Meta has decided to stop crypto wallet app Novi, giving up on its ambitious Libra dream, 11 months after its launch.
Meta finally decided to stop her unfinished dream for Diem and Novi. According to the official announcement on Meta’s website, the project is urging users to withdraw funds from the platform as soon as possible.
Starting from July 21, the user’s account will have the deposit/withdrawal feature disabled. The Novi wallet linked to WhatsApp will also no longer be available. Users will also not be able to access their transaction history or other data after the test is closed.
Although Meta has decided to discontinue Novi, the company said it will continue to pursue its metaverse initiatives. The company said in a statement:
“We are already leveraging the years spent on building capabilities for Meta overall on blockchain and introducing new products, such as digital collectibles. You can expect to see more from us in the Web3 space because we are very optimistic about the value these technologies can bring to people and businesses in the metaverse.”
Novi was piloted in October 2021 with the help of Coinbase as a custodial partner. At the time, Novi was advertised as an easy, safe, secure, and completely free Paxos Dollar, USDP receiving/sending gateway.
However, Libra (Meta’s stablecoin project) was later warned by US senators and put legal pressure on its ability to fight money laundering, consumer protection, and monitor other security and financial risks, forcing the project to must be paused. The project was eventually renamed Diem in December 2020, but the move did not alleviate increased pressure from the financial watchdog.
By December 2021, the “father” of the project, David Marcus, decided to resign and leave the company after many failed attempts with the authorities. A few weeks later, Meta quickly sold the asset from Diem and returned the investor’s capital. Silvergate Capital Corporation has acquired intellectual property and technology from Diem through a deal worth $180 million.
Meta’s above event comes amid a widespread downturn in the cryptocurrency market. The majority of veteran organizations are on the verge of bankruptcy.
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