Picture source @Visual China
This article was originally published on ChainDD, authorized to be published by Titanium Media App, author | Goro Maori
Yesterday, the official website of Novi, the digital currency wallet platform owned by Facebook parent company Meta, quietly issued an announcement: We will be in Service will be closed on September 1st.
Starting from September, Novi will stop providing services on all platforms under Meta, including the social platform Facebook, the photo social platform Instagram, and the instant messaging tool WhatsApp. After September 1, users will no longer be able to log in and access their accounts.
Before Novi completely stops services, users can still log in to their accounts and withdraw their balances, or transfer funds to other bank accounts or platforms.
The sensational "Libra" project has quietly come to an end.
Novi is a digital wallet designed by Meta company around its digital currency project Diem (formerly Libra digital currency project). However, Novi was a smash hit stablecoin project before it became a digital wallet.
When Meta was still Facebook, Zuckerberg felt Facebook’s profitability difficulties and the limitations of future development, and began to constantly try new directions. The first thing to try was the popular digital currency project. Facebook wanted to establish a cross-border financial services platform by issuing stable coins. When the
Libra project started, it suffered a lot of setbacks because of its large size. Countless people pay attention to every move of this social platform with more than one billion active users around the world. In addition to issues such as data leaks, the biggest difficulty Facebook encounters is the regulatory supervision of various countries.
The United States is the biggest opponent, because Facebook’s stable currency will obviously directly threaten the status of the US dollar, and the launch of the stable currency will bring great challenges to supervision.
In 2019, Libra was forced to rename Libra to Diem and began to work quietly. However, due to the platform being too large and receiving too much attention, the project has been unable to move forward. The stablecoin plan was stopped at the beginning of 2020.
Finally, on January 31, 2022, Meta announced that it would stop the Diem project and sell all technical assets to Silvergate Capital Corporation, a U.S. bank holding company. For details, please refer to ChainDD’s previous article: [ChainDD Exclusive] Meta reluctantly cut off its currency issuance plan, and the world’s crypto assets are in trouble again. Diem CEO Stuart Levey wrote in a statement on January 31:
"While we have received positive substantive feedback on the design of the network, it is clear from our conversations with federal regulators that "The best way forward is therefore to sell Diem Group's assets. "
Before selling Diem, Meta had tested another system independent of Diem on a small scale - Novi (formerly Calibra). In this system, Meta tested services such as remittance and asset management of encrypted assets, and expected This system will be used in Meta. However, before it can get through, the wallet has stopped serving. It can be said that the stable currency project is a permanent pain for Facebook.
Novi’s dilemma is not just that of Novi. Meta, because this project was launched with the help of Coinbase (COIN), the first cryptocurrency trading platform in the global encryption industry.
In October last year, Facebook announced that it would cooperate with Coinbase and, as mentioned above, rename the original Calibra. For Novi, the project allows users to send money to each other through the app or through Facebook Messenger and WhatsApp with the help of Pax Dollar (USDP), which was announced at the time as a stablecoin pegged to the U.S. dollar.
The pilot was originally planned last year. was launched on a small scale in the United States and in Guatemala in October, but less than a year later, it was no longer viable. The announcement announcing the discontinuation of service mentioned above stated that the project would no longer be available from July 21, 2022. For deposits and transactions, only funds can be withdrawn.
html After 15 months, due to the chain effect of Luna, the crypto trading industry has been wailing, and large institutions have withdrawn their funds. The capital flow of institutional investors to the crypto industry, including derivatives, has increased in the week from June 19 to 26. $420 million. Moreover, as the price of cryptocurrency plummets, the mortgage and asset issues of various platforms have also begun to become apparent.On June 27, the cryptocurrency hedge fund Three Arrows Capital has filed for bankruptcy due to its inability to repay Voyager Digital’s current price of approximately US$670 million in debt, including Bitcoin. For details, please refer to ChainDD’s previous article: [ChainDD Exclusive] Investment Wind Vane: Cryptocurrency institutional investors have a net outflow of US$420 million. What should leeks do?
And this is just the beginning.
Coinbase, the first stock in the encryption industry, is even more miserable. ChainDD data shows that Coinbase closed at US$47 on July 4, which has fallen 86.8% compared with the highest price of US$357 in November 2011.
So, has Meta completely given up on the project that single-handedly brought the crypto industry to the forefront? The answer is, not really.
Meta will indirectly resurrect
in web3.0. The relevant person in charge of Linkede cited the email message of Meta in response to TheStreet reporter. The content of the email stated, "We will promote the technology we developed and what we learned from this plan to future products across the company, as we are currently focused on building the metaverse and . The same email also stated:
“We are already leveraging our overall capabilities of building the metaverse on the blockchain over the years and launching new products, such as Digital collectibles. You can expect to see more from us in the web3 space as we are very optimistic about the value these technologies can bring to participants in the metaverse."
However, it is worth noting that yesterday, Zach. Berg warned that companies face the worst economic downturn in recent history. Although this has nothing to do with Novi, it has to be said that the overall environment is not good.
