Facebook: "Carpe Diem"
FB will very soon launch its own crypto called..... DIEM?!
What's the key learning?
- Facebook's coin is aimed at being more price stable than its competitors (meaning it is more attractive)
- Diem will be tied to the U.S dollar (unlike Bitcoin, Ethereum and Doge)
- Diem's value will not be impacted by wild swings
FACEBOOK ARE LAUNCHING WHAT NOW?
Facebook’s very own digital currency is only months away.
Back in 2019, Facebook announced it was launching a cryptocurrency ...named Libra (which got a heap of backlash)
Now, Facebook will be launching a slightly different type of digital currency named Diem (as in, Carpe Diem).
Diem will allow money to be sent via message inside Facebook's apps like WhatsApp, Messenger and Marketplace.
So, what's the key learning?
Facebook's Diem is considered a stablecoin. In other words, it's a cryptocurrency that attempts to offer price stability.
Unlike Bitcoin, Ethereum, Doge etc - Diem will peg itself to an external reference. In this case, the US dollar. This allows the crypto to maintain its purchasing power by staying linked to something ‘stable’.
Go to sleep with $1,000 worth of Doge. Wake up in the morning with $100 worth of Doge.
It's unlikely that Diem's value will be impacted by wild swings (like Elon Musk appearing on SNL).