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The Facebook-led Diem cryptocurrency project is preparing to sell its assets for $200m, as the social media giant admits defeat in its once-sprawling digital payments ambitions. The Diem Association, which was launched by Facebook in 2019 quickly came under political fire leading to early members Visa, Mastercard, eBay, Stripe and Mercado Pago quitting shortly after signing up. The buyer according to one source is California-based Silvergate Bank.
Meta has been seeking revenue sources to power its future growth. The Silicon Valley group has been stung by recent scandals over content moderation and privacy, contributing to a drop in popularity for its main social networking products Facebook and Instagram, a trend that threatens its $85bn-a-year ad-based business model. The sale is likely to give Diem the opportunity to pay out some funds to the initiative’s founding members, who initially committed $10m to participate.
https://www.ft.com/content/e237df96-7cc1-44e5-a92f-96170d34a9bb
