On January 31, Stuart Levey, CEO of Diem of stable currency project, sold the group's assets to Silvergate Capital Corp. (hereinafter referred to as "silvergare" NYSE: Si) issued a statement. The statement mentioned that in the communication with federal regulators, it was recognized that the project could not be promoted, so the decision to sell assets was made.
Meanwhile, Stuart Levey introduced that Diem has set up measures including prohibiting anonymous transactions to control risks.
In June 2019, the original Libra white paper was published. According to the first white paper, Libra is an encrypted stable currency with real assets as reserves, including bank deposits and short-term treasury bonds issued by the stable and reputable central bank. Users can convert digital currencies into legal currency. It was originally planned to be released in the first half of 2020.
At that time, Calibra, the former Facebook company, was established to take charge of the relevant services of the former Libra. The two sides were members of the Libra Association acting in concert. David Marcus was appointed as the co-founder of the Libra project and the head of Calibra company, who once worked in messenger and paypal.
The month after the release, the US Senate held a hearing on Libra to express concerns about the project, and David Marcus was present to respond. Since then, Facebook No. 2 Shirley Sandberg and founder Zuckerberg have faced cross examination from representatives of Congress. Regulatory pressure has not decreased. PayPal, visa, eBay and other members of the association quit successively.
In April 2020, the original Libra updated its version 2.0 white paper, saying that in addition to providing a basket of fixed legal currencies, it will also provide a stable currency for anchoring a single legal currency, and make changes such as abandoning the transition plan to an unlicensed public chain system. The following month, the cryptocurrency wallet "Calibra" was renamed "Novi". On December 1, 2020, the original Facebook official website updated and released information, and the super sovereign digital currency Libra was renamed Diem. Before that, it was reported that the stable currency would be launched in January 21.
In May 2021, Diem announced that Silvergate bank would become the first cooperative bank. It is rumored that Diem Association and Silvergate Capital Corp. The company reached a consensus that it planned to issue Diem stabilization currency, which was resisted by the Federal Reserve. In this year, founder David Marcus stepped down as project leader of Diem.
In January 2022, Diem was heard to start the sale negotiation. At the end of the month, the two sides made public the acquisition news respectively. Silvergate's announcement indicates that the subsidiary Silvergate bank is a Chartered Bank in California and a member bank of the Federal Reserve. It has a real-time payment platform Silvergate exchange network ("Sen"). Silvergate CEO Alan Lane said that through the integration of the acquired assets with Sen, Silvergate will launch the next generation of global payment system. Silvergate bank is known as a virtual currency friendly bank. Customers related to digital currency had previously participated in Sen. Silvergate obtained the investment of encryption venture capital digital currency group in 18 years and applied for IPO the next year.
Under the agreement, Silvergate issued 1221217 class a common shares to Diem and paid $50 million in cash. According to the closing price of Si on January 31, 2022, the total transaction consideration is US $182 million.
During the upsurge of metaverse, as the parent company of social platform Facebook, Facebook announced to change the company name to "meta" and the stock code to "mvrs" on December 1 at the annual general meeting held in October 2021. At the meeting, Zuckerberg said that he would give priority to the metauniverse rather than Facebook.
On February 3, Eastern time, meta's share price plunged 26.39% on the day of financial report release, and nearly $240 billion of market value evaporated. Meta2020 fourth quarter net profit of $10.285 billion, down 8%. User growth stagnated. The "Facebook reality labs" Department of yuancosmos lost $10.19 billion in 2021. Meta expects revenue in the first quarter to be between $27 billion and $29 billion, up 3% to 11% year-on-year, lower than Wall Street's general expectation of $30.1 billion. After the earnings meeting, JPMorgan analysts downgraded meta to neutral.
