Facebook Diem Archives - Diem Central

6. February 20226. February 2022

Meta sells Diem assets to Silvergate in $200 Million | What happens now?

Diem, which caught all the eyes of the people since it came out as Libra in 2019 and Mark Zuckerberg defending it in front of the chamber of commerce for a long time, has taken a serious turn, Meta sells Diem.

According to The Wall Street Journal’s report on Tuesday, it is said that Meta(formerly Facebook) is selling its technology assets to the Silvergate capital bank for about $200 million ($180 million). Meta is one of the founding companies of Diem Association (formerly Libra Association) along with 25 other investors.

Later on, Bloomberg also reported that Meta Inc. was considering selling Diem assets to return the capital to their investors, who were backing them through the whole project.

Meta sells Diem to Silvergate Capital

Why did Meta step back?

There is still not a proper answer to the question. However, yes, it seems irrational to first step into digital payments while defending it for the longest of two years and then suddenly dropping the pin by accepting defeat in the cryptocurrency world.

But we might get an answer to this question of Meta stepping back if we look at all the previous incidents. Spoiler! Yes, things have been absurd.

First, Meta (at that time Facebook) comes up with this stablecoin known as Libra. Initially, Libra was supposed to be a new coin backed by a bucket of several cryptocurrencies.

Soon after Libra came into the limelight, it got into some serious laws scrutinies. And in the first year, some big investors, such as PayPal, Mastercard, and Vodafone, left the project.

This was one of the many reasons Libra Association switched to Diem to get a fresh start. However, just name wasn’t the only change that made up to the project.

Diem also switched their backing up reserves idea. Instead of a bucket of cryptocurrency Diem — the stablecoin was only backed up with USD with the association of Diem blockchain. And Meta gave the big news of Pilot Version of Novi Launch in the US and Guatemala with USDP by Paxos, as cryptocurrency and under the crypto custody of Coinbase.

Probably Meta, the Silicon Valley group, sells Diem to save their $85 billion per year advertising business model and digital social media channels that include Facebook, Instagram, and WhatsApp, which have been getting under the shadow of law scrutiny.

What is the Future of Diem?

This big step narrows down to one big question that keeps striking the chord in heads. What would be the future of Diem now?

It is too soon to claim anything yet, but Silvergate Capital and Diem Association have repeatedly refused to comment on this mutual deal between both parties if we look at the insights.

This puts the whole Diem project on the radar. However, Silvergate bank has been dealing with major cryptocurrencies in the past, and there are good chances that they will carry on with this Diem project.

Until the next news, we have our fingers crossed to hear more about this project, but one thing is quite certain when Meta sells Diem. As Meta and the whole Diem project have shifted their decisions in the past, investors and users are losing their interest in Diem.

In the comment section, let us know what you think would happen to Diem now or if it was a good step by Meta?

27. January 202228. April 2022

Can I Mine Diem? | Here is Everything that you Should know

a mining rig on the back with question of diem mining

As the clock is ticking and after the Novi launch in the US and Guatemala, Diem (formerly Libra) is getting into the limelight. With all this attention, many people have been asking one simple question — Can I mine Diem?

I understand the confusion, as Diem is a cryptocurrency, and most of them (such as Bitcoin and Ethereum) can be mined.

But where do we stand when it comes to Diem? Let’s cut to the chase and see whether you can mine Diem or not?

Can I mine Diem?

No, you can not mine Diem because it’s not like any of the regular cryptocurrencies; instead, it is a stablecoin that’s backed by USD.

But then the question comes — why can’t you mine Diem as the rest of the cryptocurrencies, which can be mined like doodling, right?

Keyfactors of Diem with mining — Key Components of Diem and Mining

Why can’t you mine Diem?

To understand why you can’t mine Diem, you have to understand how mining works!

Other cryptocurrencies use a distributed ledger called blockchain that verifies all the transactions, and miners are the nodes that help verify the those (and get a reward in return).

In the case of Diem, it is not a regular blockchain. Instead, Diem runs on a permissioned blockchain by the Diem Association. In simple words, this means that only authorized entities such as wallets and exchanges are allowed access through Diem’s blockchain.

This means there is no need for miners to verify the transactions, and it can prevent scams by closely working with local authorities if needed.

Bottom line

Diem is different from the rest of the cryptocurrencies, such as Bitcoin. You can learn about all the major key differences between Diem and Bitcoin. But Diem doesn’t require miners, and there is no way anyone can mine it.

So, it is better to wait and keep it as an option for transactions and investments.

27. January 202227. April 2022

How Facebook (Meta) is making money by lettings its own users be scammed.

Yes. You read that right.
There are ways from Facebook to sites that aim to scam users with fake Diem sites. And Facebook gets its share. How can that be?

The Diem Scammers

So let’s start from the beginning: Facebook, or Meta now, announced to start an own Cryptocurrency, called Libra. Later called Diem. And since the upcoming of Bitcoin and Crypto, people have FOMO and want a part of that sweet money that can be made in the crypto market.

One of the most successful articles on our website is called “Most of the Known Diem Scam Sites | Protect yourself.“, it’s a collection of scammer websites that aim at people trying to make money with Diem. The scammers know, people are greedy. And the people want to have that Facebook coin, it seems to be a fair bet, that this currency will be secure and widely accepted.

Funny thing is:

There is no Diem Coin (yet)
Diem will be a stablecoin (so bound to the dollar and not gaining worth)

… but those sites claim to have a Diem coin today, it has a changing value and you can buy it right now.
You just need to transfer them money 😉
And if you did, money is gone.

So how is Facebook making money with this?

Facebooks scamming cut

How Facebook is making money with this, you ask?

The answer is simple: With ads.

Of course, people are looking on the Facebook website, where to buy Diem. And there they can find ads, that lead to scammer sites and with every click, Meta fills its pockets because that’s how they make money: with ads.

This is ridiculous. Think about it: Meta is making money, be letting it’s own users be scammed.
Let’s have a look at one of these ads:

Diem Scam Ad on Facebook — Diem scam ad (Source: Facebook)

Most of the time, the link to the scammer website is not directly in the ad, but in the first post below the ad.

How do scammers get their scam on facebook.com?

But I still don’t get it: How can such an ad make its way on the Meta channels? I do a ton of ads on the Meta network, and everybody who does this, knows how hard it sometimes can be to get your ad displayed. Ads are rejected because they offend rules all the time.

So I can’t believe how an ad which is clearly aiming to scam (“To the moon”) and violating so many rules for ads (they claim to be Diem, use the Diem logo and CI, which are owned by Facebook/Meta itself!) can make it on the site.

Many people are writing us for help, because they spend huge amounts of Ethereum to buy Diem on the scammer website. When we ask them how they got there, they said, “From Facebook” and I refused to believe them until they send me screenshots of the ads.

To say it in ‘The Messenger’s’ words:
“This is madness!”