Meta-backed cryptocurrency company Diem looks to sell off assets, according to rumours
Diem, the cryptocurrency project backed by Meta, appears to be unravelling as rumours of asset sale talks emerge. According to sources close to the matter who spoke to Bloomberg, The Diem Association is considering selling off assets to enable the company to return investor capital.
Apparently, Diem, formerly known as Libra, is consulting investment bankers to find ways to sell its intellectual property. The company is also reportedly looking for new jobs for those currently working on the project.
Diem was announced in 2019 as Facebook's stablecoin offering. However, the project was controversial, with Mark Zuckerberg called to testify after concerns raised about his approach to cryptocurrency.
Silvergate Bank agreed to issue Diem as a stablecoin pegged to the U.S. dollar in May. Still, the U.S. Federal Reserve was nervous about the activity, with Fed officials stating that there were no guarantees that it would give the project the green light. Given the lack of confidence, Silvergate has not issued any Diem coin.
Last year, there were other signs that the company was struggling, when Diem's founder David Marcus left Meta and when Meta released its digital wallet using Paxos rather than Diem stablecoin.
If these reports are correct, it might suggest that Diem is winding down. There has been no official statement from Diem or Meta on these rumours. However, Micheal Crittenden, a spokesperson for Diem, said that the Bloomberg article contained "some factual errors".