Metaverse is a platform with a different vision to bring on the digital revolution. While the buzz for the platform is at its peak, the news of Meta Platforms Inc-backed Diem Association selling its assets to crypto-focused bank Silvergate Capital Corp is the talk of the hour. This sale is the end of the tech giant’s dream to facilitate its users dealing with its currency and is considered a setback.
The Deal Of Silvergate Capital Corp And Meta Platforms Inc
According to the statement shared by the former, Silvergate Capital Corp, the total deal value paid to Meta for the crypto asset sale is $182 million. It includes the price paid for intellectual property rights and other linked assets.
The sale marked the end of several years of struggle for Meta’s fintech unit, which had lost most of its leadership, including director David Marcus, in the fall due to a staff exodus.
Meta Is Now Under Question
This deal is surrounded by various questions from the users and admirers of Meta. It also questions Meta’s plans for commerce in the Metaverse, a futuristic digital environment dubbed “the successor to the mobile internet” by CEO Mark Zuckerberg. Though the early transactions were aimed at using crypto for purchase and sale, this deal raises questions.
The Diem Project
The announcement by Facebook in 2019 of plans to create a cryptocurrency and payment system immediately raised red flags among global finance officials. The result was the immediate launch of a barrage of criticism about the security and dependability of a private network. Yet, Meta bought Diem to existence.
It first announced the Diem project in 2019; it was initially dubbed Libra. This project created concern among the regulators as the project could give e Facebook too much control over the money system and infringe on users’ privacy. Facebook renames both the digital coin and the wallet as Novi to get approval.
As of now, Meta is testing Novi in Guatemala and the United States using the stable coin Pax Dollar. There is still some pushback from lawmakers, yet Meta is ready to give a breakthrough.
