Meta CEO Mark Zuckerberg has had plans to form his own cryptocurrency for over 2 years now, but it appears this dream may be soon dying. Zuckerberg owns The Diem Association, which has acted as the overseer of the cryptocurrency Diem. However, Diem is reportedly now attempting to sell its assets in an attempt to return currency to the coin’s investors.
The talks are currently ongoing, but reports find that Diem is in the process of walking investment bankers through the process of selling whatever value remains in the asset. Diem is also attempting to save face with engineers who they brought on to help produce the technology behind the coin by finding new employment for them. With all of this reportedly being done at the moment, there still is no guarantee that Diem can even find a suitable buyer any time soon.
While Meta and Zuckerberg are in ownership of around a third of Diem, other prominent members are involved such as Union Square Ventures and Ribbit Capital. This makes this attempted sale challenging, and even furthers the complicated nature of this failed crypto venture.
Zuckerberg’s cryptocurrency was originally a stablecoin called Libra and was announced in 2019. Since then, it has been a tumultuous project, to say the least. Its plan was to become a currency that could be transferred universally through its ties to other world currencies and government debts. Bankers and politicians, however, immediately worried that the crypto would be an easy target for fraud, money laundering, and have major privacy concerns. This forced the Libra project to be only a U.S dollar-backed stablecoin which was renamed Diem.
Unfortunately for Diem, the project could never get enough backing to seriously get off the ground. In addition, players who were once seriously invested in the cryptocurrency would leave following Facebook’s transition into Meta. It appears as if the ship has finally sunk on Zuckerberg’s crypto project.