Last Vestige of Facebook’s Crypto Project Shuts Down

  • Meta announced on Friday that it was covering its computerized wallet, Novi, on September 1
  • The move comes amid an expansive crypto money market crash and renewed scrutiny over stablecoins
  • It’s the last remnant of the Diem project that Facebook started a while ago.

Meta plans to filter its Novi advanced wallet on September 1, just eleven months after the organization known as Facebook emerged.

The organization posted the impending conclusion on Novi’s site, notifying customers that “Novi’s pilot is ending soon” and will no longer be available for use after that date.

Meta said Novi customers should withdraw their remaining balance in their Novi accounts before the closing date. Individuals can either transfer their excess balance to their ledger or withdraw the advanced assets because the money was large, the organization said.

Coinbase acted as Meta’s custodial partner on the project

Novi customers won’t be able to access their records after September 1, which means they won’t be able to retrieve account data like their trade history.

The organization shipped Novi last October in an alleged beta, or test, version with the help of digital currency trading company Coinbase.

Coinbase has been Meta’s accomplice in the venture, offering computerized storage and security innovations to help the Novi app secure individuals’ assets, the crypto trade said in an October entry. corporate blog.

At this point, Meta introduced Novi as an easy way for individuals to send and get money using the Paxos Dollar, or USDP, stablecoin digital currency. At some point, Meta wanted to issue and recognize Diem crypto money, which was backed by a Facebook-driven relationship tied to the Novi wallet.

Nevertheless, the Diem cryptocurrency project, run by the Meta-backed Diem Association, faced extraordinary scrutiny from regulators, which caused its downfall.

READ ALSO: What are the different types of crypto-mining

Meta shares were flat after hours trading at $160.00

Task manager David Marcus said he took off from Facebook last November. In January, crypto-focused bank Silvergate purchased all Diem-related innovations and protected resources from the Diem Association, a significant misfortune for Meta.

Despite considerable organizational criticism, it became clear from their interaction with government monitors that the company could not move forward, Diem’s ​​CEO said. Stuart Levey, in a statement at the time. As a result, the best way forward was to sell Diem Group’s resources, as they are doing today at Silvergate.

From then on, stablecoins came under extraordinary scrutiny amid a larger crash in the digital currency market.

The May tumble of UST, which lost its dollar stake, has backers and controllers concerned that certain types of stablecoins are unlikely to have the necessary sponsorship to recover them due to a run.

Meta shares were level in late evening trading at $160.00.

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