back to article Carked it, Diem? Zuckerberg's grand cryptocurrency thing may sell off assets for $200m

Diem, the spurned cryptocurrency payment system spawned under the name Libra by Mark Zuckerberg's Facebook (itself now operating as Meta) will reportedly sell its assets to Silvergate Capital Corporation.  Silvergate, which announced a partnership with the Diem Association in May 2021, is negotiating with Diem to buy its …

  1. Throatwarbler Mangrove Silver badge
    Facepalm

    Why?

    Can someone explain to me, preferably using small words, why the everliving fuck someone would pay $200 million for a failed crypto coin property? Trying to figure it out is making my brain feel like it's dividing by zero.

    1. b0llchit Silver badge
      Flame

      Re: Why?

      Tax purposes.

      There is probably a loophole somewhere they can use if you move these "assets" on (virtual) paper. Probably multiple loopholes in many countries and many transfers for optimum value.

    2. msobkow Silver badge

      Re: Why?

      As poster said above, paper shuffling to maximize profits at the expense of the public that has to pay the taxes they didn't.

  2. JDPower666 Bronze badge

    Is it really a failure if the company behind it makes 200 million out of it?

    1. yoganmahew

      It depends how much they spent.

      The regulatory arguments don't wash. The reason FB is ditching Diem is because it doesn't work (pick your reason from the established list of why the ledger is a solution looking for a problem and coins have more friction than actual money)..

  3. Anonymous Coward
    Anonymous Coward

    I truly wish The Zuckerborg and all his ventures

    The worst possible outcomes.

  4. Sorry that handle is already taken. Silver badge

    Zuckerbucks

    I've been following this saga loosely since it was first mooted by Zuck and very quickly slapped down by regulators. It's been slapped down several times since then.

    I think it says something that there was apparently never anybody at Facebook to tell Zuck that it was a bad idea (at best!)

    1. John Brown (no body) Silver badge

      Re: Zuckerbucks

      It's a similar situation in all cults!

  5. Anonymous Coward
    Anonymous Coward

    Crap Diem

    Sick Transit Crypto.

  6. H in The Hague Silver badge

    What is the point?

    What is the point of having a cryptocurrency linked to a conventional/fiat currency? Wouldn't it be easier just to use the conventional currency? Am I missing something?

    1. Pascal Monett Silver badge

      Re: What is the point?

      Yup. You're missing the fact that the banking industry is so crap in the US that they've had to go and invent PayPal to try and have something useful that doesn't cost an arm and a leg to transfer money (funny money actually fails on that point, with the transfer fees costing an astounding amount for just writing a few bits into the blockchain).

      It's like the telephone industry of the US : so shit that calling someone in another state requires that you call an operator to handle it first. And woes be to you if the person you want to call isn't using the same telco as you. At least, that's how it was back when I last visited a decade ago. Who knows ? Maybe they've improved on that.

      Meanwhile, in Europe, I can call anyone in the world without bothering with anything more than the country code before the actual phone number. I can use my banking portal to send almost any amount of money to any IBAN number. In short, I am free to talk to who I want and send money to who I want. You know, like a person should be in the 3rd millennium.

      1. Sorry that handle is already taken. Silver badge

        Re: What is the point?

        It's like the telephone industry of the US : so shit that calling someone in another state requires that you call an operator to handle it first.
        What

      2. Throatwarbler Mangrove Silver badge
        FAIL

        Re: What is the point?

        @Pascal Monett

        Impressive. Every word of what you just said was wrong.

        In my lifetime, which I'm just going to say is a lot longer than 10 years, it has not been necessary to use an operator to call another state or another carrier. Calling another country I'm less sure about, but for as long as I've cared about it, it's been something you could do directly.

        Similarly, most banks have portals which allow paying entities or individuals. PayPal pioneered making it easy to pay someone electronically, and the banks had to step up.

        Your misconceptions are as dated as believing that the English never brush their teeth or the French never bathe.

        1. Michael Wojcik Silver badge

          Re: What is the point?

          Yes, Pascal's post was impressively wrong. We've seen him grind that axe several times before, though, and I expect we'll see it again.

          To go back to the original question: There are many "stablecoins". The argument for them (which, as with all cryptocurrency projects, I do not find particularly persuasive) is that they combine the partial anonymity1 of cryptocurrency with better price stability.

          There was a really nice overview of a number of stablecoin proposals and implementations, discussing the technical and economic implications of their design choices, in CACM (if memory serves) a couple years back. In many ways, the research around cryptocurrencies is far more interesting, and useful, than cryptocurrencies themselves.

          1There's a substantial body of research on de-anonymizing cryptocurrency transactions using just the metadata available, to say nothing of various attacks against poor implementations and OPSEC, or making use of normal HUMINT (e.g. getting people to turn state's evidence).

          1. Sorry that handle is already taken. Silver badge

            Re: What is the point?

            Stablecoins, as far as I can tell, are almost universally scams.

            Tether, for example, is merely being used to pump the price of other cryptocurrencies and siphon all of the real money that exists in the system at the same time.

        2. katrinab Silver badge

          Re: What is the point?

          I can do a transfer between two UK bank accounts which costs £0 and takes about 3 seconds to arrive at the destination account.

          From UK to Italy, it takes about 4 hours and costs €0.

          How do US wire transfers compare?

    2. Sorry that handle is already taken. Silver badge

      Re: What is the point?

      Facebook wanted to hold your money, simply.

  7. macjules Silver badge

    Carpe Diem

    Less 'seize the day' and more 'seize the assets' if you ask me.

  8. Howard Sway Silver badge

    The big boys are starting to leave the sinking ship

    They're lucky that there are still enough true believer idiots around willing to pay big cash to buy the worthless rusty old tub off them.

    If there was an outside chance that these fakecoins were worth sticking with, Facebook would not be selling up.

  9. Doctor Syntax Silver badge

    Is it too much to hope that we're seeing the whole sorry mess on its way out?

  10. Steve Channell

    An international stable-coin is not just for Terrorists, Drug dealers and thieves

    It might actually have some valuable software, but was always going to fail when tied to the facebook.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2022