Facebook’s Diem has announced it is offering a pre-sale discount on its token for early investors.
“You can participate in the birth of diem and be one of the first buyers. Buy diem Coins now with cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash.”
First announced as Libra in June 2019, the project’s initial plans for a worldwide cryptocurrency have since been scaled back significantly.
This was due to several bumps in the road, including the withdrawal of significant partnerships, as well as a pasting at the hands of several political figures, who raised objections based on Facebook’s less than stellar data privacy track record.
This pre-sale indicates the project is close to launching. But considering Facebook’s reputation, is Diem doomed to fail before it even starts?
What Is Facebook Diem About?
It’s rare that the consensus surrounding a project, coming from both authorities and the crypto community, is negative. But Diem has achieved that unenviable feat ever since its existence became public knowledge two years ago.
According to the Diem whitepaper, the project is a highly scalable payment system that will complement sovereign financial infrastructures to empower billions.
“Our objective is for the Libra payment system to integrate smoothly with local monetary and macroprudential policies and complement existing currencies by enabling new functionality, drastically reducing costs, and fostering financial inclusion.”
Diem has gone to great lengths to disassociate itself from Facebook. The whitepaper mentions Facebook only once and in the capacity of being a founder of the Association Council.
This is stated with great emphasis on Facebook having no special rights over any other members of the Association Council. Members include Anchorage, Andreessen Horowitz, Coinbase, Lyft, Shopify, Spotify, and Uber.
The Announcements Keep Coming
Last month, the Diem Association announced a shift in strategy to focus on the U.S. This meant forming a new company, Diem Networks US, as well as a partnership deal with Silvergate Capital Corp. Additionally, Silvergate Bank will be the sole issuer of the Diem USD stablecoin token.
Diem was initially pitched as a token pegged to a basket of multiple different currencies. But with the shift in focus towards the U.S comes a revised plan to peg the Diem token solely to the U.S dollar.
It will run on a Facebook app/wallet called Novi, rebranded from Calibra, enabling money transfer in a similar fashion to sending a message. Rumors are that this will make its way to WhatsApp, Facebook Messenger, and Facebook Marketplace.
While the crypto community gives little love to Diem, the thing to know is that Facebook users aren’t necessarily crypto enthusiasts, to begin with.
As much as Facebook is the platform we love to hate, Diem really could be what brings crypto to the masses.