Facebook steered the world’s attention into the crypto sphere with its controversial venture, Libra, now rebranded as Diem. The immense scrutiny that the social media giant had to go through had left several questioning the fate of the project. However, several months after the project was shown the doors, Facebook decided to revamp Libra and put together a new team and even a new name. Facebook’s project that still underway has once again found itself swimming in troubled waters
Facebook Could Be Slapped With A Lawsuit
Facebook restored some hope into the community that anticipated the launch of Libra after the platform began formulating better plans for the launch of its crypto project. The platform certainly did everything they could to get on the good side of the regulators across the globe. However, the social media giant had once again hit blockade with its latest move. Back at the beginning of this month, Facebook revealed that Libra was no more Libra. Facebook’s latest project would now go by “Diem”.
This name was, however, already “taken”. A European fintech firm called DIEM expressed its concerns over Facebook’s latest move. Facebook’s jump from Libra Association to Diem Association has proved that the social media giant had failed to do its research or simply did not care enough about a potential lawsuit. Speaking about the same, the founder and CEO of Diem, Geri Cupi told a prominent news portal,
“We were flabbergasted on 1st December to find that Facebook’s Libra Foundation had chosen to rebrand to Diem… As a small startup, we are concerned that customer confusion resulting from Libra’s actions will significantly impact our growth.”
DIEM rolled out its platform back in October this year and managed to garner over half a million followers on Instagram. The platform offers digital pawnbroker like services to its consumers. With this platform, users can sell whatever they want instead of spending their time on bidders.
Chris Adelsbach, the co-founder of DIEM went on to point out the carelessness of Facebook. He added,
“It wouldn’t have taken that much effort for Facebook to find out if there’s another Diem in financial services.”
Adelsbach suggested that the social media giant would have perceived that “we can just crush them, we’re Facebook.”
While news about the platform engaging in a “limited release” in 2021 spread like wildfire, the latest news could pose a hurdle to the project.