Facebook Winds Down Crypto Project

Meta Platforms ($FB@US), the new incarnation of Facebook, is winding down a crypto project from its days as Facebook. The Diem project was supposed to be a stablecoin that would have allowed Facebook to enter the crypto market, but it has been met with several setbacks in the past. Most notably, there was quite a lot of resistance from the Federal Reserve, resistance which ultimately dealt the token what reporters are calling “the final blow.” As a result, Meta is selling the project’s technology to Silvergate Capital Corp ($SI@US) for around $200 million. This sale is an effort to get as much money back to investors as possible. This sale is interesting because Silvergate is a portfolio company of Cathie Wood’s Ark Investment Management ($ARKK@US), a firm that has been stockpiling crypto assets recently. Wood’s firm believes that Bitcoin can hit $1 million by 2030, and she has been buying up many crypto stocks that would benefit from such an increase in Bitcoin’s value. At press time, Meta Platforms stock was trading at just under $295, gaining more than a percent in overnight trading.