It has been stated that Mark Zuckerberg is preparing to sell assets in the controversial crypto money project Diem, which he once defended in front of members of Congress in the USA. Recently, there were reports that Zuckerberg’s Diem project was disappointing and that the project would come to an end.
It has been stated that Diem, a crypto money startup supported by Meta and previously called Libra, plans to repay its investors by selling its assets.
According to Bloomberg’s report, the group is in talks with investment banks to turn all the remaining assets of Diemcoin, the ambitious crypto money of a period, into cash.
When Meta’s Facebook introduced its stable digital currency in 2019, it announced its cooperation with many companies and set out to take its place in global financial services, but failed to protect the project from global regulations.
After the Facebook boss of the time, Mark Zuckerberg, was called to testify to Congress about the project, some partners left the project and its name was changed to Diem.
After that, Diem’s goals were scaled down and its founder David Marcus left Meta last year. The Group acquired Silvergate Capital Corp. for Diem transactions. However, the Fed’s resistance to this issue dealt the final blow to the project.
Diem stated in May that the transactions of Diem USD, a dollar-indexed stablecoin, will be handled by Silvergate Bank. After many meetings between Diem’s lawyers and regulatory agencies, the FED told Silvergate last year that the agency did not favor this practice and could not give assurances about issuing a permit.
No progress on the project
Silvergate, who did not feel safe after the expected green light from the authority did not come out, did not want to take any action on the new asset and the Diem initiative could not turn into a crypto money.
In November, federal auditors clarified the source of the disturbance in their report. In the report published by the Financial Markets Working Group formed by the President of the USA, it was stated that the transactions should be made by regulated banks in order for the fixedcoins to be used for trading.
Auditors noted that they were concerned that if a major tech firm made such transactions in a new currency, it would lead to “extreme concentration of economic power”.
While it’s unclear how potential buyers will value Diem’s intellectual property rights, sources say the talks are at an early stage and it’s not certain that Diem will find a buyer.
It is stated that while Meta owns one third of the venture, the rest consists of capital risk firms and technology firms that invest in the venture.
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