmed when Silvergate Bank, a division of Silvergate Capital Corp that was meant to be the token’s issuer, was incapable of obtaining clarity from regulatory agencies concerning its ideas for the Diem Coin.

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Based on Bloomberg sources, the possibility of a US Federal Reserve crackdown was the last straw, severely diminishing the project’s supporters’ determination. This was exacerbated by the departure of David Marcus, the Diem project’s then-director.

Based on insiders, it’s uncertain whether or not the Diem project would discover buyers or the cost of the intellectual property would be worth it. Meta Platforms, which possesses around a third of the project, would benefit the most from the shareholder, and there aren’t any signs that Novi Wallet would be engaged in the complete selloff plans. Meta Platforms might be considering a sale in order to concentrate more on its metaverse objectives, where it also rebranded in 2021 from Facebook Inc.

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