The controversial cryptocurrency project that Mark Zuckerberg once defended in front of Congress is unraveling after regulatory pressure. 

The Diem Association, a cryptocurrency initiative once known as Libra backed by Meta Platforms Inc., is weighing a sale of its assets as a way to return capital to its investor members, according to people familiar with the matter.

Diem is in discussions with investment bankers about how best to sell its intellectual property and find a new home for the engineers who developed the technology, cashing out whatever value remains in its once-ambitious Diem coin venture, said the people, asking not to be identified because the discussions aren’t public. 

According to Bloomberg, the Diem Association, which oversees the development of the Diem digital currency, a cryptocurrency initiative once known as Libra backed by Meta is now weighing its assets for sale.

Diem is reportedly in talks with several investment bankers to go through with the sale of the massive project. According to reports, the company is including its intellectual properties in the sale, in an effort to capture any value that is left in the ambitious project.

In 2019, Meta first floated the idea of a stable digital currency or a stable coin, with the intention of “revolutionizing global financial services”, which would pan out as a collaborative effort between various companies.

Meta had then partnered with Silvergate Bank to potentially issue a Diem USD stablecoin. Notably, stablecoins are less volatile compared to their other crypto counterparts, given that they are pegged to a specific asset class, which in this case, was the dollar.

Reasons for the Libra stable coin fail?

What Mark Zuckerberg didn’t expect was the whole political backlash that Facebook as a company started getting from all over the place. In localized areas around the world, the platform was being used to promote right-wing specific agendas with Facebook accepting advertising money from political parties. This brought much political opposition, financial fears, and many allies to abandon the project due to the bad press.

All sorts of regulatory blockades were put in place against Facebook and any project linked to them was doomed to fail. All of this pressure pushed the Diem Association to attempt to sell off its intellectual property. The entire team of cryptocurrency and blockchain engineers was suddenly in dire need of new jobs. 

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