Zuckerberg’s dream of launching a cryptocurrency is officially over: the Meta token rejected again by the regulators.
Goodbye Diem: Meta’s cryptocurrency rejected again
After numerous rebrands, Congressional hearings and several statements, Meta’s cryptocurrency is officially in the drawer of ambitious projects ever realized. TheVerge reports that Mark Zuckerberg’s company has confirmed that it has sold its assets for about 200 million dollars a Silvergate. The latter is a bank focused on cryptocurrencies. The decision to sell was made after “it became clear from our dialogue with federal regulators that the project was not going to go ahead,” he said. Stuart Levey, CEO of Diem in a press release. TheVerge further points out that the US Federal Reserve was a key opponent in Diem’s launch.
The sale of Diem’s assets marks the end of an effort that, in retrospect, was doomed from the start. Facebook, which is now called Meta, has created specific apps for the use of the new token, attracting the attention of the authorities concerned about any actions by unfair competition. In fact, even after the formation of the Libra Association – to transparently manage the token with other competitors – the omelette was already done. In fact, the Libra Association project ran aground shortly after its formation.
What will Silvergate do? Will he launch Diem untied from Zuckerberg?
Diem is therefore no longer linked to Meta, but the question now is: what will Silvergate do with it? TheVerge reports that the Zuckerberg brand, after the various problems, would have somehow sunk the value of the token. However, the design of the crypto, and its position as a stablecoin, could meet the favor of the authorities if presented as a cryptocurrency not linked to the excessive power of Facebook / Meta.