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?
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?
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.
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 (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!”
After two years of rumors and breathtaking news, Meta has finally announced the launch of Novi in the US and Guatemala. Yes, a digital wallet.
It has been exactly two years to the announcement that it will be available. Finally, the wait is over; now that Novi is available in US and Guatemala. However, it is launched on a small scale on a trial basis. It will be made available on a larger scale once its trial period reaches success.
Novi is now Available in US and Guatemala on Trial basis.
Important to know:
Although the Novi Wallet is now officially there, this does not mean that the Diem Currency is here! If someone is offering to buy Diem at this point (Nov 2021) it’s a scam.
The only currency you can trade is the Stablecoin USDP (formerly known as Paxos).
Here are Some Key Factors from the Novi launch in the US and Guatemala.
Novi is backed up by consumer protection and essential regulatory control to avoid fraud and other potential pitfalls. Novi makes sure of the security of its users. Each customer at Novi gets verified with a government ID before signing up.
Novi is available in US and Guatemala for the test launch only. The primary function of the test is to observe the functionality of Novi and if any improvement should be made that can provide ease to users.
Facebook financial head David Marcus has said that for the test lunch, users are allowed to receive and send money through USDP stablecoin, which is operated by Paxos. Novi users can deposit dollars, convert them to USDP, and withdraw the cash in their local currency.
For its test launch, Novi will be using a formerly established currency that is Pax Dollar, which is supported by Paxos. Paxos is a financial service-providing company that is New York-based. It is used for protection purposes and to build the trust of their customers by protecting their funds.
Although the announcement did not give any hint of when the Diem (formerly Libra) will be live again. It is a formerly introduced currency by Facebook. Diem faced major criticism after its launch and, until now, is facing regulatory approval.
Now that Novi is available in the US and Guatemala, the users of both states can enjoy a free transfer from person to person and profit from commercial relationships.
For the ease of users, the digital wallet will be made available as a mobile app on both Google Play and Apple’s App Store. However, there are a few exceptions. For now, the mobile app of Novi is not available for the residents of some countries that include; US Virginia Island, Nevada, New York, and Alaska.
Final Words
Previously Novi Wallet partnered with Coinbase, which also gave us some important insights from who Novi would work, don’t forget to read that.
I hope this helps to start your journey with the Novi. If you want to keep updated with Diem, make sure to subscribe to the monthly newsletter.
Since Facebook announced it’s own cryptocurrency back in 2019 – at that time it was called “Libra” and the Novi Wallet “Calibra” – people are waiting eagerly for the release date of Diem.
Facebook Diem Release Date
So Facebook Diem is coming out worldwide at: 21. March 2023 !!!
No, sorry – just kidding! If only we knew when Diem Crypto is being released. Actually, nobody really knows – it was set in 2019 and postponed ever since.
One of the most asked questions among crypto enthusiasts; Diem, a famous stablecoin owned by Facebook that has psychologically targeted people’s minds, and Bitcoin, which is the most famous and traded cryptocurrency so far, what is the Diem Bitcoin difference?
We get that a lot, which is why we have decided to give a piece of brief information. If you are also looking forward to knowing all about Diem vs. Bitcoin, you are in for a treat. Additionally, Diem and Bitcoin aren’t on the same page here. However, to decide a boss from one of them you should learn about them individually first.
What is the Diem Bitcoin difference?
Is Diem also a cryptocurrency?
What is Diem Association, and how does it work?
What was the need for Diem?
Why they had to change the name of Libra?
How can we use the Diem?
How is Diem different from other cryptocurrencies in the market?
Can Diem succeed in the market?
Are there any risks of using Diem?
Can Diem takeover the Bitcoin?
What is the Diem Bitcoin difference?
Diem is not at all like Bitcoin; rather, it is a stablecoin, which is more similar to Tether and other cryptocurrencies pegged with some collaterals. Although Bitcoin has its blockchain, Diem runs over its own Diem blockchain, and the wallet is called Novi (formerly called Calibra).
In the vision of Facebook, Diem will be used for payments. Nonetheless, the Diem blockchain is different from the Bitcoin blockchain; it is programmable, so developers around in the market can make applications; it sounds much like Ethereum, right?
Also, the Diem blockchain has other ways around; the Diem association’s validator nodes give them strength. Similarly, these nodes will confirm the transactions and verify the blocks. Thus, users will have reasonable control over their work and benefit from efficient results.
On the other hand, we have Bitcoin. Bitcoin is not a stablecoin like Diem or pegged to any national currencies. This means that Bitcoin is a decentralized cryptocurrency, and there is no mediator, no banks, or any other sources. This is the main reason sellers and buyers were interested in this cryptocurrency on an international scale.
Suppose you can pay international sellers anonymously without any questions asked or without getting into government policies for your business, sounds about right! But the major hype of Bitcoin was getting wealthy just by trading this cryptocurrency. Surprisingly, when prices boomed into the sky in 2017.
In spite of the reason for Bitcoin, its trading isn’t neglectable. You will be surprised to know that one coin’s average price has reached about 40,000 US dollars in January 2021. For such fluctuations, people are more eager to trade with Bitcoin, but there are risks.
Is Diem also a cryptocurrency?
People are still in bemuse when they think over Diem. Surprisingly, Diem (formerly Libra) was meant to be a simple cryptocurrency, but now it isn’t. Hence, the word “Stablecoin” is more appropriate for Diem.
A stablecoin is a type of cryptocurrency pegged to some national currency or some valuable asset, such as gold and platinum. Currently, Diem pegged with the US dollar, which subsequently means that one Diem’s priceis equal to that of one US dollar.
Still, confused? In other words, we can say that Diem is a stablecoin, which is not going to fluctuate its prices as Bitcoin does. However, it is pegged to some reserves, that in the case of Diem, are other cryptocurrencies that are further pegged to national currencies. Now, if these national currencies fluctuate, so would Diem.
But here is the good part, as Bitcoin fluctuates and gives high volatility in prices, Diem won’t. In fact, Diem values would remain stable. For this reason, the Diem Association is ready, who is there to monitor and control Diem Dollar.
What is Diem Association, and how does it work?
In the early phases, Libra was about to form. A group to take care of their crypto project, Facebook made an association called Libra Association to work and manage their digital currency Libra.
Admittedly, the Libra association is no more; as a matter of fact, the Libra association is shifted to another form called Diem Association, and it has to manage the Diem Dollar, the next big thing from Facebook.
The Diem Association has twenty-seven members in total, and they claim to be an independent organization. Now, this can be a way around to make this Diem project away from Facebook, but there are no doubts about who is it at the back end.
However, the headquarters of the Diem Association is situated in Geneva, Switzerland. Therefore, this organization’s members are further several fortune companies, capitalists, and non-profit associations, such as Spotify, Uber, Mercy Corps, Coinbase, and last but not least, Facebook.
Subsequently, this means that the Diem dollar has the potential to change the vision of the business. If such big companies are running at the back end of an association, they have high capabilities.
What was the need for Diem?
Most people are still wondering that what was the actual need for Diem? To answer these simple questions, Diem isn’t under Facebook in a clear picture. Although Diem works under Diem Association, which is regulated by major tech giants and capitalists, the leading organization is still Facebook.
Clearly, Facebook has its own vision when it comes to digital cash, as the CEO of Facebook Mark Zuckerberg, claims that payments should be as simple as sending photos to each other; Diem is there to make life simpler and easier, which might attract some other users to on their social network.
Along with that, Zuckerberg raised the hat that people using their cryptocurrency would definitely benefit Facebook, and they can advertise on their social network— therefore even more expensively, which is the main cause.
Up to a point, our expert panel believes that Facebook might have other plans in focus relating to cryptocurrency. Clearly, they have invested in their own blockchain, which was originally called Calibra, but later rebranded as Novi in May. Furthermore, it is claimed that the sole purpose of Novi is to “help people around the world giving them better access to affordable financial services.
Why they had to change the name of Libra?
Diem was formerly called Libra, but do you wonder why they had to change the name? Now, the real reason is still untold, but some evidence-based factors show why they had to do so?
Because it was officially announced in June 2019, Libra had to see a number of straggling blocks, such as the major parties that were supposed to be in the Diem association, have walked away. Libra had to face a major pushback from the Senate.
Simon Peters, a crypto-analyst at a multi-asset investment platform eToro, explains: ‘Being known as the “Facebook coin” could be seen as restrictive, and a deterrent due to some issues. Facebook has had over the last 24 months with privacy and data usage.’
Admittedly, it is an attempt to show people that Diem isn’t under any influence of the major social media network Facebook. With that said it this incident reflects that the Diem project has “organizational Independence” as there are some regulatory concerns with Facebook.
However, with Diem Association on board, it is not linked to Facebook anymore, and it has the vision that seemed to threatened traditional government financial systems. As Bloomberg reports, the Diem Association is managing this project. Moreover, their currency will be known as the Diem dollar.
How can we use the Diem?
Diem dollar can be a game-changer, according to the Diem association. With that said, previously, people had to make their purchases, and in return, they had to wait for their transactions to proceed, but with the digital currency onboard, this isn’t the case anymore. You don’t have to wait for the transactions, the minimum limit, the maximum limit, and the list goes on.
The bad part of this story is that it’s only possible for transactions that aren’t in bank accounts, such as cryptocurrency but wait, it gets better; according to Diem Association, it costs about seven cents to send the money internationally. The even better part of this story is that you don’t have to wait for weeks. The average time needed for a complete transaction is about three to five working days.
However, for this purpose, the Diem association has its own tools. If users aren’t on Facebook, Messenger, or WhatsApp, they can still connect through their wallet Novi. But here is the catch, Novi is still under the procedure and not officially available; we aren’t sure what fees would apply.
According to Novi’s website, it is still pretty much clear that no matter what people are keeping in or taking out of the wallet, there are no hidden charges, and Novi is cutting fees to help people keep more money in their wallets.
What is the Diem Bitcoin difference from other cryptocurrencies?
As Diem is gaining fame in the market prior to its official launch, people are more confused about how Diem is different from Bitcoin and other cryptocurrencies? For this purpose, we have to study how Diem is not different from other cryptocurrencies first.
First of all, Diem is going to be entirely digital cash, and you will not be getting any physical note, coin, or wallet to keep it. Sounds similar to other cryptocurrencies, right? Secondly, Diem would also be operated through its Blockchain, a software ledger, similar to that of Bitcoin.
Now, things get a little tricky; Diem isn’t going to be a decentralized cryptocurrency. Instead, it would be pegged to real-life assets that would keep it stable. Hence, stablecoin is the right term to use for Diem. Originally the idea behind the Diem was to peg it with a basket of assets, but unfortunately, the Diem association couldn’t carry that further.
However, they are planning to peg Diem with a bunch of cryptocurrencies, which will be further backed up by their national currencies. Although Diem is a cryptocurrency, but you won’t see a similar idea in any competitive cryptocurrencies; they aren’t bound to any reserve, which is the reason for their high price fluctuations.
Can Diem succeed in the market?
Can the Diem dollar really prove to be a revolution in the trading industry? Well, according to the vision that Diem Association beholds, the answer is yes, it can. The parent company standing behind the Diem association is not other than Facebook; as a matter of fact, Facebook has 2.7 billion monthly active usersworldwide.
With that said, Diem can be accessible by those users, and they can quickly use Diem to pay for things they need. Surprisingly, if we put facts and figures on the table, chances are pretty good that after Diem’s launch, the accessibility to financial services might change forever.
As you know, when we have to manage our income, banks charge fees in multiple ways, but what if we get away from purchasing anything without any limitation of banking procedures? Secondly, around 1.7 billion peopledon’t have bank accounts—this means that around 31 percent of people don’t have banks, and Diem can be a solution to all of them.
If things go as expected by Diem Association, there are pretty high chances that Diem is going to succeed. After all, Facebook, WhatsApp, and Instagram already target a high audience, and Diem would be benefitted from their outreach.
Are there any risks of using Diem?
Although there are several benefits of using Diem, you have to keep in mind that all good things come at a price. Therefore, we must explain some of the risks that you might be facing while working with Diem.
As we have told you previously, Diem would be working on its blockchain; although blockchain can’t be hacked or manipulated, whereas social media platforms and digital wallets can fall prey to cyber-attacks.
Peters says: ‘Like with any asset or business that uses digital technology, you run the risk of cyberattacks and hacks. If Facebook encountered any attacks on its systems, then potentially, people’s Diem dollars could be at risk.
In short, this means that digital cash isn’t safe, but you should know that same applies to online banking as well. If you consider banking a safe medium, it isn’t as well. If a bank system’s security can compromise, people risk their bank accounts to nill.
Can Diem takeover the Bitcoin?
Well, the final results can only be seen in real-time; until then, we can only assume believing in the facts and figures. Although Diem targets a high population, experts believe that it isn’t a threat to already established cryptocurrencies such as Bitcoin.
However, over one billion Facebook users would definitely change the transactions over digital currency by making fast payments. On the other hand, if you see Bitcoin, the BTC blockchain size has increased to 316 gigabytes, which is a significant value as well.
Furthermore, the Diem isn’t launched yet, but Bitcoin is already the true king; experts believe that if Diem succeeds in the future, Bitcoin will not be affected much. But here is the good part, Diem is pegged to the US dollar; it will have its benefits and shortfalls, but at the end of the day, there are pretty high chances that people would go for the switch.
Have you heard of the Facebook-currency Diem? Well, it was previously known as the Facebook-Coin Libra, which is going to launch soon!
Do you wish to know about this stablecoin and how it can improve your life?
Then this article “7 facts about the Facebook Diem” grants you the perfect solution to your curiosity. All you need to do is: sit down and read carefully what we are about to tell you!
During the second quarter of the year 2020, it was on record that Facebook has over 2.7 billion active users making it the biggest worldwide social network. The world population is pegged at around 7.8 billion people, while the youth population is about 1.8 billion.
From this, you can see that apart from the under-aged and very old, almost every human in the world is using the Facebook platform. Many people use it for adverts, some use it for record-keeping, some for communication, many use it for fun, and lots more. As a result, the No. 1 asset, which makes the world go round, “money,” needs to be circulated on this platform.
The Facebook Diem, a stablecoin, fills in the Facebook platform’s money gap, as it will serve as Facebook’s currency.
This means that now you can buy and sell your goods/services irrespective of your current location, country, or local currency. Not just that, processing transactions with this currency works as fast as lightning. The only problem here is that it is not in circulation yet. Nevertheless, there is no need to worry as it will be made available in a short while. (To get information about Diem as soon as it’s ready: Click here)
7 THINGS YOU MUST KNOW ABOUT FACEBOOK DIEM
#1Facebook Diem is a Digital Currency
Digital currencies are the money that is not tangible — you can’t feel or touch it. Then how can I use it? Well, you can transfer and account for these currencies by using computers and smart devices. For instance, Bitcoin has been in circulation for a long time now.
The truth is that once your money cannot be felt, it becomes a digital currency. So funds sitting in your bank accounts are all digital currencies. Just like your cash in banks, these currencies are cash in your digital wallets, which you can exchange by using smartphones, computers, and even cryptocurrency exchanges. Also, you can make it tangible by withdrawing into physical cash — as you do with the machine.
#2 Diem Is a StableCoin
Stablecoins are cryptocurrencies tied to an asset, making them more dependable and reliable because of their value stability.
The Facebook Diem is a cryptocurrency tied to the US Dollar, Japanese Yen, and Euro as collateral/security. Just like Bitcoin, this is a cryptocurrency, only that it is tied to an asset.
The Diem was previously called Libra in 2020, but with the launch that is to take place any moment from now, this crypto-currency is now referring as the Facebook Diem. This new development was a new proposal by the Facebook company — an American-based social media company.
#4 Facebook Novi Is The Wallet While Diem is the currency
A wallet is provisioned for everyone who purchases the Facebook Diem. This wallet houses the Diem crypto-currency till the wallet-owner decides on an exchange. So you will need to have a Novi wallet before you can buy or sell the Diem-crypto currency.
#5 Facebook Diem Will Be Available Soon
The Facebook Diem is presently not in circulation yet, but from all indications, this currency will soon be made available.
#6 Diem Crypto-currency Is Not Decentralized
This crypto-currency consists of the following currency percentage denomination; 7% of Singapore Dollar 14% to Japanese Yen 18% to Euro 11% for the pounds sterling 50% for the US Dollar This means that, unlike Bitcoin, this currency has a strong security backup. Well, this was the previous plan, but as it stands, preference is towards the pegging of each stablecoin to an individual’s currency.
#7 The Former Libra Association Has Now Birthed Diem Association
The previous body “Libra Association” has now given way to the new Diem Association resulting from the name change of this project’
Expect the Facebook Diem anytime from now.
Do you have questions or need clarifications? Place them on the comment section for quick replies
