While creating a new metaverse to be incorporated into Facebook, Mark Zuckerberg has decided to sell the cryptoasset project developed in 2019.
Currently called Diem USD, Facebook’s cryptoasset is being negotiated with Silvergate Capital. According to the sales forecast of the venture, the US fintech can pay US$ 200 million for the social network project.
After facing regulatory problems in the United States, the digital currency under development by Mark Zuckerberg may sell its intellectual property, moving Facebook away from running a cryptoasset project of its own.
Before being announced as a possible buyer of Diem, Silvergate Capital was hired by Facebook to issue the project through Silvergate Bank. However, the lack of regulation for the industry in the US has affected the development of the digital currency.
Under development since 2019, Diem USD was initially announced by Facebook as Libra. Classified as a stablecoin, the project would have the price pegged to fiat currencies, such as the dollar.
Presented as a data management consortium, Libra had major validators on the network, such as Mastercard, Visa, and Mercado Pago. However, these partners left the project after impediments to the launch of the stablecoin were presented by regulators.
Seeking to continue the project, Mark Zuckerberg changed the name Libra to Diem USD, preserving the stablecoin features of the initial project, with the price pegged to the dollar.
Although the stablecoin was never officially launched, large companies are still part of Diem USD, such as Uber and Coinbase. In total, the social network owns only 1 ⁄ 3 of the business, with the rest being part of those who invested in the project from the beginning.